Question

Serena, a Minnesota broker, represents a seller client. A buyer made an offer on the seller's property, which was accepted contingent upon a home inspection. After the inspection is performed, the buyer's agent provides a copy of the report, which doesn't include any mention of the roof leak Serena's client told her about. What obligation does Serena have?

(A) Serena has no obligation to disclose the roof leak to the buyer, since the buyer's agent didn't find it during the inspection.
(B) Serena has an obligation to disclose the roof leak to the buyer, even though the buyer's agent didn't find it during the inspection.
(C) Serena has an obligation to have the roof leak repaired before closing, even though the buyer's agent didn't find it during the inspection.
(D) Serena has no obligation to do anything about the roof leak, since the buyer's agent didn't find it during the inspection.

Answer 1

Serena has an obligation to disclose the roof leak to the buyer, even though the buyer's agent didn't find it during the inspection.The correct option is B.

Step-by-step explanation:

According to the scenario, Serena, the Minnesota broker representing the seller, is obligated to disclose the roof leak to the buyer, even though the buyer's agent did not find it during the inspection. As a real estate professional, Serena has a fiduciary duty to act in the best interests of her client and provide all material information that could affect the buyer's decision. The roof leak mentioned by Serena's client is considered material information that could influence the buyer's decision to purchase the property.

Disclosing the roof leak allows the buyer to make an informed decision and decide whether to proceed with the purchase or negotiate repairs with the seller. Failing to disclose the leak could lead to legal repercussions and potential liability for Serena.

Hence, the correct option is: Serena has an obligation to disclose the roof leak to the buyer, even though the buyer's agent didn't find it during the inspection.