Question

multiple choice question

vance is the listing broker of a used home. if vance has knowledge of a latent material defect that would affect the health and safety of the buyer, vance:

• has an affirmative duty to disclose the defect to the buyer
• must disclose the defect only if the buyer asks about it
• must withhold the defect from the buyer
• has an affirmative duty to repair the defect

Explanation:

Analyze the disclosure requirements for latent material defects

Under Alabama real estate law, while the state generally follows the doctrine of caveat emptor (buyer beware) for used homes, there are critical exceptions. A licensee has an affirmative duty to disclose any known latent material defect that affects the health or safety of the buyer.

Evaluate the given options

• Option 1: "Has an affirmative duty to disclose the defect to the buyer" directly aligns with the legal exception for health and safety issues.
• Option 2: "Must disclose the defect only if the buyer asks about it" is incorrect because health and safety hazards require proactive (affirmative) disclosure.
• Option 3: "Must withhold the defect from the buyer" is incorrect and violates licensing law.
• Option 4: "Has an affirmative duty to repair the defect" is incorrect because a broker's duty is to disclose, not to make physical repairs.

Answer:

• Has an affirmative duty to disclose the defect to the buyer (Correct answer)
• Must disclose the defect only if the buyer asks about it
• Must withhold the defect from the buyer
• Has an affirmative duty to repair the defect