agency

disclosure

As a fiduciary duty, disclosure requires an agent to tell the client all known information that could affect the client's interests or decisions, such as other offers, a buyer's financial strength, or the agent's own interest in the deal. Separately, licensees must disclose known material facts and defects to all parties. The specific disclosure forms and timing vary by state.

Exam tip: Disclosure is the D in OLDCAR. A frequent trap pits disclosure against confidentiality: the agent must disclose material facts about the property but must not reveal a client's confidential motivations.
Example: A seller's agent learns the buyer just received a large bonus and tells the seller, since this information affects the seller's negotiating position.

1. On a property condition disclosure form, if a seller does not know the age of the roof, the seller should:

Answer & explanation

Answer: C. Only the seller completes the form, reporting what is known and stating when something is unknown; guessing creates liability.

Related terms & state variants

confidentiality fiduciary duties material fact OLDCAR

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23