Oregon 30-Hour Real Estate Law Practice Test

What must an agent do if they become aware of any undisclosed material facts about a property?

1. Present those facts only at closing.

2. Remain silent unless directly asked.

3. Disclose those facts to all parties involved.

4. Consult with their supervisor first.

The correct answer is: Disclose those facts to all parties involved.

The correct choice emphasizes the crucial responsibility of an agent in real estate transactions to ensure transparency and protect the interests of all parties involved. When an agent becomes aware of undisclosed material facts about a property, it is their duty to disclose these facts to all relevant parties, which typically includes the buyer, seller, and potentially their respective agents. Material facts refer to information that would affect a party's decision regarding the property, such as structural issues, zoning problems, or any legal or financial concerns. By disclosing such information, the agent fosters trust and upholds ethical standards in real estate practice, ensuring that all parties can make informed decisions. Failing to disclose material facts can result in significant legal liabilities for both the agent and their brokerage, as well as deterioration of trust in the agent-client relationship. Therefore, ensuring all parties are informed correctly adheres to legal requirements and professional ethics governing real estate transactions. The other choices suggest actions that would not fulfill an agent's ethical and legal obligations. Presenting facts only at closing would not allow the parties to make informed decisions earlier in the process. Remaining silent, unless directly asked, could lead to misunderstandings and potential legal repercussions. Consulting with a supervisor may be necessary in some complex situations, but