Disclosures

Disclosures — Agency & Contracts > Exam relevance: Disclosures questions appear across two of the highest-weighted exam topics — Agency (13%) and Contracts (17%) — and directly connect to the Disclosures & Environment chapter (6%). Together, these three areas can account for roughly one-third of your national exam score. Getting disclosure rules right is not optional. --- ## Why Disclosures Matter in Agency & Contracts When you act as a real estate agent, *who* you represent determines *what* you must disclose, *to whom*, and *when*. Misunderstanding this relationship is a top source of exam errors — and real-world liability. --- ## Key Concept 1: Material Facts A material fact is any information that would affect a reasonable buyer's decision to purchase or the price they would pay. The duty to disclose material facts is not limited to your clients — it extends to all parties, including customers (non-clients). > Plain English: Even if you represent the seller, you cannot hide a leaky roof from the buyer. The loyalty fiduciary duty means you work *for* your client; it does not mean you lie *to* the other side. ### "As Is" Clauses Do NOT Eliminate Disclosure Duty One of the most commonly tested points: a seller who sells a property "as is" still must disclose known material defects. An "as is" clause shifts repair responsibility — it does not create a license to conceal. Fraudulent concealment claims survive "as is" language. --- ## Key Concept 2: Agency Disclosure Agency disclosure is the agent's obligation to inform all parties of the agency relationship being created — specifically, *who* the agent represents. ### When Must It Happen? Agency disclosure must be made at…