A broker negotiated the sale of a client's acreage. Shortly after the seller accepted the buyer's offer, the broker found out that the buyer's agent had recently arranged for the same buyer to pay a much higher price per acre for similar acreage nearby. In this situation:
A. nothing can be done about it now that there's already a contract
B. the broker should disclose this information to the seller
C. the broker should contact the other agent and try to renegotiate the contract
D. the contract is void for inadequate consideration
Answer: B. the broker should disclose this information to the seller
Explanation: The true market value of the property is always a material fact that must be disclosed, even if a binding contract has already been formed. If the discrepancy between the sales price and the market value is great enough, the seller might find it advantageous to breach the contract, risk a lawsuit, and attempt to obtain a higher price.
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