A buyer is planning to purchase a property where he can operate a small mechanic's shop out of his home. He eventually finds a property he likes, and tells the listing agent his plans. However, after closing he finds out that there are deed restrictions that prevent him from operating such a business from his home. Which of the following is true?

A. Since the agent knew the buyer's intended use, the agent should have investigated whether it was feasible or informed the buyer that he or his agent should investigate it
B. The agent represented the seller and did not have a duty of loyalty to the buyer
C. The seller always has to disclose the zoning on the property
D. The real estate agent was the one responsible for investigating deed restrictions

Answer: A. Since the agent knew the buyer's intended use, the agent should have investgated whether it was feasible or informed the buyer that he or his agent should investigate it
The seller's agent does not owe a duty of loyalty to the buyer, so he is not required to investigate anythingon the buyer's behalf. However, this duty of honesty and good faith would likely compel him to at least recommend to the buyer that he or his agent should investigate the matter further. The listing agent should know that zoning or deed restrictions would prevent most residential properties from being used for a mechanic's shop, the issue is a material fact and not advising the buyer to look into it could lead to a lawsuit.