Oregon 30-Hour Real Estate Law Practice Test 2026 – Comprehensive All-in-One Guide to Master Your Exam Success!

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Which fiduciary duty has Norman breached by not disclosing the significant crack in the foundation?

The duty of obedience

The duty of confidentiality

The duty of loyalty

The duty of disclosure

The duty that Norman has breached by failing to disclose the significant crack in the foundation is the duty of disclosure. In real estate transactions, fiduciaries are required to disclose all material facts that could affect the principal's decision-making process. This obligation ensures that clients have all relevant information when making important decisions about their property.

By not revealing the issue with the foundation, Norman withheld critical information that could significantly influence the buyer's view of the property's value and its safety. This breach undermines trust and transparency, which are essential components of a fiduciary relationship. Clients rely on their agents to provide all pertinent details so they can make informed choices. Thus, the failure to disclose such a significant defect is a clear violation of the duty of disclosure, emphasizing the need for honesty and full transparency in real estate dealings.

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