SHOULD A REAL ESTATE AGENT DISCLOSE DIVORCE IN A HOME SALE?

It is not uncommon to see a couple going through a divorce to sell their marital home. We see it every day. In this case, is the real estate agent obligated to tell the buyers that the sellers are going through a divorce?

When a divorcing couple makes the decision to put their marital home on the real estate market the couple has a fiduciary responsibility to the real estate agent why the sellers are selling the home. They also have a duty to tell the agent other personal information in regards to the home sale and information regarding the home itself, including upgrades and latent defects etc. The real estate agent also has a fiduciary duty to disclose to the buyers any information regarding the home. Since disclosing a divorce sale does not affect the value of the home it is not necessary to disclose that the sellers are going through a divorce.

Also, disclosing the divorce would be a breach of fiduciary responsibility to the sellers, because it would suggest to any buyer that the sellers might accept a lower price. Any personal information about the seller that does not relate to the material value of the home must be kept private.

It may affect the sellers’ motivation to sell but not the material value of the home itself and the sellers do not have to disclose personal reasons for selling or other personal information that doesn’t affect the material value of the home.