Illinois Real Estate Practice Exam

The correct answer is that the agent should disclose the change in zoning and the resulting increase in value. In real estate transactions, transparency and honesty are crucial, especially when an agent is acting in a dual capacity – as both an agent for the seller and as a potential buyer.

When an agent intends to purchase a property themselves, they have an obligation to inform the seller about any relevant information that may affect the property's value, including changes in zoning laws. Disclosing such information not only demonstrates ethical behavior but also helps to maintain trust between the agent and the seller. Failing to disclose significant changes like zoning could expose the agent to legal liabilities and ethical violations, as it could be perceived as taking advantage of the seller's lack of knowledge regarding the increased value of the property.

By providing this information, the agent ensures that the seller is fully informed about the market conditions and can make a well-informed decision regarding the sale of the property. This transparency supports fair practices in real estate and is in accordance with both legal and ethical standards in the industry.