A buyer's broker discovers a material fact about a property under contract. To whom should this fact be disclosed first?

In the context of a real estate transaction, a buyer's broker holds a fiduciary duty to the buyer. This means that the broker has the responsibility to act in the best interest of the buyer at all times. When the broker discovers a material fact about a property under contract, the appropriate course of action is to disclose that information first to the buyer.

Disclosing material facts to the buyer ensures that they have all relevant information that could influence their decision regarding the property. It is the buyer's right to be fully informed about significant issues that may affect their investment, perception of value, or even their decision to move forward with the purchase.

While the seller, listing broker, and lender may also need to be aware of certain facts at some point in the transaction, the priority disclosure obligation lies with the buyer. This ensures that the buyer can make an informed decision and protect their interests effectively.