AgencyIntermediateAlabama Exam

A seller's agent who discovers a serious foundation crack that the seller has concealed should:

AKeep the information confidential at the seller's request, as a general rule
BDisclose the defect to prospective buyers, even against the seller's wishesCorrect
CReport the seller to AREC
DWithdraw from the listing without disclosing the reason

Why Disclose the defect to prospective buyers, even against the seller's wishes Is Correct

Answer B: Disclose the defect to prospective buyers, even against the seller's wishes

A licensee cannot withhold known material defects from buyers, even on the seller's instructions. Disclosure of known material defects is required regardless of the seller's wishes.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

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