Agency

An Arizona listing agent discovers a material defect in the property that the seller forgot to disclose. The agent should:

AKeep it confidential because of the duty of loyalty to the seller
BDisclose the defect to prospective buyers✓ Correct
CRefuse to show the property until the defect is repaired
DOnly disclose if specifically asked about it

Explanation

Despite owing loyalty to the seller, an agent has an overriding obligation to disclose known material defects to prospective buyers. The duty of loyalty does not extend to concealing material defects.

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