Agency

A seller's listing agent discovers a material defect in the property. The agent's duty regarding this defect is to:

ADisclose it only if asked by a buyer
BKeep it confidential to protect the seller's interests
CDisclose it to prospective buyers as a material fact✓ Correct
DReport it only to AREC

Explanation

Even as a seller's agent, a licensee has a duty to disclose known material defects to buyers. The duty of loyalty to the seller does not override the obligation to disclose material facts that could affect the buyer's decision.

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