Agency
An agent discovers mold behind the walls of a listed property while reviewing seller-disclosed inspection reports. The seller says 'don't mention it.' The agent should:
AFollow the seller's instruction since they control the listing
BDisclose the mold to prospective buyers as a known material defect✓ Correct
CAdd it to the MLS only
DAdvise the seller to reduce the price without disclosing the reason
Explanation
An agent with knowledge of a material defect (mold behind walls) must disclose it to prospective buyers regardless of the seller's instructions. Failure to disclose a known material defect violates fiduciary duty and license law.
People Also Study
Related Arkansas Questions
- A seller's listing agent discovers a material defect in the property. The agent's duty regarding this defect is to:Agency
- A buyer's agent who fails to disclose known material defects to their buyer client has breached the fiduciary duty of:Agency
- Which of the following is NOT a fiduciary duty owed by an agent to their client?Agency
- The fiduciary duty of 'loyalty' requires a listing agent to:Agency
Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
State-Specific Concepts
License Law
Study This Topic
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →