Agency
The seller's agent discovers that the home has a leaking roof the seller did not disclose. The agent should:
AIgnore it since the seller chose not to disclose
BDisclose the material defect to potential buyers✓ Correct
CWait until the buyer's inspection to let the inspector find it
DAdvise the seller to lower the price without disclosing the defect
Explanation
An agent who has actual knowledge of a material defect must disclose it to potential buyers even if the seller has not disclosed it. Failure to disclose a known material defect violates the agent's duty to all parties and license law.
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