AgencyIntermediateCalifornia Exam

A seller's agent discovers a material defect during a property showing. The agent must:

ADisclose it only if the buyer directly asks
BDisclose it to the buyer regardless of the seller's wishesCorrect
CKeep it confidential as the seller's agent
DDisclose it only after escrow opens

Why Disclose it to the buyer regardless of the seller's wishes Is Correct

Answer B: Disclose it to the buyer regardless of the seller's wishes

California law requires a seller's agent to disclose known material defects affecting the property's value or desirability to all parties, even if the seller objects. The duty to disclose material facts overrides the duty of confidentiality.

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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