Agency
In Colorado, a broker who is a transaction broker discovers the seller has a hidden structural defect. The broker must:
AKeep the defect confidential per the seller's request
BDisclose the adverse material fact to the buyer✓ Correct
COnly disclose if the buyer's inspection reveals the issue
DWithdraw from the transaction
Explanation
Even transaction brokers in Colorado must disclose adverse material facts to all parties. Concealment of known material defects is prohibited regardless of the type of brokerage relationship.
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