Agency
A Florida broker lists a property. During showings, the broker discovers that the roof has an active leak that the seller hasn't mentioned. The broker must:
AKeep the information confidential to protect the seller's interests
BDisclose the leak to prospective buyers as a known material fact affecting value✓ Correct
CAdvise the seller to fix the roof before the next showing
DDisclose the leak only to the buyer's agent, not directly to the buyer
Explanation
Under Florida law (codified from Johnson v. Davis) and the broker's duty of full disclosure, known material defects that are not readily observable must be disclosed to potential buyers. An active roof leak is clearly a material defect. The broker cannot remain silent — concealing this would constitute misrepresentation and breach of the broker's duties under Florida law.
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