Agency
A listing broker discovers that the property has an underground storage tank that has not been disclosed. The broker's duty requires:
ADisclosure to prospective buyers as a material defect
BKeeping it confidential to protect the seller's interest
CRecommending the seller lower the price without explanation✓ Correct
DReporting only to the managing broker, not to buyers
Explanation
A known underground storage tank is a latent material defect that must be disclosed to prospective buyers. Even a seller's agent cannot conceal known material defects — the duty of disclosure to all parties requires honesty about material facts.
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