Agency
A seller's broker who lists a home knowing the seller is withholding material defect information should:
AList the property as instructed by the seller
BRefuse to participate in the misrepresentation and may need to withdraw from the listing✓ Correct
CDisclose only what the seller approves
DNote the issue internally but proceed with the listing
Explanation
A broker cannot participate in or condone misrepresentation or concealment of material defects. If the seller refuses to disclose known material defects, the broker may need to withdraw from the listing rather than facilitate fraud.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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