Agency
When an Indiana seller's agent learns of a material defect that the seller has not disclosed, the agent should:
AIgnore it to protect the seller's interests
BDisclose it to potential buyers as a material fact✓ Correct
CTell the seller but keep it confidential from buyers
DRemove it from the listing agreement
Explanation
An agent who knows of material defects affecting the property's value or desirability has a duty to disclose these facts to buyers, even if the seller instructs otherwise. Concealing known material defects constitutes misrepresentation.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
AgencyA 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.
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