Agency

A seller tells their Iowa agent that the basement floods every spring. The agent must:

AKeep this confidential as it would harm the seller's negotiating position
BDisclose this material fact to potential buyers✓ Correct
COnly disclose if the buyer specifically asks about flooding
DRemove the information from the MLS listing

Explanation

Known material defects—such as seasonal flooding—are material facts that Iowa agents must disclose to potential buyers regardless of whether asked, even when representing the seller.

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