Agency
A seller's agent who learns that the buyer cannot qualify for a larger mortgage should:
AKeep this information confidential to protect the buyer
BDisclose this material fact to the seller client✓ Correct
CCancel the listing agreement immediately
DAdvise the buyer to apply with a different lender before telling the seller
Explanation
A seller's agent owes a duty of disclosure to their seller client. If the agent learns material information about the buyer's financial ability — such as the inability to qualify for adequate financing — this must be disclosed to the seller.
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