Agency
A Kentucky licensee representing a seller discovers a material defect. The licensee must:
AKeep the defect confidential to protect the seller
BDisclose the defect to prospective buyers✓ Correct
CDisclose only if the buyer specifically asks
DWait for the home inspection to reveal the defect
Explanation
Kentucky licensees have a duty to disclose known material defects to prospective buyers, regardless of the seller's instructions to conceal them.
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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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