Agency

A Louisiana listing agent learns that the seller's property has a history of flooding that the seller did not disclose. The agent's duty under Louisiana law is to:

AKeep the information confidential to protect the seller
BDisclose the known material defect to potential buyers✓ Correct
COnly disclose if the buyer specifically asks about flooding
DRefer the buyer to check FEMA maps independently

Explanation

Louisiana law requires licensees to disclose known material defects that affect the property's value or desirability. A history of flooding is a material fact that must be disclosed to potential buyers regardless of the seller's wishes.

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