Agency

A Maine buyer's agent learns from the listing agent that the property is the subject of pending litigation (a boundary dispute). The buyer's agent must:

AKeep the information confidential
BDisclose this material fact to the buyer client✓ Correct
COnly disclose if the buyer asks about litigation
DReport the information to the MREC

Explanation

Pending litigation affecting a property is a material fact that must be disclosed to the buyer client. The buyer's agent's duty of disclosure and the listing agent's obligation to disclose known material defects both apply.

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