Agency
A Maryland listing agent who knows the property has a history of flooding but fails to inform a buyer is guilty of:
APermissible silence — the seller did not disclose this to the agent
BFraudulent misrepresentation by omission of a material fact✓ Correct
CAcceptable non-disclosure since flooding is weather-related
DA minor ethical lapse with no legal consequences
Explanation
A known material defect such as flooding history must be disclosed regardless of the source of information. Silence about a material fact can constitute fraudulent misrepresentation.
Related Maryland Agency Questions
- A Maryland seller's agent learns the seller will accept $10,000 below the list price. The agent is asked by the buyer's agent if the seller will negotiate. The listing agent should:
- A Maryland licensee acting as a seller's agent discovers that the buyer is being transferred and must close quickly. The licensee may:
- The duty of 'loyalty' owed by a Maryland agent to a client means the agent must:
- A Maryland agent who knows that a seller is in financial distress and MUST sell quickly should:
- A Maryland seller's agent discovers a structural defect during a showing that the seller has not disclosed. The agent must:
- In Maryland, a seller's agent who receives two offers simultaneously must:
- A Maryland buyer's agent who learns the buyer has been pre-approved for $500,000 but is offering $400,000 should:
- When a Maryland listing expires and is relisted with a new broker, the seller's confidential information shared with the first broker:
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →