Agency

A Massachusetts seller's agent discovers the basement has significant water damage that the seller did not disclose. The agent's proper course of action is to:

AKeep it confidential as part of the fiduciary duty to the seller
BDisclose it to prospective buyers as a known material defect✓ Correct
CRefuse to show the property until repairs are made
DNotify only the buyer's attorney

Explanation

Despite representing the seller, a Massachusetts agent must disclose known material defects to buyers. The duty of honesty and disclosure of material facts overrides the duty of confidentiality regarding property condition.

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