Agency
In Michigan, a buyer's agent discovers that the property's basement has a history of flooding not disclosed by the seller. The agent should:
AAdvise the buyer to reduce their offer slightly
BDisclose the information to the buyer as a known material defect✓ Correct
CTell only the listing agent to handle
DIgnore it since the home inspection will reveal it
Explanation
A buyer's agent who discovers a material defect (flooding history) must disclose it to their client. Withholding known material defects from the buyer breaches the agent's fiduciary duty of disclosure.
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