Agency
A Minnesota seller instructs their listing agent: 'Do not tell any buyers about the wet basement.' The agent's best course of action is to:
AFollow the seller's instructions since they are the client
BDisclose the wet basement to all prospective buyers
CDisclose it only if a buyer asks directly about the basement
DWithdraw from the listing if the seller insists on non-disclosure✓ Correct
Explanation
If a seller instructs an agent to conceal a known material defect, the agent faces an ethical and legal dilemma. The agent cannot comply with instructions to conceal material facts.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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