Agency
In Missouri, an agent who discovers that a home has an undisclosed underground oil tank is obligated to:
ATell only the buyer
BTell only the seller
CDisclose the finding to the seller and advise them to disclose it to buyers✓ Correct
DKeep it confidential to protect the sale
Explanation
An agent who discovers an undisclosed material defect must advise the seller to disclose it to prospective buyers. The agent cannot knowingly participate in concealing material defects.
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Key Terms to Know
Agency
A 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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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