Agency
If a Montana seller's agent discovers that a property has undisclosed foundation problems, they must:
AKeep this information confidential as part of seller loyalty
BDisclose the material fact to prospective buyers✓ Correct
CAdvise the seller to lower the price without explaining why
DWithdraw from the listing without disclosing to the buyer
Explanation
Montana law requires all licensees, including seller's agents, to disclose material facts affecting the value or desirability of the property, even when representing the seller.
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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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