Agency
In Montana, when a seller instructs the listing agent to conceal a material defect (such as a leaking roof) from buyers, the agent must:
AFollow the seller's instruction since sellers are the principal
BRefuse the instruction, disclose the defect as required by law, and potentially withdraw from the listing if the seller insists on concealment✓ Correct
COnly disclose to other agents, not directly to buyers
DDisclose only if the buyer's inspector finds it
Explanation
An agent cannot follow instructions to conceal material defects. Montana law requires disclosure of known material defects to buyers.
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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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