Agency
A Nebraska seller instructs their agent to conceal a known crack in the foundation. The agent must:
AFollow the seller's instructions to maintain loyalty
BDisclose the crack despite the seller's instructions✓ Correct
CWithdraw from the listing without disclosing why
DOnly disclose if directly asked by buyers
Explanation
Known material defects must be disclosed regardless of the principal's instructions. Concealing material defects is fraud and the agent cannot follow illegal instructions, even from their principal.
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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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