Agency
A NH real estate agent who discovers the seller has concealed a material defect (such as a hidden flooding issue) has which duty?
AFollow the seller's instructions and keep it confidential
BDisclose the material defect to buyers, even though the agent represents the seller✓ Correct
CReport the seller to NHREC without disclosing to buyers
DTerminate the listing without any further action
Explanation
While a seller's agent owes confidentiality to the seller, this duty does not extend to concealing material defects from buyers. NH agents have an independent duty to disclose known material defects to all parties, regardless of who they represent.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
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.
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