Agency
A NH seller asks their listing agent to tell buyers there is 'nothing wrong with the property' even though the agent knows the property has a history of flooding. The agent should:
AFollow the seller's instructions to maintain their fiduciary duty
BRefuse the instruction and disclose the flooding history to buyers as a material fact✓ Correct
COnly disclose if the buyer asks specifically about flooding
DDisclose only to the buyer's agent, not the buyer directly
Explanation
A history of flooding is a material defect that must be disclosed. The fiduciary duty of loyalty does not require an agent to commit fraud or misrepresentation. NH agents have an independent duty to disclose known material defects, and following the seller's instruction to conceal flooding would expose the agent to liability.
Related New Hampshire Agency Questions
- When a NH buyer's agent presents an offer that is rejected by the seller, the agent's duty to the buyer includes:
- A NH listing agent presents an offer from a buyer who is a close friend of the agent's spouse. The agent should:
- In New Hampshire, the 'first meaningful contact' disclosure rule means an agent must disclose agency options:
- In New Hampshire, an agent may represent a buyer as a customer (non-client) rather than a client. As a customer, the buyer receives:
- A NH buyer's broker who learns during the transaction that the seller is going through a divorce and is under financial pressure must:
- A seller's agent in New Hampshire must disclose to a prospective buyer:
- If a NH buyer's broker receives a referral fee from a mortgage lender for steering the buyer to that lender without disclosing it, this violates:
- A buyer's agent in New Hampshire who discovers a material defect unknown to the seller must:
Practice More New Hampshire Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Hampshire Quiz →