Agency
A listing agent in New York who learns that the seller's property has an undisclosed material defect should:
AKeep the information confidential as part of fiduciary duty to the seller
BDisclose the defect to prospective buyers because the duty to disclose overrides the duty of confidentiality for material facts✓ Correct
CRefuse to show the property until the seller repairs the defect
DLower the listing price without notifying the seller
Explanation
In New York, the fiduciary duty of confidentiality does not extend to material defects that could harm a buyer. The agent must disclose known material facts to prospective buyers.
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