Agency
Under North Dakota agency law, a seller's broker who discovers a latent material defect not disclosed by the seller should:
AKeep quiet to protect the seller's transaction
BDisclose the known material defect to prospective buyers✓ Correct
CAdvise the seller to sell the property 'as-is' to avoid liability
DWithdraw from the listing but not disclose anything
Explanation
Despite representing the seller, North Dakota license law requires agents to disclose known material defects to buyers. Concealing material defects constitutes fraud and violates licensee duties to the public, overriding the duty of confidentiality to the client.
Related North Dakota Agency Questions
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- A buyer tells a North Dakota agent that they're willing to pay up to $350,000 but wants to offer $320,000. If this buyer hires the agent as a buyer's agent, the agent must:
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- In North Dakota, the agency disclosure document must be provided:
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