Agency

An Oregon listing broker discovers a material defect in the listed property that the seller wants kept secret. The broker's correct action is to:

AHonor the seller's request since the seller is the client
BDisclose the defect to all prospective buyers because Oregon licensees have a duty to disclose known material facts✓ Correct
CWithdraw from the listing immediately without telling the buyer
DPlace the information in the MLS remarks field only

Explanation

Under ORS 696.805 and the Oregon Real Estate Agency rules, licensees have an affirmative duty to disclose known material facts about a property that could affect a buyer's decision. This duty overrides client confidentiality — a licensee cannot follow a seller's instruction to conceal material defects from buyers.

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