Agency

An Oregon real estate broker discovers during a listing that the property has a serious structural defect the seller is unaware of. The broker should:

ADisclose it to the buyer only if they ask
BKeep it confidential to protect the seller's interests
CDisclose the material defect to both the seller and prospective buyers✓ Correct
DReport it to OREA but not disclose it to buyers

Explanation

A material defect that could affect the property's value or a buyer's decision must be disclosed. The broker should first inform the seller (who may not be aware of it) and then ensure the defect is disclosed to prospective buyers, as it is a known material fact regardless of who the agent represents.

Related Oregon Agency Questions

Practice More Oregon Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Oregon Quiz →