Agency

In Oregon, a listing broker learns that the seller's property has a cracked foundation. The seller asks the broker not to disclose this. What should the broker do?

AHonor the seller's request and keep the defect confidential
BDisclose the material defect to prospective buyers regardless of the seller's instruction✓ Correct
CRemove the listing from the market immediately
DReport the seller to OREA without disclosing to buyers

Explanation

Oregon licensees have an independent legal and ethical duty to disclose known material defects to buyers, even if the seller instructs non-disclosure. A broker who withholds a known material defect at the seller's request violates ORS Chapter 696 and the Code of Ethics.

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