Agency

A buyer's agent discovers that the property has a material defect not disclosed by the seller. The agent should:

AIgnore it, since it is the seller's duty to disclose
BDisclose the known defect to the buyer✓ Correct
CTell the seller to fix the defect before continuing
DWithdraw from the transaction

Explanation

A buyer's agent has a duty to disclose all known material defects to the buyer, regardless of whether the seller has disclosed them. This duty of disclosure to the buyer is a core fiduciary obligation.

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