Agency
A Pennsylvania seller's agent who discovers that their listed property has an undisclosed material defect must:
AKeep it confidential under the duty of loyalty to the seller
BDisclose it to potential buyers as a known material fact✓ Correct
CWithdraw from the listing immediately
DReport it to PREC before disclosing to buyers
Explanation
In Pennsylvania, a seller's agent must disclose known material defects to prospective buyers regardless of the seller's instructions. The duty of loyalty to the seller does not extend to concealing material defects that affect buyers' decisions.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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