Agency
A seller instructs their listing agent not to disclose that the basement floods during heavy rain. What should the Pennsylvania licensee do?
AFollow the seller's instructions since the seller is the client
BDisclose the flooding condition to prospective buyers regardless of the seller's instructions✓ Correct
CInclude the flooding disclosure only if directly asked by a buyer
DTerminate the listing immediately and report the seller to PREC
Explanation
Pennsylvania RELRA and the Pennsylvania Seller's Property Disclosure Law require disclosure of known material defects affecting the property. A licensee cannot follow client instructions that require them to violate the law or harm third parties. The licensee must disclose the known flooding condition to prospective buyers. If the seller refuses, the licensee should advise the seller of the legal requirements and, if the seller persists, consider withdrawing from the listing.
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