Agency
A Rhode Island listing agent learns that the seller's property has a leaking basement that was not disclosed. The agent's duty is to:
AKeep the information confidential as instructed by the seller
BDisclose the known material defect to prospective buyers✓ Correct
CInclude the information in the MLS remarks at the seller's discretion
DWithdraw from the listing immediately
Explanation
Even though the agent represents the seller, Rhode Island law requires disclosure of known material facts (such as a leaking basement) to prospective buyers. Concealing a known material defect exposes both the agent and seller to liability.
Related Rhode Island Agency Questions
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