Agency
A Rhode Island seller instructs their agent to tell buyers that there are no foundation problems, but the agent knows there are cracks in the foundation. The agent should:
AFollow the seller's instructions to avoid losing the listing
BRefuse to misrepresent or conceal the known material defect and disclose the foundation issue to buyers✓ Correct
CSimply avoid showing the basement
DTell buyers to consult their own inspector without disclosing the known issue
Explanation
An agent must not follow instructions to conceal or misrepresent known material defects. Disclosing known material defects to buyers is an ethical and legal obligation that overrides the seller's instructions.
Related Rhode Island Agency Questions
- In Rhode Island, subagency means that a cooperating broker working with the buyer is actually an agent of the:
- Apparent authority in agency arises when:
- Which of the following best describes 'express agency' in Rhode Island real estate?
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- Under Rhode Island law, a 'non-exclusive buyer agency agreement' means:
- Agency can be terminated by all of the following EXCEPT:
- A Rhode Island buyer's agent is showing properties. The buyer mentions they have a maximum budget of $450,000 but would like to start lower. The agent should:
- Under Rhode Island law, which statement about buyer agency agreements is correct?
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