Agency

A South Dakota seller instructs their agent not to disclose that the basement floods every spring. The agent should:

AFollow the seller's instructions since the seller is the principal
BRefuse to conceal the known material defect and advise the seller to disclose or end the relationship✓ Correct
CDisclose only if directly asked by a buyer
DAsk the SDREC for guidance before proceeding

Explanation

An agent cannot follow client instructions to conceal known material defects, as this would constitute fraud. The agent must advise the seller to disclose and, if the seller refuses, the agent may need to withdraw from the representation.

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