Agency
A Texas listing agent who learns their seller-client intends to not disclose a known foundation problem is obligated to:
AFollow the seller's instructions and not disclose
BWithdraw from the representation and/or disclose the known material defect✓ Correct
CDisclose only if the buyer asks about it
DReport the seller to TREC immediately
Explanation
An agent cannot participate in a client's fraud or misrepresentation. If the seller instructs the agent to conceal a known material defect, the agent must either refuse to participate in the concealment, withdraw from the representation, or disclose the defect.
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