Agency
A Texas real estate agent discovers a material defect in a property they are listing. They must:
ADisclose it only if the buyer specifically asks
BDisclose it to prospective buyers because agents have a duty to disclose material facts✓ Correct
CKeep it confidential as directed by the seller
DOnly note it on the seller's disclosure notice without verbally disclosing
Explanation
Texas real estate agents have an affirmative duty to disclose material facts that affect the value or desirability of a property, even if the seller instructs them not to. Concealing a known material defect can constitute fraud and a violation of TREC rules and the DTPA.
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