Agency
A Texas seller's agent who learns that their seller is involved in an ongoing lawsuit affecting the property must:
AKeep the information confidential under the duty of confidentiality
BDisclose the pending litigation as a material fact affecting title/value to prospective buyers✓ Correct
CReport the lawsuit to TREC immediately
DWait for the lawsuit to conclude before disclosing
Explanation
Pending litigation that may affect title or the use/value of a property is a material fact that must be disclosed to prospective buyers. The duty of confidentiality does not override the duty to disclose material facts affecting the property.
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