Agency

A Vermont listing agent learns that the basement has flooded twice in the past three years. The seller asks the agent not to disclose this. The agent should:

AHonor the seller's request as confidentiality is a fiduciary duty
BDisclose the known material defect to prospective buyers regardless of the seller's wishes✓ Correct
CDisclose only to buyers who specifically ask about flooding
DWithdraw from the listing rather than disclose any information

Explanation

A material defect affecting the property's value must be disclosed to prospective buyers. While confidentiality is a fiduciary duty, it does not extend to hiding material defects from buyers. An agent who conceals known material defects may face liability.

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