Agency
A Wisconsin agent discovers a material defect in a listed property that the seller has not disclosed. The agent must:
AKeep it confidential to protect the seller
BDisclose it to prospective buyers as a material fact✓ Correct
CReport it only to DSPS
DWait until an offer is received before mentioning it
Explanation
Wisconsin law requires licensees to disclose known material defects to prospective buyers regardless of the agency relationship. Failure to disclose a known material defect violates DSPS rules and can result in license discipline.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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