hard · National Real Estate Exam agency
A seller's agent learns from a structural engineer's report that the home's foundation has a serious, unrepaired crack materially affecting value. The seller instructs the agent not to disclose this to any buyer.
What should the agent do?
- Follow the seller's instruction, since loyalty to the principal is absolute.
- Disclose the material defect despite the seller's contrary instruction.
- Withdraw from the listing but say nothing further to any buyer.
- Disclose only if a buyer's inspector independently discovers the crack.
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