medium · National Real Estate Exam
An agent is told by a seller to "stay away from the back corner of the lot" during showings because there is a sinkhole hidden by brush. The agent follows this instruction and a buyer eventually purchases the lot and discovers the hole.
Is the agent liable?
- No, because the agent was simply following the seller's directions for showing the property.
- Yes, because the agent actively participated in concealing a latent material defect.
- Yes, but only if the agent was the one who personally covered the hole with brush.
- No, because the sinkhole was on the land and not in the house itself.
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