medium · National Real Estate Exam
An agent is asked by a seller to hide the fact that a neighbor has successfully sued the seller over a fence line dispute that is still unresolved.
What must the agent do?
- The agent must disclose the pending litigation as it is a material fact affecting the title.
- The agent only needs to disclose it if the buyer's title search fails to find it.
- The agent should follow the instruction under the duty of confidentiality to the client.
- The agent must obey the seller because the neighbor might lose the case eventually.
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