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Agency PracticeProfessional ConductEASY

An agent discovers that a property has potential structural issues but the vendor instructs them not to disclose this to buyers. What should the agent do?

Correct Answer

D) Refuse the instruction and disclose the known structural issues as a material fact

Agents have a legal duty to disclose material facts that could affect a buyer's decision, even when instructed otherwise by their principal. This duty overrides the instruction from the vendor and is essential for professional conduct and consumer protection.

Answer Options
A
Follow the vendor's instruction, since the agent's duty of loyalty runs to the vendor
B
Stay silent until contracts are exchanged and then tell the buyer about the issues
C
Disclose the structural issues only to a buyer who asks about them directly
D
Refuse the instruction and disclose the known structural issues as a material fact

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Related Topics & Key Terms

Key Terms:

material factsdisclosure obligationsAustralian Consumer Lawstructural issuesconsumer protection
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