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.
Why This Is the Correct Answer
Known structural problems are a material fact. An agent cannot follow an instruction to conceal them, because doing so would be misleading conduct and breach the agent's conduct obligations.
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