A seller's agent discovers a major foundation crack while preparing the listing. What is the agent's obligation?
Correct Answer
B) Disclose the defect to all prospective buyers
Under Iowa law, a seller's agent has a duty to disclose all known material defects to prospective buyers, regardless of whether they ask. A major foundation crack is a material fact that could significantly affect the value or desirability of the property and must be proactively disclosed to all prospective buyers.
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