EstatePass
Practice Of Real EstateLicense_lawHARD

Salesperson Nina lists a property for Seller Bob. During the listing period, Nina learns that Bob's property has a serious foundation defect that Bob has not disclosed. Bob instructs Nina to say nothing about it to prospective buyers. Under Kansas law, which of the following best describes Nina's legal obligation?

Correct Answer

D) Nina must disclose the known material defect to prospective buyers regardless of Bob's instructions, or risk disciplinary action and civil liability

Under the Kansas Residential Real Property Disclosure Act (K.S.A. 58-30,101 et seq.) and KREC's rules, a licensee who knows of a material defect has an independent duty to disclose that defect to prospective buyers, even if the seller instructs otherwise. Following a seller's instruction to conceal a known material defect exposes Nina to KREC disciplinary action under K.S.A. 58-3072 and potential civil liability for misrepresentation or fraud.

Answer Options
A
Nina must follow Bob's instructions because the seller controls the listing and Nina owes Bob undivided loyalty as his agent
B
Nina may remain silent about the defect as long as she does not make any affirmative misrepresentations to buyers
C
Nina should withdraw from the listing immediately but has no independent obligation to disclose the defect once she terminates the agency
D
Nina must disclose the known material defect to prospective buyers regardless of Bob's instructions, or risk disciplinary action and civil liability

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

material_defectdisclosure_dutyseller_agentkrec_discipline

Related Concepts

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing