License Law & AgencyQuestion 41 of 100
A material defect that a seller's agent knows about the property must be:
a.Concealed to protect the seller
b.Reported only to the Department of State
c.Revealed only if the buyer asks directly
d.Disclosed to prospective buyers
Explanation
Even while representing the seller, an agent must honestly disclose known material defects to buyers and cannot participate in active concealment or fraud. The duty of honesty to third parties coexists with loyalty to the principal. Failing to disclose can expose the agent to liability.
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