Agency & LawQuestion 32 of 120
A seller instructs the listing agent to conceal a known foundation problem from prospective buyers. The agent should:
a.Follow the instruction because of the duty of obedience
b.Disclose the problem only to buyers who ask directly
c.Cancel the listing and tell no one
d.Refuse, because the duty of obedience does not extend to unlawful acts
Explanation
The duty of obedience applies only to lawful instructions; an agent may not follow directions to commit fraud or conceal material defects. Knowingly hiding a known material defect can expose both the agent and seller to liability.
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