Business Degree Certification Practice Test

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A California real estate broker is representing a seller. The broker discovers a significant, undisclosed structural defect during a showing. What is the broker's primary obligation?

To keep the defect confidential to protect the seller's interests. To disclose the defect to potential buyers, even if the seller instructs otherwise. To advise the seller to fix the defect before proceeding with the sale. To only disclose the defect if specifically asked by a buyer.

Correct Answer:

To disclose the defect to potential buyers, even if the seller instructs otherwise.

Explanation:

A California real estate broker has a fiduciary duty to disclose all material facts affecting the value or desirability of the property to prospective buyers, regardless of seller instructions.

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