An associate is acting for a seller whose property has a known structural defect that is not immediately obvious. The seller has instructed the associate not to disclose this defect to potential buyers. What is the associate's obligation under RECA Rules?

Question: An associate is acting for a seller whose property has a known structural defect that is not immediately obvious. The seller has instructed the associate not to disclose this defect to potential buyers. What is the associate's obligation under RECA Rules?

Answer options: ✅ The associate must refuse to follow the seller's instruction and disclose the material latent defect.

• The associate must prioritize the seller's instructions, as client confidentiality is paramount.
• The associate should only disclose if specifically asked by a potential buyer.
• The associate should advise the seller to remediate the defect before listing.

Correct answer: The associate must refuse to follow the seller's instruction and disclose the material latent defect.

Explanation: RECA Rules Section 40(e) requires a real estate professional to act honestly and with reasonable care and skill. Withholding information about a known material latent defect would be a breach of this duty, as it misleads potential buyers, and the associate has a duty to disclose such defects regardless of seller instructions.