A salesperson is representing a seller who insists on not disclosing a past flood in the basement, despite the salesperson's advice that it is a material fact. The salesperson's ethical duty under TRESA requires them to:

Question: A salesperson is representing a seller who insists on not disclosing a past flood in the basement, despite the salesperson's advice that it is a material fact. The salesperson's ethical duty under TRESA requires them to:

Answer options: ✅ Refuse to continue representing the seller if the seller insists on concealing the material fact.

• Proceed with the listing but ensure the seller signs a waiver acknowledging they are withholding information.
• Disclose the flood to potential buyers themselves, even against the seller's wishes, to avoid misrepresentation.
• Only disclose the flood if directly asked by a potential buyer or their agent.

Correct answer: Refuse to continue representing the seller if the seller insists on concealing the material fact.

Explanation: Section 3 of the Code of Ethics under TRESA (formerly REBBA) requires registrants to disclose all material facts known to them regarding a property. If a seller refuses to disclose a material fact, the registrant cannot engage in an act of misrepresentation or provide services that would lead to misrepresentation, meaning they must refuse to represent the client.