Illinois Leasing Agent Practice Exam

If a broker is instructed to hide the existence of termites, what should the broker do?

1. Ignore the instruction and continue the listing

2. Withdraw from the agency agreement

3. Disclose the information to potential renters

4. Seek written consent from the owner

The correct answer is: Withdraw from the agency agreement

When a broker is instructed to hide the existence of termites, withdrawing from the agency agreement is the most ethical and legally sound course of action. Brokers and agents have a fiduciary duty to act in the best interests of their clients while also adhering to legal and ethical standards. Hiding serious issues such as termite infestations not only exposes potential renters to unnecessary risks but also places the broker at legal risk for misrepresentation or fraud. By choosing to withdraw from the agency agreement, the broker proactively protects themselves from engaging in unethical practices that could lead to liability. Moreover, this decision upholds the integrity of the real estate profession, ensuring that all parties involved are treated fairly and transparently. Other options, such as ignoring the instruction or seeking written consent from the owner to withhold such critical information, do not adequately address the potential harm and legal implications associated with nondisclosure.