Which action is not considered a violation of real estate license law?

Prepare for the South Dakota Real Estate Test. Ace your exam with flashcards and multiple choice questions. Each question is supported with hints and explanations to help you succeed!

Informing a buyer about a property's latent defect is considered a responsible action rather than a violation of real estate license law. In real estate practice, it is essential for agents and brokers to uphold a standard of honesty and transparency. A latent defect refers to an issue that is not readily observable or discoverable by ordinary inspection. When a real estate professional informs a buyer about such defects, they are fulfilling their duty to disclose material facts about the property, which is a requirement under the law.

This duty to disclose helps protect consumers and promotes trust in real estate transactions. In contrast, actions like failing to disclose known property defects, misleading advertising, and receiving undisclosed commissions represent violations of ethical and legal standards in real estate practice. Thus, informing a buyer of latent defects is indeed a compliant and ethical practice within the real estate industry.

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