A licensee representing the seller tells a prospective buyer that a home is insulated with asbestos. The licensee is:

This choice implies that the licensee is providing excessive information beyond legal requirements. However, disclosing known material facts such as the presence of asbestos is often mandated by law, especially in real estate transactions, making this statement inaccurate.

Disclosing the presence of asbestos does not equate to disloyalty to the seller. In fact, informing the buyer of such crucial information can protect the seller from future liability and is consistent with the duty to act in good faith and with honesty in transactions.

This choice suggests that providing information about asbestos is unethical. On the contrary, ethical standards in real estate require licensees to disclose material facts that could affect the buyer's decision-making process. Therefore, the licensee's action aligns with ethical responsibilities.