A Queensland real estate agent discovers that a property they are listing has significant structural issues. The agent's ethical and legal obligation is to:
Correct Answer
D) Tell prospective buyers about the known defects so they are not misled
While an agent has duties to their seller client, they also have a legal obligation not to engage in misleading or deceptive conduct. Known material defects must be disclosed to prospective buyers. Concealment exposes the agent to liability under the ACL and the Property Occupations Act 2014.
Why This Is the Correct Answer
An agent must not engage in misleading or deceptive conduct, and staying silent about a known, significant structural defect can mislead buyers. The agent should advise the seller that the defects will be disclosed and then disclose them to prospective buyers.
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