A WA real estate agent discovers that a property they are selling has a serious pest infestation. What is their ethical obligation?
Correct Answer
B) Disclose the infestation to prospective buyers as a material fact
An agent who knows of a serious pest infestation must not hide it from buyers. Silence about a known material defect that buyers would reasonably expect to be told about can be misleading or deceptive conduct under the ACL, and it breaches the agent's conduct obligations in WA. The disclosure is owed whether or not a buyer asks.
Why This Is the Correct Answer
A serious pest infestation is a material fact, and an agent who knows of it must disclose it rather than leave buyers with a false impression.
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A WA agent is approached by a buyer who wants to submit an offer well below market value on a property where the seller is elderly and potentially vulnerable. The buyer asks the agent to pressure the seller into accepting. What should the agent do?
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