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Agency PracticeProfessional ConductMEDIUM

Sarah, a licensed agent, discovers significant structural damage during a property inspection that the vendor hasn't disclosed. What should she do to comply with her professional obligations?

Correct Answer

C) Advise the vendor to get professional advice and explain the disclosure obligations

The agent should tell the vendor what she found, recommend independent professional advice, and explain that known material defects cannot be concealed from buyers. If the vendor then insists on concealment, she must not continue in a way that misleads buyers.

Answer Options
A
Take no action, since inspecting the building's structure is not the agent's job
B
Tell prospective buyers about the damage straight away without first telling the vendor
C
Advise the vendor to get professional advice and explain the disclosure obligations
D
Withdraw from the agency immediately without explaining the reason to the vendor

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Related Topics & Key Terms

Key Terms:

fiduciary dutydisclosure obligationsAustralian Consumer Lawprofessional conductmisleading conduct
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