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.
Why This Is the Correct Answer
The agent serves the vendor first, so she raises the damage with the vendor, recommends professional advice and explains the disclosure obligations. She still cannot market the property in a way that conceals the defect.
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