An agent's representative in Victoria discovers that a property they are listing has significant termite damage that the vendor has instructed them not to disclose. What is the representative's ethical and legal obligation?
Correct Answer
D) Disclose the damage to buyers, since concealing a known material defect would be misleading.
Despite the vendor's instructions, an agent or agent's representative cannot participate in concealing a known material defect. Under the ACL and the Estate Agents Act 1980, knowingly concealing such information constitutes misleading conduct. The representative should advise the vendor of the legal obligation to disclose and, if the vendor refuses, consider withdrawing from the listing.
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