An agent discovers that a property they are marketing has a significant structural defect that the vendor has not disclosed. What is the most appropriate course of action?
Correct Answer
C) Advise the vendor of the disclosure duties and stop acting if they refuse
Professional ethics require agents to ensure material facts are disclosed. The agent should advise the vendor of their legal obligations and may need to cease acting if the vendor refuses to make proper disclosures.
Why This Is the Correct Answer
The agent should explain the vendor's disclosure obligations and the risks of concealment. If the vendor refuses to allow proper disclosure of a known material defect, the agent should stop acting rather than take part in misleading conduct.
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