In Queensland, if a property is subject to a flood overlay under the local planning scheme, the agent marketing the property must:
Correct Answer
B) Disclose the known flood risk, since silence about it may be misleading
Agents have an obligation not to engage in misleading conduct. A flood overlay is a material fact that may affect a buyer's decision. Silence on such matters, when the agent is aware, can constitute misleading or deceptive conduct.
Why This Is the Correct Answer
A flood overlay is a material fact that affects value, insurance and use. An agent who knows of it and stays silent risks misleading buyers, so the agent should disclose it during marketing.
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