A listing agent learns that the basement had water damage years ago that was fully repaired. The seller has no legal obligation to disclose it and refuses to mention it in the listing. What is the agent's best course of action?
Correct Answer
A) Advise the seller of the risks, keep it confidential, never misrepresent
Because the seller has no legal obligation to disclose the repaired damage, the O. Reg. 567/05 s. 22.2 duty to tell buyers does not arise, and Code of Ethics s. 12 bars disclosing the client's confidential information without written consent. The agent should advise the seller about the practical risks of silence, and must never make a false or misleading statement to a buyer, because Code s. 5 prohibits misrepresentation.
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A listing agent discovers that the property they are marketing has a serious foundation issue that the seller has not disclosed. What is the agent's ethical obligation?
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