An Alberta listing agent learns that the seller client's home has a hidden foundation defect that buyers are unlikely to spot on a viewing. What is the agent's primary obligation?
Correct Answer
D) Disclose the defect to all buyers, and refuse further service if told to hide it
Rule 57(i) of the RECA Rules requires a licensee acting as a seller's agent to disclose to all buyers all material latent defects affecting the property that the licensee knows about. If the seller instructs the licensee to withhold that disclosure, Rule 41(j) requires the licensee to refuse to provide further services to that client.
Why This Is the Correct Answer
The RECA Rules put the disclosure duty on the licensee. Rule 57(i) requires a seller's agent to disclose to all buyers all material latent defects known to the licensee, and a hidden foundation defect is one. Rule 41(j) requires the licensee to refuse further services to a client who instructs them to withhold a required disclosure, so the agent discloses and stops acting if the seller insists on concealment.
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- → A real estate agent discovers that a property they are showing has a known foundation issue that the seller has not disclosed. What should the agent do?
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- → A listing agent learns that the home was once used as a marijuana grow operation and has since been fully remediated. The seller's lawyer confirms the seller has no legal obligation to disclose this, and the seller does not want it disclosed. What should the listing agent do?
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A listing agent learns that the home was once used as a marijuana grow operation and has since been fully remediated. The seller's lawyer confirms the seller has no legal obligation to disclose this, and the seller does not want it disclosed. What should the listing agent do?
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An Alberta associate learns that a licensee at a competing brokerage has been making false statements about properties the associate has listed. Under the RECA Rules, what must the associate do?