A real estate salesperson learns that a property they listed has foundation issues that the seller hasn't disclosed. What should they do according to professional ethics?
Correct Answer
B) Advise the seller to disclose it and withdraw if they won't
Professional ethics require agents to ensure material facts are disclosed to protect all parties. The agent must advise proper disclosure and cannot participate in misrepresentation, even for their client.
Why This Is the Correct Answer
Option B is correct because real estate professionals have a duty to ensure material facts are disclosed to protect all parties. Under TRESA, RESA, and provincial regulations, agents cannot participate in misrepresentation or fraud. The agent must advise the seller to disclose foundation issues as they constitute material latent defects. If the seller refuses, the agent must withdraw from the representation to maintain professional integrity and comply with ethical obligations that supersede client loyalty when public interest is at stake.
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- → Which of the following best describes the duty of confidentiality owed by a real estate agent?
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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 real estate professional in Alberta fails to disclose that they have a personal financial interest in a property they are marketing. This violation could result in which of the following consequences under RECA regulations?
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A registrant listing a property learns that the basement leaks, a latent defect the seller is legally obliged to disclose to buyers. The seller wants to conceal it. What should the registrant do under Ontario law?