An Alberta associate learns that a property they are listing has a significant hidden structural defect that the seller has not disclosed. What is the associate's obligation?
Correct Answer
D) The associate must disclose the defect to all buyers and refuse further service if told to hide it
Rule 57(i) of the RECA Rules requires 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 associate to withhold that disclosure, Rule 41(j) says the associate must refuse to provide further services to the seller.
Why This Is the Correct Answer
The associate must disclose the defect because Rule 57(i) requires a seller's agent to disclose to all buyers all known material latent defects. If the seller says not to, Rule 41(j) requires the associate to refuse further services, rather than merely allowing the associate to consider stopping.
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