A client asks their licensee to hide a known defect in the property during marketing. What should the licensee do?

Option A: Follow the client's instructions to maintain the relationship

Following client instructions to hide defects would constitute misleading or deceptive conduct under the Real Estate Agents Act 2008. Professional obligations override client instructions when those instructions would breach legal and ethical requirements. Maintaining client relationships cannot justify engaging in conduct that could harm consumers or breach professional standards.

Option C: Only disclose if specifically asked by potential buyers

Only disclosing when asked is insufficient and still constitutes misleading conduct. The Real Estate Agents Act requires proactive disclosure of material facts, not passive responses to specific questions. Known defects are material facts that must be disclosed regardless of whether buyers specifically inquire about them. This approach could still result in buyers making uninformed decisions.

Option D: Suggest the client fix the defect before marketing

While suggesting repairs might seem helpful, this doesn't address the immediate ethical obligation. If the client chooses not to fix the defect, the licensee would still need to disclose it. This option avoids the core issue of disclosure requirements and doesn't provide a complete solution to the ethical dilemma presented in the scenario.