Sarah, a licensed salesperson, discovers that a property she is marketing has a leaky roof that the vendor has not disclosed. The vendor refuses to disclose this information. What should Sarah do according to the Code?

Option A: Continue marketing the property as the vendor is responsible for disclosure

Option A is incorrect because while vendors have primary disclosure responsibilities, licensees cannot simply ignore known material defects. The Code requires licensees to act with integrity and in good faith toward all parties. Continuing to market a property while knowing of undisclosed defects would breach these fundamental professional obligations and potentially constitute misleading conduct under the Real Estate Agents Act 2008.

Option C: Disclose the information to potential purchasers despite the vendor's wishes

Option C is incorrect because it would breach client confidentiality and the agency relationship. While licensees have duties to potential purchasers, they cannot unilaterally disclose confidential client information without permission. This would violate the fiduciary duty owed to the vendor client and could result in disciplinary action under the Real Estate Agents Act 2008 for breaching professional conduct standards.

Option D: Reduce the asking price to account for the undisclosed defect

Option D is incorrect because licensees cannot unilaterally adjust pricing without client authority. This would exceed the scope of the agency agreement and potentially constitute unauthorized conduct. Additionally, reducing the price doesn't address the fundamental disclosure issue and could still mislead purchasers who remain unaware of the specific defect and its implications for the property's condition and value.