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Ga Agency BrretaTransaction_broker_and_ministerial_actsHARD

During a property showing, a transaction broker notices what appears to be water damage in the basement that wasn't disclosed. The buyers don't seem to notice it. What should the transaction broker do?

Correct Answer

C) Inform both parties about the observed condition and suggest professional inspection

Correct: Transaction brokers must disclose material facts to both parties and can suggest professional inspections as this is factual and neutral. Why not A: Informing only one party could constitute advocacy. Why not B: Transaction brokers have a duty to disclose observed material facts. Why not D: Advising on remediation strategies constitutes advice beyond ministerial acts.

Answer Options
A
Point out the potential water damage to the buyers only
B
Ignore it since they're not an inspector and it's not their responsibility
C
Inform both parties about the observed condition and suggest professional inspection
D
Advise the buyers to have the sellers fix the problem before closing

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Related Topics & Key Terms

Key Terms:

material_factsdisclosure_dutyprofessional_inspection

Related Concepts

The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.

In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.

An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.

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