A Georgia licensee knows that a previous occupant of a listed property died of a communicable disease on the premises. The licensee also knows the property has a cracked foundation that has not been repaired. How should the licensee handle these two facts under Georgia disclosure law?

Correct Answer

A) The licensee should treat these as distinct categories: the disease-related stigma may be protected under § 44-1-16, but the cracked foundation is a known material physical defect that must be disclosed.

Under O.C.G.A. § 44-1-16, Georgia provides a safe harbor for nondisclosure of certain stigma-related facts—such as a prior occupant's disease—that do not affect the physical condition of the property. However, this safe harbor does not extend to known material physical defects like a cracked foundation. Georgia licensees must distinguish between stigma facts (which may be protected) and physical defects (which must be disclosed), because they fall under entirely different disclosure frameworks.