A seller asks their listing agent to avoid mentioning a known foundation issue because the seller believes it has been adequately repaired. The seller has not disclosed this condition on any form. Under Georgia law, which statement best describes the licensee's obligation regarding this situation?
Correct Answer
A) The licensee must not suppress or fail to disclose known material adverse facts, regardless of the seller's preference for silence.
Under BRRETA (O.C.G.A. § 10-6A-5), a licensee owes a duty of honesty to all parties, which includes not knowingly making false or misleading statements and not failing to disclose known material adverse facts about the physical condition of the property. A seller's desire to minimize or hide a known defect does not relieve the licensee of this independent duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
Asbestos disclosure involves informing buyers about the presence of asbestos-containing materials (ACMs) in a property. Asbestos was commonly used in construction materials before 1980 and poses health risks when fibers become airborne.
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
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