A buyer's agent is aware that a property sits in a FEMA-designated flood zone based on publicly available flood maps. The seller's disclosure form does not mention flooding. When the buyer asks the agent about potential flood risk, which approach best reflects the licensee's duty under Georgia law?
Correct Answer
A) The licensee should clearly separate personal knowledge, information reported by the seller on disclosure forms, and matters requiring verification by qualified experts or public agencies.
Under BRRETA (O.C.G.A. § 10-6A-5), licensees owe a duty of honesty that includes accurately representing what they know and not making misleading statements. Best practice—and the standard reinforced in Georgia continuing education materials—requires licensees to distinguish between their own knowledge, seller-reported information, and matters that require expert or governmental verification (such as FEMA flood designations, engineering assessments, or survey data). This layered approach protects all parties and ensures the buyer receives accurate, properly sourced information.
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