A licensee knows that a property has a history of recurring water intrusion in the basement. The same issue is also documented in the county's code enforcement records, which are publicly accessible. Under Georgia disclosure law, how does the existence of a public record affect the licensee's disclosure obligation?
Correct Answer
B) The licensee must still disclose the known material adverse fact, because the availability of public records does not eliminate the licensee's independent duty of honesty.
Under BRRETA (O.C.G.A. § 10-6A-5), a licensee's duty of honesty requires disclosure of known material adverse facts about the property's condition. The fact that the same information may exist in public records—such as county code enforcement files—does not relieve the licensee of this obligation. Georgia law does not create an exception allowing licensees to remain silent about known defects simply because a diligent buyer could theoretically discover the information independently. The licensee's actual knowledge triggers an affirmative duty to disclose.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
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