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A Georgia licensee is working with a buyer interested in a duplex. During the showing, the seller mentions that a known drainage issue on the property is 'no big deal' and suggests the licensee pass that along to the buyer. The property is located near a flood zone, and the buyer asks the licensee whether the drainage could affect flood risk. How should the licensee handle this situation?

Correct Answer

B) Advise the buyer that the drainage and flood-risk questions require technical expertise and recommend the buyer consult qualified inspectors, engineers, or the appropriate public agencies for accurate information.

Under Georgia law, licensees have a duty to act within the bounds of their competence. When a condition involves technical matters such as flood-zone determinations, drainage engineering, or environmental assessments, the licensee should direct consumers to qualified professionals—inspectors, surveyors, engineers, insurers, or public agencies—rather than offer opinions beyond their expertise. This principle is supported by BRRETA (O.C.G.A. Title 10, Chapter 6A) and Georgia's disclosure requirements under O.C.G.A. § 44-1-16, which expect licensees to facilitate informed decisions without overstating their own qualifications.

Answer Options
A
Relay the seller's characterization of the drainage issue as minor directly to the buyer, since the seller has firsthand knowledge of the property.
B
Advise the buyer that the drainage and flood-risk questions require technical expertise and recommend the buyer consult qualified inspectors, engineers, or the appropriate public agencies for accurate information.
C
Avoid discussing the drainage issue or flood maps entirely, since these topics are too technical for any licensee to address in any capacity.
D
Accept the seller's written disclosure about the drainage issue as conclusive and assure the buyer that no further investigation is needed.

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Related Topics & Key Terms

Key Terms:

georgiastate_portionmaterial_facts_honesty_and_statutory_disclosure_boundariesga_disclosures

Related Concepts

Death on property disclosure addresses whether sellers must inform buyers about deaths that occurred on the property, including natural deaths, suicides, and murders. Requirements vary significantly by state.

Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.

Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.

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