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Mandated DisclosuresMaterial_facts_honesty_and_statutory_disclosure_boundariesEASY

A Georgia licensee is listing a home in an HOA community. The seller instructs the licensee not to mention a recurring water intrusion issue in the basement because the seller believes it has been resolved. The licensee has personally observed water stains during a recent visit to the property. What is the licensee's obligation regarding this condition?

Correct Answer

B) Refrain from making or repeating any misleading statement about the property's condition, regardless of the seller's preference for silence on the issue.

Under BRRETA (O.C.G.A. Title 10, Chapter 6A) and Georgia's property disclosure framework under O.C.G.A. § 44-1-16, a licensee has an independent duty of honesty that is not overridden by a seller's instructions. A licensee who knows of a material condition—such as observable water intrusion evidence—may not suppress or misrepresent that information simply because the seller prefers silence. The duty of honesty runs to all parties in the transaction.

Answer Options
A
Honor the seller's instruction and omit any mention of the water intrusion, since the seller is the client and has authority over what is disclosed.
B
Refrain from making or repeating any misleading statement about the property's condition, regardless of the seller's preference for silence on the issue.
C
Document the seller's instruction in writing and proceed without disclosure, since the written record protects the licensee from future liability.
D
Disclose the water stains only if the buyer submits a written request specifically asking about water intrusion history.

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Related Topics & Key Terms

Key Terms:

georgiastate_portionmaterial_facts_honesty_and_statutory_disclosure_boundariesga_disclosures

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