A buyer's agent discovers that a listed property contains an in-law suite that was built without permits and generates rental income for the seller. The agent also determines that the local zoning ordinance prohibits accessory dwelling units used as rental units in this residential zone. What are the buyer's agent's disclosure obligations?
Correct Answer
B) Disclose both the unpermitted construction and the zoning violation to the buyer
Under Georgia law (O.C.G.A. § 10-6A-5), a licensee must disclose to their client all known material facts that could affect the property's value, legal use, or marketability. Both the unpermitted construction and the zoning violation are material adverse facts: the unpermitted suite may not meet building code requirements and could require costly remediation or removal, while the zoning violation means the current rental use is illegal and could subject the buyer to enforcement action. A buyer's agent who knows of both issues must disclose both.
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