A buyer asks a Georgia licensee whether a property is located in a flood zone. The licensee has seen a recent FEMA flood map suggesting the property may be in a designated flood area. Which statement best describes the licensee's obligation under Georgia law?
Correct Answer
A) The licensee should inform the buyer about the potential flood-zone issue and direct the buyer to authoritative sources such as FEMA flood maps for verification, rather than offering a personal interpretation of the map.
Under BRRETA (O.C.G.A. Title 10, Chapter 6A), Georgia licensees must disclose known material adverse facts and act honestly in dealings with all parties. When a licensee is aware of a potential flood-zone issue, the proper course is to alert the buyer and direct them to reliable, authoritative sources (such as FEMA) rather than offering unsupported personal interpretations of technical data.
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