Agent Sarah represents a seller whose property has a basement that floods during heavy rains. The seller instructs Sarah not to disclose this information, stating 'the buyer should inspect for themselves.' Under Georgia law, what must Sarah do?
Correct Answer
B) Disclose the flooding issue as it is a material fact affecting property value
Correct: Under O.C.G.A. § 43-40-25(b)(8), licensees must disclose material facts known to them that could adversely affect the property's value or desirability. Flooding is clearly a material fact that must be disclosed regardless of client instructions. Why not A: Client loyalty does not override statutory disclosure requirements. Why not C: Material facts must be disclosed proactively, not just when asked. Why not D: While legal counsel might be helpful, the disclosure obligation is immediate and clear.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
More Mandated Disclosures Questions
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- → In Vermont, covered pre-1978 property is shown to a buyer. Which statement is correct?
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