Agent Lisa is showing a property to buyers when she notices fresh paint in the basement that appears to be covering water stains. She has no actual knowledge of water damage. Which statement is INCORRECT regarding her obligations?

Correct Answer

C) She has no disclosure obligation since she lacks actual knowledge of damage

Correct: This statement is incorrect. Under Georgia law, agents must disclose observable conditions that could indicate material defects, even without actual knowledge of the underlying problem. The suspicious paint job covering apparent water stains should be disclosed. Why A is correct: Recommending professional inspection is appropriate due diligence. Why B is correct: Observable suspicious conditions must be disclosed. Why D is correct: Encouraging direct buyer-seller communication about potential issues is proper practice.