A listing agent discovers that a property had defective Chinese drywall installed during a 2006 renovation, which was completely removed and replaced with standard drywall in 2012. The seller has documentation of the replacement but asks the agent whether disclosure is necessary since the problem was fully corrected. What is the agent's obligation?
Correct Answer
A) Disclose the prior Chinese drywall issue and provide documentation of the complete remediation
Under BRRETA (O.C.G.A. § 10-6A-5), a licensee must disclose known material facts that affect the value of residential property and that are not readily observable. The prior installation of defective Chinese drywall—known to cause corrosion of copper wiring, HVAC components, and health concerns—is a material fact even after remediation. Full disclosure of both the defect and the documented remediation fulfills the agent's legal duty and allows buyers to make a fully informed decision.
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