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Mandated DisclosuresEnvironmental_and_federal_disclosures_in_gaHARD

A buyer asks a Georgia licensee about potential flood-zone risks, radon exposure, and whether the property may contain asbestos. Georgia does not have a single comprehensive environmental disclosure statute covering all such issues. How should the licensee best handle these environmental concerns?

Correct Answer

B) Disclose known material facts, comply with applicable federal disclosure requirements such as lead-based paint rules, and refer the buyer to qualified environmental professionals for issues beyond the licensee's expertise.

Georgia does not have a universal environmental disclosure statute. Instead, licensees address environmental concerns through a combination of duties: disclosing known material facts under Georgia license law (O.C.G.A. § 43-40-25), complying with federal requirements such as the Residential Lead-Based Paint Hazard Reduction Act, and referring buyers to qualified experts (environmental inspectors, FEMA flood-map resources, radon testers) for issues that exceed the licensee's competence. This approach fulfills the licensee's duty of honesty while staying within professional boundaries.

Answer Options
A
Prepare a comprehensive written opinion on each environmental issue based on the licensee's personal knowledge and training, since Georgia law authorizes licensees to render environmental assessments.
B
Disclose known material facts, comply with applicable federal disclosure requirements such as lead-based paint rules, and refer the buyer to qualified environmental professionals for issues beyond the licensee's expertise.
C
Advise the buyer that environmental issues are outside the scope of any real estate transaction and that the licensee has no obligation to address them under Georgia law.
D
Direct the buyer to review publicly available FEMA maps independently and decline to discuss environmental matters further, since licensees are prohibited from commenting on environmental topics.

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