Broker Danielle represents the seller of a home in Baton Rouge. During the listing period, Danielle learns from the seller that the property's roof was repaired after a hail storm two years ago but the repair was done without a permit. The seller instructs Danielle not to mention the unpermitted repair to any buyers. What is Danielle's correct course of action under Louisiana law?
Correct Answer
B) Disclose the unpermitted repair to prospective buyers because it is an adverse material fact she is required to disclose despite the seller's instruction
Under Louisiana agency law and the Louisiana Residential Property Disclosure Act (La. R.S. 9:3196 et seq.), a licensee has an affirmative duty to disclose known adverse material facts about a property that could affect a buyer's decision, even if the seller instructs otherwise. An unpermitted roof repair is an adverse material fact — it may affect the property's insurability, safety, and legal compliance. The duty of confidentiality protects client personal information, not instructions to conceal material defects. Danielle must disclose this fact and may need to withdraw from the listing if the seller refuses to permit disclosure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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