Sandra is selling her home in Shreveport. Her listing agent, Paul, discovers during the listing appointment that Sandra has known about a significant foundation crack for two years but did not repair it and did not include it on the Property Disclosure Document she already signed. Paul is preparing to present the home to buyers. What is Paul's most appropriate course of action under Louisiana law?
Correct Answer
A) Paul should advise Sandra to amend the Property Disclosure Document to include the known foundation defect before marketing the property
Under La. R.S. 9:3196 et seq. and LREC regulations, a listing agent has an obligation to ensure seller compliance with the Louisiana Residential Property Disclosure Act. When Paul learns of a known material defect that was omitted from the disclosure document, his proper course of action is to advise Sandra to amend the document to accurately reflect the known condition before marketing. Agents also have independent disclosure duties regarding material facts under LREC rules.
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Related Topics & Key Terms
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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.
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The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
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