A seller in St. Mary's County is listing a waterfront property located within the Chesapeake Bay Critical Area. The property has an existing dock and a small shed that were built without permits. The listing agent, Carol, is aware of these unpermitted structures. Which of the following best describes Carol's obligation?
Correct Answer
A) Carol must disclose the unpermitted structures to prospective buyers because they represent a material fact that could affect the property's value and legal compliance status.
Unpermitted structures within the Chesapeake Bay Critical Area are a material fact because they could expose the property owner to enforcement actions, fines, and mandatory removal orders under both Critical Area regulations and local permitting requirements. Carol, as the listing agent, has a duty under the Maryland Real Estate Brokers Act to disclose known material facts to prospective buyers. The seller's instruction not to disclose does not override Carol's legal and ethical disclosure obligations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
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