Broker Chen represents seller Williams in the sale of a residential property in Norman, Oklahoma. Williams completes the Property Condition Disclosure Statement but deliberately leaves blank the section asking about known roof leaks, even though Williams told Broker Chen about two prior roof leaks. Broker Chen submits the incomplete disclosure to the buyer without flagging the omission. Under Oklahoma law and OREC rules, which statement best describes Broker Chen's exposure?
Correct Answer
B) Broker Chen may face OREC disciplinary action for failing to disclose a known material fact to the buyer
Under Oklahoma Real Estate License Code (Title 59 O.S. § 858-354) and OREC rules, a licensed broker has an independent duty to disclose known material facts to all parties in a transaction, regardless of what the seller includes or omits on the Property Condition Disclosure Statement. Because Broker Chen had actual knowledge of the prior roof leaks from Williams' own statements, Chen's failure to disclose this material fact to the buyer exposes Chen to OREC disciplinary action, including possible license suspension or revocation.
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Related Topics & Key Terms
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Related Concepts
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.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
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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