David is a licensed sales agent in Utah representing the seller of a residential property. During a walkthrough, David personally observes that the basement has visible water staining on the walls, though the seller's completed Seller's Property Condition Disclosure form states there are no known moisture or water intrusion issues. The seller insists the staining is old and harmless. What is David's most appropriate course of action under Utah law?
Correct Answer
D) Disclose his personal observation of the water staining to prospective buyers as a known material fact, independent of the seller's disclosure form
Under Utah Administrative Code R162-2f and the general duties of a licensee, a real estate agent has an independent duty to disclose known material facts to all parties in a transaction, regardless of what the seller's disclosure form states. David personally observed visible water staining, which constitutes a known material fact. He must disclose this observation to prospective buyers even if the seller disputes its significance. The agent's duty to disclose known material facts is separate from and in addition to the seller's disclosure obligations.
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Related Concepts
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
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