What must a real estate professional do if they encounter a material defect in a property?

A real estate professional has an ethical and legal duty to disclose any material defects encountered in a property to potential buyers. A material defect refers to a significant issue that affects the value, safety, or desirability of the property. This obligation is crucial for maintaining transparency in the transaction and ensuring that buyers can make informed decisions. Not disclosing such defects can lead to potential legal ramifications for the agent, including liability for damages or losses incurred by the buyer after the sale.

Transparent communication about the condition of a property fosters trust and upholds the integrity of the real estate profession. By informing potential buyers of any material defects, the professional not only protects the interests of the buyer but also safeguards their reputation and complies with the fiduciary responsibilities owed to both the buyer and the seller. Thus, disclosing material defects is not just a best practice; it is a key component of ethical real estate dealings.