Course: A real estate agent is showing a property that has a known material defect – a leaky roof that the seller has attempted to patch numerous times. What is the agent's responsibility? (EN)

Introduction: A Real Estate Agent's Duty of Disclosure and the Mitigation of Asymmetric Information in Property Transactions

1. The Legal and Ethical Basis of Disclosure: Delineating the legal standards for disclosing material defects, including the concepts of misrepresentation, concealment, and negligent misrepresentation. This will involve a review of relevant case law and statutory requirements.

2. Scope of the Agent’s Duty of Investigation: Examining the extent to which an agent is obligated to proactively investigate potential defects beyond what is readily apparent or disclosed by the seller. This analysis will address the agent’s reliance on seller disclosures and the potential for independent verification.

3. Practical Strategies for Disclosure: Presenting specific strategies for effectively disclosing the leaky roof and its repair history to potential buyers, including the use of written disclosures, visual documentation, and the recommendation of professional inspections.

4. Mitigating Liability Risks: Identifying actions agents can take to minimize their legal exposure, such as maintaining thorough documentation, seeking legal counsel, and ensuring full transparency throughout the transaction process.