Final answer:
If a seller refuses to disclose known material defects, the broker should either refuse the listing or seek legal advice. It's important for the broker to act ethically and within legal bounds to avoid liability.
Step-by-step explanation:
If a seller will not complete a Seller's Property Disclosure and the broker suspects there are material defects in the property, it is important for the broker to navigate the situation ethically and legally. The broker has a duty to avoid misrepresenting or omitting material facts about the property. While the broker is not responsible for the seller's refusal, they must consider their own obligations. There are several courses of action the broker might take:
- The broker should refuse the listing if they know of defects that the seller is not willing to disclose, to maintain ethical standards and avoid potential legal liabilities.
- Before deciding on a course of action, the broker should consult with an attorney to understand the legal ramifications and ensure they are following state and federal disclosure laws.
Taking the listing and filling out the disclosure without the seller's accurate input would be problematic and potentially unlawful. Therefore, the best practice is to refuse the listing or seek legal advice to navigate through the situation carefully.