Question

Seller Samoan lists his home with Agent Angela. There is a contract presented and accepted, but the transaction falls through during the inspection phase when it is found that the furnace has a crack in the heat exchanger and is unsafe. Samoan tells Agent Angela to put it back on the market, but not to reveal the problem with the furnace. What is Angela's proper course of action?

a) Do as Samoan requests; this information is confidential.
b) Do as Samoan requests, but secretly tell other agents about the problem.
c) Explain the consequences to Samoan and reveal that she has an obligation to disclose.
d) Explain the consequences to Samoan and then report him to DFPR.

Answer 1

Agent Angela's proper course of action is to explain the consequences to Samoan and reveal that she has an obligation to disclose.

Step-by-step explanation:

Agent Angela's proper course of action is option c) Explain the consequences to Samoan and reveal that she has an obligation to disclose. As a real estate agent, Angela has a legal and ethical responsibility to disclose any known defects or issues with a property to potential buyers. Failing to disclose the problem with the furnace could lead to legal consequences for Angela and harm the reputation of the real estate industry.