Kovats Real Estate School Practice Test

What is a salesperson's responsibility when aware of a latent defect in a building they have listed for sale?

1. Ignore it if the seller does

2. Disclose it to the buyer

3. Fix the defect before selling

4. Only disclose if asked by the buyer

The correct answer is: Disclose it to the buyer

A salesperson is obligated to disclose any latent defects in a property they have listed for sale because it directly impacts the buyer's decision-making process. A latent defect refers to a fault that is not immediately apparent and would not be discovered upon ordinary inspection. The responsibility to disclose such defects stems from the ethical obligation of the salesperson to act in the best interest of the buyer and ensure that they are fully informed about the property. This requirement aligns with the principles of transparency and fairness in real estate transactions, helping to protect buyers from unforeseen issues that could lead to financial loss or safety concerns after purchase. Disclosing latent defects is also legally significant, as failure to do so could result in potential liability for the salesperson and their brokerage. This duty emphasizes the importance of honesty and integrity in the real estate profession, fostering trust between the parties involved in the transaction.