A New York real estate salesperson is showing a property to a prospective buyer who expresses concerns about a visible crack in the foundation. The seller previously told the salesperson that a structural engineer inspected it and declared it 'cosmetic and non-structural.' What is the salesperson's primary responsibility regarding this information?
- AAdvise the buyer to hire their own structural engineer, without mentioning the seller's information.
- BDownplay the crack's significance, reassuring the buyer it's 'nothing serious.'
- CInform the buyer about the seller's statement and offer to provide the engineer's report if available.
- DState that the seller is not required to disclose cosmetic defects.
Show answer & explanationAnswer & explanation
Correct answer: C. Inform the buyer about the seller's statement and offer to provide the engineer's report if available.
A salesperson has a duty to disclose material facts. While the seller's statement suggests it's non-material, the crack is visible and causes concern for the buyer. The most transparent and responsible action is to convey the seller's information and, importantly, offer the supporting engineer's report, allowing the buyer to make an informed decision.
Why the other options are wrong
- A. While advising the buyer to get their own inspection is good practice, withholding the seller's existing information is not transparent.
- B. Downplaying the issue without providing substantiating evidence could be seen as misrepresentation or failing to act with honesty.
- D. This may be true for non-material defects, but it avoids addressing the buyer's specific concern with available information.
Disclosure of Known Defects (NY)
New York real estate licensees must disclose known material defects and, when a buyer expresses concern about a visible issue, should provide any relevant information from the seller, including professional assessments.
- Material defects must be disclosed.
- Even for non-material, transparency is key when buyer expresses concern.
- Provide available supporting documentation.
Memory trick: Defect Revealed? Share the Story, then let them Explore it.