If a broker informs a party about a material defect in a property, what must they do next?

When a broker discovers a material defect in a property, they have a legal and ethical obligation to disclose that information to all parties involved in the transaction. This requirement is grounded in the principles of transparency and fair dealing within real estate transactions. By informing every party, including both the buyer and the seller, the broker ensures that all parties are fully aware of the condition of the property before proceeding. This disclosure helps to prevent potential disputes or legal actions that may arise from undisclosed defects.

In real estate, material defects are significant issues that could affect a property's value or desirability, such as structural problems or violations of safety codes. The broker's duty to disclose these defects is paramount to foster trust and maintain the integrity of the transaction process.

Not disclosing the defect could lead to serious repercussions for the broker, including legal liability, loss of their license, and damage to their reputation. Therefore, it is essential that the broker takes the responsible step of communicating this critical information to everyone involved.