What action should a broker take upon discovering a material defect?

Upon discovering a material defect, a broker has a responsibility to notify the appropriate parties. This action is essential because a material defect can significantly impact the value and desirability of a property. Brokers must adhere to ethical standards and legal obligations, which include disclosing any known issues that could affect a buyer's decision. By notifying relevant parties, such as the seller, potential buyers, or even regulatory authorities, the broker ensures transparency and upholds the integrity of the real estate transaction process. This protective measure helps to mitigate potential liability and fosters trust in the broker-client relationship.

In contrast, repairing the defect themselves may not be appropriate unless they are qualified to do so and have permission to take such action. Keeping the defect confidential contradicts the broker's duty to disclose material information, while ignoring the defect entirely neglects their responsibilities and can lead to serious repercussions later.