A real estate professional is acting as a transaction facilitator for a buyer client. The buyer identifies a property listed for $500,000 and asks the professional to draft an offer. The professional observes that the property taxes have significantly increased in the last year due to a reassessment, which could impact the buyer's carrying costs. What is the real estate professional's responsibility regarding this information?

Question: A real estate professional is acting as a transaction facilitator for a buyer client. The buyer identifies a property listed for $500,000 and asks the professional to draft an offer. The professional observes that the property taxes have significantly increased in the last year due to a reassessment, which could impact the buyer's carrying costs. What is the real estate professional's responsibility regarding this information?

Answer options: ✅ They must advise the buyer to verify the current property taxes as part of their due diligence

• They are not obligated to provide any advice or analysis in a transaction brokerage role, only to facilitate paperwork
• They must directly tell the seller's agent about the tax increase to ensure transparency
• They should ignore the information as it relates to property details, not the transaction process itself

Correct answer: They must advise the buyer to verify the current property taxes as part of their due diligence

Explanation: Even in a transaction brokerage relationship, a real estate professional has a duty to act with reasonable care and skill. Advising a buyer to verify material facts like property taxes, which can affect their decision, falls under this responsibility, guiding them to do their own due diligence, as stated in the RECA Rules regarding competencies.