An associate, acting as a sole agent for a buyer, discovers that a property listed by another brokerage has significant flood damage not readily apparent. The seller and their agent are unaware of the full extent. To best serve their client, the buyer's agent should:

Question: An associate, acting as a sole agent for a buyer, discovers that a property listed by another brokerage has significant flood damage not readily apparent. The seller and their agent are unaware of the full extent. To best serve their client, the buyer's agent should:

Answer options: ✅ Advise their buyer client immediately of the perceived issue and recommend a comprehensive inspection.

• Keep the information confidential from the seller and their agent to gain a negotiation advantage for their client.
• Only disclose the information if specifically asked by their buyer client.
• Report the issue directly to RECA as a non-disclosure from the seller's agent.

Correct answer: Advise their buyer client immediately of the perceived issue and recommend a comprehensive inspection.

Explanation: The fiduciary duty of full disclosure and reasonable care and skill dictates that the buyer's agent must inform their client about any material facts discovered that could affect the client's decision, and recommend further due diligence.