Sarah, a licensed associate broker, is representing the seller of a charming heritage home in Victoria. The seller provides Sarah with a Property Disclosure Statement (PDS) indicating no known issues with the foundation. However, while showing the property, Sarah notices a significant crack in the basement wall that appears to be recent and structural. What is Sarah's most appropriate action?

Question: Sarah, a licensed associate broker, is representing the seller of a charming heritage home in Victoria. The seller provides Sarah with a Property Disclosure Statement (PDS) indicating no known issues with the foundation. However, while showing the property, Sarah notices a significant crack in the basement wall that appears to be recent and structural. What is Sarah's most appropriate action?

Answer options: ✅ She must advise the seller to update the PDS to reflect the crack and ensure all prospective buyers are informed.

• She should point out the crack to potential buyers but assure them the PDS states no known foundation issues.
• She must ignore the crack as her duty is to rely solely on the information provided by the seller in the PDS.
• She should suggest the seller patch the crack before further showings to avoid alarming buyers.

Correct answer: She must advise the seller to update the PDS to reflect the crack and ensure all prospective buyers are informed.

Explanation: Licensees have a duty to act honestly and with reasonable care and skill. If a licensee becomes aware of a material latent defect or information contrary to the PDS, they must disclose it and advise the client to update the PDS, as per BCFSA Rules and the Real Estate Services Act.