A buyer, Mark, is interested in purchasing a residential property located at 123 Maple Street, Vancouver. Mark's licensee, Sarah, provides him with a Property Disclosure Statement (PDS) completed by the seller. The PDS indicates that there are no known issues with the drainage system. However, a neighbour mentions to Mark that the basement floods during heavy rain. What is Sarah's most appropriate action upon learning this new information?

Question: A buyer, Mark, is interested in purchasing a residential property located at 123 Maple Street, Vancouver. Mark's licensee, Sarah, provides him with a Property Disclosure Statement (PDS) completed by the seller. The PDS indicates that there are no known issues with the drainage system. However, a neighbour mentions to Mark that the basement floods during heavy rain. What is Sarah's most appropriate action upon learning this new information?

Answer options:

• Advise Mark to rely solely on the PDS as it is a legal document.
• Inform Mark that the information from the neighbour is hearsay and should be disregarded. ✅ Recommend that Mark conduct further due diligence, such as including a home inspection condition in his offer, specifically focusing on drainage.
• Contact the seller directly to demand an explanation for the discrepancy in the PDS.

Correct answer: Recommend that Mark conduct further due diligence, such as including a home inspection condition in his offer, specifically focusing on drainage.

Explanation: Licensees have a duty to act in the best interests of their clients and to advise them to seek independent advice or conduct further investigations when there are indications of potential issues that contradict disclosures. The PDS is a static document at the time it's signed, and any new information should prompt further due diligence.