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BC Real Estate Trading Services Licensing Exam Practice · Question

A buyer's agent, Sarah, discovers a major structural defect during a showing of 123 Maple Street, Vancouver. The seller's agent, Mark, is unaware of this defect, and it is not mentioned in the Property Disclosure Statement. What is Sarah's primary obligation regarding this discovery?

Under the BCFSA Rules, a licensee must act in the best interests of their client. Sarah's primary obligation is to inform her buyer client of any material laten

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Question: A buyer's agent, Sarah, discovers a major structural defect during a showing of 123 Maple Street, Vancouver. The seller's agent, Mark, is unaware of this defect, and it is not mentioned in the Property Disclosure Statement. What is Sarah's primary obligation regarding this discovery?

Answer options:

  • Confess the defect to the seller's agent immediately to ensure transparency.
  • Advise her buyer client to include a 'subject to inspection' clause in their offer without revealing the defect directly to the seller or seller's agent.
  • Keep the information confidential from all parties, including her buyer, as it could weaken her client's negotiating position. ✅ Inform her buyer client of the defect and advise them on how this impacts their interest in the property.

Correct answer: Inform her buyer client of the defect and advise them on how this impacts their interest in the property.

Explanation: Under the BCFSA Rules, a licensee must act in the best interests of their client. Sarah's primary obligation is to inform her buyer client of any material latent defect she becomes aware of and advise them accordingly.

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