Alice is a buyer's agent and is showing a strata unit that appears to have an unauthorized renovation. The Property Disclosure Statement indicates no such renovations have occurred, and the seller's agent denies any knowledge. Alice's buyer client, Bob, wants to submit an offer but is concerned about the potential permit issues. What action is most appropriate for Alice?

Question: Alice is a buyer's agent and is showing a strata unit that appears to have an unauthorized renovation. The Property Disclosure Statement indicates no such renovations have occurred, and the seller's agent denies any knowledge. Alice's buyer client, Bob, wants to submit an offer but is concerned about the potential permit issues. What action is most appropriate for Alice?

Answer options:

• Alice should advise Bob to proceed with the offer and trust the PDS, as it is legally binding on the seller. ✅ Alice should inform Bob about the potential risk of unauthorized renovations and recommend that he include a subject condition for a professional building inspection and potentially a search of municipal records for permits.
• Alice must immediately report the seller and seller's agent to the BCFSA for misrepresentation, as she suspects an unauthorized renovation.
• Alice should disregard her suspicions unless Bob explicitly asks her to investigate, as it is not her duty to contradict the PDS.

Correct answer: Alice should inform Bob about the potential risk of unauthorized renovations and recommend that he include a subject condition for a professional building inspection and potentially a search of municipal records for permits.

Explanation: BCFSA Rule 3-3(1)(j) states that a licensee must advise a client to seek independent professional advice on matters outside the licensee's expertise. Furthermore, acting in a client's best interest requires advising of potential material defects and risks.