A buyer's representative discovers compelling evidence, through their own due diligence, that a property their client is interested in, located next to a newly approved municipal light rail transit (LRT) line, is projected to experience significant noise pollution that was not disclosed by the seller's brokerage. The buyer has already expressed eagerness to purchase due to the LRT's proximity. What is the representative's primary ethical obligation in this situation?

Question: A buyer's representative discovers compelling evidence, through their own due diligence, that a property their client is interested in, located next to a newly approved municipal light rail transit (LRT) line, is projected to experience significant noise pollution that was not disclosed by the seller's brokerage. The buyer has already expressed eagerness to purchase due to the LRT's proximity. What is the representative's primary ethical obligation in this situation?

Answer options: ✅ Disclose the potential noise pollution to the buyer immediately and suggest a sound assessment, even if it might deter the sale.

• Advise the buyer to conduct their own independent research into potential nuisances before making an offer.
• Prioritize the buyer's expressed eagerness and allow them to proceed, assuming they will conduct their own research.
• Inform the seller's brokerage of the known issue and request that they update their property disclosure statement or listing.

Correct answer: Disclose the potential noise pollution to the buyer immediately and suggest a sound assessment, even if it might deter the sale.

Explanation: Registrants have an ethical obligation under Section 21 of O. Reg. 580/05 (Code of Ethics) to discover and disclose to their client all material facts concerning the property that are known to the registrant. Potential significant noise pollution from a new LRT line would constitute a material fact.