A residential property seller provides a salesperson with a Property Disclosure Statement (PDS) that indicates the basement has never had water issues. However, the salesperson notices a faint water stain during a showing. What is the salesperson's ethical and legal obligation?

Question: A residential property seller provides a salesperson with a Property Disclosure Statement (PDS) that indicates the basement has never had water issues. However, the salesperson notices a faint water stain during a showing. What is the salesperson's ethical and legal obligation?

Answer options: ✅ To disclose the observed stain to potential buyers, regardless of the PDS.

• To rely solely on the PDS provided by the seller, as they are the primary source of information.
• To advise the seller to repaint the stain to avoid scaring potential buyers.
• To only disclose the stain if a buyer explicitly asks about water damage.

Correct answer: To disclose the observed stain to potential buyers, regardless of the PDS.

Explanation: A salesperson has a duty to discover and disclose all material facts known to them or which are discoverable through reasonable inquiry, even if contrary to a seller's disclosure. This is mandated by REBBA 2002, which emphasizes the salesperson's ethical duty to act in the best interests of a transparent transaction.