A registrant, acting as a buyer's agent, discovers a material defect in a property during a showing that the seller's agent appears unaware of. Which of the following actions is MOST consistent with the Code of Ethics under REBBA (now TRESA)?

Question: A registrant, acting as a buyer's agent, discovers a material defect in a property during a showing that the seller's agent appears unaware of. Which of the following actions is MOST consistent with the Code of Ethics under REBBA (now TRESA)?

Answer options: ✅ The registrant must disclose the material defect to their buyer client, as per the duty to protect and promote the best interests of their client.

• The registrant should inform the seller's agent about the defect, as registrants must treat all parties fairly.
• The registrant is not obligated to disclose the defect, as it would be disclosing confidential information found on another party's property.
• The registrant should advise their client to make a low offer based on the defect, without explicitly detailing the defect to the seller.

Correct answer: The registrant must disclose the material defect to their buyer client, as per the duty to protect and promote the best interests of their client.

Explanation: Registrants have a primary duty to protect and promote the best interests of their client. Under TRESA, registrants must disclose all material facts known to them that are relevant to the transaction to their client. Withholding such information would be a breach of this duty.