What action should a broker take upon discovering defects in a property?

A broker has a legal and ethical obligation to disclose defects in a property. This action is crucial for maintaining transparency and trust in a real estate transaction. By disclosing defects, the broker ensures that all parties have the necessary information to make informed decisions. This aligns with the principles of fairness and honesty in real estate transactions, and it helps to protect the interests of both the buyer and the seller.

Disclosing defects as required by law is essential not only for legal compliance but also for fostering a positive reputation in the real estate community. It allows buyers to assess the risks associated with the property and negotiate repairs or price adjustments as needed. This practice safeguards against potential legal repercussions that can arise from failing to disclose known defects.

In contrast, actions like concealing defects undermine the integrity of the transaction and can lead to severe legal consequences for the broker. Notifying the buyer's agent is certainly a part of the communication process, but it does not replace the broker's primary responsibility of direct disclosure to the parties involved. Simply disclosing defects only when asked directly by the buyer may not meet the legal requirements for disclosure, which typically mandate proactive communication about known property issues. Overall, the obligation to disclose ensures a fair and informed real estate transaction for everyone involved.