How should brokers handle known defects in properties they represent?

Brokers are required to disclose all known defects in properties they represent to potential buyers. This obligation is rooted in ethical practices and legal standards designed to protect consumers and ensure transparency in real estate transactions. By fully disclosing known defects, brokers help buyers make informed decisions, which is crucial for maintaining trust in the real estate profession.

This practice aligns with the principles of full disclosure, where brokers must provide all material facts that could influence a buyer's decision. Failing to disclose such defects can lead to legal repercussions for the broker, including lawsuits and potential loss of their license.

In comparison, the other approaches undermine the integrity of the brokerage and violate ethical standards. Keeping information to themselves or only disclosing defects when asked does not fulfill the broker's responsibility to the buyer. Attempts to disguise defects before showings can result in significant legal liabilities for misrepresentation. Therefore, effective and ethical real estate practice dictates that all known defects must be transparently shared with potential buyers.