What must a licensee disclose if listing a property in a known flood plain, despite the seller's denial?

When a licensee is listing a property in a known flood plain, they have a professional and ethical obligation to ensure that all relevant facts regarding the property are disclosed. Even if the seller denies that the property is in a flood plain, the licensee must inform the seller of their responsibility to disclose this essential information to potential buyers. This is crucial because failure to disclose such information can lead to legal consequences and liability for both the seller and the licensee.

Disclosing the property’s flood plain status is important for protecting the interests of potential buyers, who should be made aware of any risks associated with flooding and insurance considerations. By ensuring that the seller understands their obligation to disclose this information, the licensee helps facilitate a more transparent transaction and contributes to informed decision-making for all parties involved.

In the context of real estate practices, ensuring proper communication between all parties, especially regarding significant issues like being in a flood plain, is a key responsibility of real estate professionals. This proactive approach supports ethical practice and compliance with legal requirements in real estate transactions.