Hawaii Pre-Licensing National Practice Exam

If homeowners inform their salesperson about a leaky garage roof but ask them not to disclose it to potential buyers, what must the salesperson do?

1. Ignore the sellers' request

2. Advise the sellers of their obligation to disclose

3. Let the buyers decide on their own

4. Disclose the issue only if asked

The correct answer is: Advise the sellers of their obligation to disclose

The correct choice emphasizes the salesperson’s responsibility to inform their clients about legal obligations regarding property disclosures. When homeowners disclose a known defect, such as a leaky garage roof, to their salesperson, the salesperson must inform the homeowners that they are legally required to disclose this defect to potential buyers, regardless of the homeowners' wishes. Real estate professionals are typically bound by laws and ethical guidelines that mandate transparency about property conditions. Failing to disclose such known issues can not only lead to legal consequences for the homeowners but also could expose the salesperson and their brokerage to liability for misrepresentation. In many jurisdictions, sellers have a duty to disclose defects that they know about, and salespersons play a crucial role in ensuring that sellers are aware of these responsibilities. This ensures the integrity of the transaction and protects all parties involved, including the future buyers who deserve full knowledge of conditions affecting the property. Thus, the salesperson's obligation to advise the sellers of their duty to disclose is not just a matter of professional ethics but also a legal requirement in many cases.