If a broker is aware of potential environmental concerns near a listing, what must they do?

In real estate transactions, brokers have a duty to disclose any material facts that could influence a buyer's decision. Environmental concerns can significantly affect the desirability and value of a property. The correct response highlights the broker's responsibility to disclose potential environmental issues, even if they are located outside the property boundaries or are not initially visible to the buyer.

The rationale behind this requirement is grounded in the idea that even potential environmental hazards can have a profound impact on the property’s value and the buyer's long-term enjoyment of it. By ensuring that buyers are informed about these concerns, brokers help promote transparency and support informed decision-making. This practice not only fosters trust in the broker-client relationship but also helps mitigate potential future liabilities for the broker should undisclosed issues arise after the sale. Therefore, disclosing such information is vital for ethical real estate practice and legal compliance.