What should an agent do if they discover roof damage during a walk-through inspection of a bank-owned home?

When an agent discovers roof damage during a walk-through inspection of a bank-owned home, it is crucial to adhere to ethical standards and legal obligations regarding full disclosure. Disclosing the issue to the buyer ensures that they are fully informed about the condition of the property they are interested in. This transparency is essential for maintaining trust and helping the buyer make an informed decision about their purchase.

Once the buyer is aware of the damage, it is important for the agent to inform the listing broker as well. This keeps all parties involved in the transaction aware of the property's status and allows the bank (as the seller) to take appropriate action regarding the repair, if necessary, or adjust the terms of the sale.

Being upfront about the roof damage not only follows best practices but also mitigates potential legal issues for the agent, as failure to disclose known defects could lead to claims of misrepresentation or negligence. This option aligns with the principles of professionalism and integrity within real estate transactions.