9.1 Agents Visual Inspection and Material Facts

Company policy is for Associates to educate themselves and learn about all of the material facts and potential environmental hazards that could possibly affect a client or transaction and conduct a thorough Agent Visual Inspection and disclose the finding(s) to all parties involved.

The role of the real estate agent has changed. In the past it was truly a "buyers beware" marketplace. If a buyer had environmental concerns, the real estate industry did not address them. If the buyer wanted to inspect the property, the buyer was responsible if they failed to discover a material defect. The old "buyer beware" doctrine shielded sellers and licensees from liability for any defective property condition. Today, agents are responsible to visually inspect the property and assist buyers and sellers in discovering and disclosing ALL material facts that the investigation reveals.

When an agent does not follow this policy, cases may be brought against the licensee under the theory of fraud or negligence.

Fraud: Lawsuits against sellers and real estate agents because of fraud are based either upon the premise that liability should result from an affirmative or intentional misrepresentation or from an omission or nondisclosure of a fact.

Therefore, any lawsuit based upon a fraud theory must contain all of the following elements:

• Nondisclosure, by a broker, of facts involving environmental hazards that materially affect the value or desirability of the property.

• The broker had knowledge of the facts involving environmental hazards and the facts were beyond the reach of the buyer.

• The broker’s intent was to induce action by the buyer.

• Inducement of the buyer to act by reason of the nondisclosure.