What must a real estate broker do regarding disclosure of property issues?

A real estate broker has a legal and ethical obligation to disclose known issues that may affect the value or desirability of a property to potential buyers. This is aligned with the principles of transparency and fairness in real estate transactions. Proper disclosure addresses any significant defects or concerns about the property, ensuring that buyers can make informed decisions.

When brokers disclose known issues, they help build trust in the client-broker relationship and minimize the risk of future legal disputes stemming from undisclosed defects. Transparent communication about property conditions is not only a requirement in Michigan real estate law, but it also upholds the broker’s responsibility to act in the best interest of their clients.

Failure to disclose known issues could lead to significant repercussions for the broker, including legal liability or loss of their real estate license. Therefore, the correct approach is for brokers to be proactive in disclosing any relevant property issues they are aware of, thus fulfilling their duty and protecting both themselves and their clients in the transaction process.