What must a broker do if a property is listed without proper disclosure of known defects?

The correct action for a broker in this situation is to update the listing with full disclosure. This is essential to ensure transparency and maintain ethical standards in real estate transactions. Brokers have a legal and professional responsibility to disclose any known defects of a property to prospective buyers. Failing to do so can lead to potential legal repercussions, including lawsuits for misrepresentation or fraud.

Updating the listing with full disclosure not only protects the broker from liability but also fosters trust with potential buyers. Transparency is crucial in real estate transactions, as buyers need to make informed decisions about their purchases. By addressing known defects openly, the broker upholds their role as a reliable intermediary and aligns with the best practices of fair dealing in real estate.

Other options, such as proceeding with the sale without regard for the issues or withdrawing the listing without consulting the seller, may not adequately address the problem of undisclosed defects and could lead to legal issues or dissatisfaction among all parties involved. Consulting with the seller might seem like an approach, but it does not fulfill the obligation to disclose known defects to potential buyers.