Question 96

The listing agent should question the seller as to any known defects.

In an 'as is' property sale, the listing agent is responsible for gathering all relevant information about the property. This includes questioning the seller about any known defects to ensure that potential buyers are adequately informed.

A) assume that the owner will accept a relatively low price for the property.

Assuming that the owner will accept a low price is incorrect as the pricing strategy should be based on the market value and condition of the property, not merely on the 'as is' status. This choice does not address the necessary due diligence required by the listing agent in such sales.

B) conclude that if the buyer later discovers defects that were not disclosed the listing agent is relieved of any responsibility.

This option is misleading. While properties sold 'as is' may limit the seller's liability for undisclosed defects, the listing agent still has a duty to disclose known issues and cannot simply absolve themselves of responsibility for not investigating potential defects.

C) question the seller as to any known defects.

This is the correct approach, as it allows the agent to gather pertinent information that can be disclosed to potential buyers. This step is crucial in ensuring transparency and protecting both the seller's and buyer's interests in the transaction.

D) assume that the house is a 'fixer-upper.'

While a property listed 'as is' may often be a fixer-upper, the agent should not make assumptions without direct communication with the seller. The condition of the property can vary greatly, and assumptions could lead to misinformation and potential liability issues.

Conclusion

Questioning the seller about known defects is essential for the listing agent to fulfill their responsibilities and ensure that buyers are fully informed. This proactive approach not only protects the agent's professional integrity but also fosters trust and transparency in the real estate transaction process. All other options either misrepresent the agent's responsibilities or rely on assumptions that could lead to misunderstandings.