What should agents do when they observe red flags in a property?

Disclosing red flags to potential buyers is essential for several reasons. First and foremost, it aligns with the ethical obligations of real estate professionals to act honestly and transparently in their dealings. Agents have a duty to safeguard their clients' interests by providing all relevant information that may influence a buyer's decision. This transparency is crucial in building trust and maintaining a good reputation in the industry.

Additionally, many jurisdictions have legal requirements that mandate agents disclose material defects or issues that could affect the property's value or safety. Failing to disclose such information may not only harm the buyer but also expose the agent and their brokerage to legal liabilities.

By directly informing potential buyers about any observed red flags, agents ensure that buyers can make informed decisions about proceeding with the property purchase. This proactive approach not only protects the interests of the buyer but also mitigates the risk of future disputes or claims against the agent for non-disclosure.