The Water Stains, the Registry Question, and the Social Media Post
Broker Sam lists a 1970s ranch. The seller mentions in passing that the basement took on water twice during heavy storms, that the roof “probably needs replacing in a year or two,” and that a prior owner used the detached garage for auto painting. The seller says, “Don’t put that in writing-buyers overreact.” A buyer with two young children asks Sam, “Is this a safe neighborhood? Are there any registered offenders nearby?” and “Are there a lot of families here?” Sam’s unlicensed marketing assistant has been posting on social media that the home is “perfect for a young family” and “walking distance to the elementary school.”
1. What must Sam disclose, and how should he handle the seller’s instruction not to put it in writing?
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Sam must treat the water intrusion, the roof’s likely replacement, and the auto-painting use as potentially material. A licensee may not conceal known material defects, and a seller’s instruction not to disclose does not override that duty. The auto-painting use may also signal possible hazardous materials or environmental contamination, which should be investigated rather than dismissed.
Sam should:
- Advise the seller, in writing, that these items need to be disclosed on the seller’s disclosure form and in response to direct buyer questions.
- Recommend inspections by a qualified roofer, waterproofing contractor, and-if contamination is suspected-an environmental professional.
- If the seller refuses to disclose a known material defect, Sam should escalate to the broker and consider whether the brokerage can continue representing the seller without misleading buyers.
- Document the advice and the seller’s response.
2. How should Sam answer the buyer’s questions about safety, registered offenders, and families?
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Sam should avoid characterizing the neighborhood in terms of protected classes, including familial status. Answering “yes, lots of families” can be steering, and answering “no offenders” can be an inaccurate safety representation.
A safer response:
- Provide objective, public information and direct the buyer to official crime-statistics and offender-registry resources; do not make personal assurances about safety.
- Say that Sam does not maintain offender information and cannot verify it.
- Treat all buyers the same and avoid describing the area as “family friendly” or “not family friendly.”
- Let the buyer draw their own conclusions from public records and their own visit to the area.
3. What are the risks in the assistant’s social media posts, and what corrective steps should Sam take?
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The posts create two problems. First, an unlicensed assistant may perform marketing tasks only under the broker’s supervision, and advertising must comply with license law, including identifying the brokerage. Second, “perfect for a young family” suggests a preference based on familial status, which is a fair-housing risk. “Walking distance to the elementary school” is less problematic if factually accurate, but it should not be used to steer families.
Sam should have the posts removed or corrected, document the correction, review the assistant’s social media role, and provide fair-housing and advertising training. The broker remains responsible for supervising advertising and staff.