Houtan HormozianExpert on Real Estate, Finance and PropTech

Real Estate Quiz Would YOU Disclose This to Buyers? Test Your Ethics!

11 Jun 2025 · 1 min

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0:54

In this short video, the presenter poses a multiple‑choice ethics quiz for real‑estate professionals: whether past flood damage on a listed home must be disclosed to potential buyers. The correct answer (B) is explained: disclosure of material facts, such as flood history, is both a legal and ethical requirement because it influences buyer decisions, safety, insurance, and property value. The speaker warns that failing to disclose can result in lawsuits, license loss, and reputational harm, emphasizing that transparency protects both the agent and client. The video ends with a typical call to action, urging viewers to like, tag a friend, and contact the presenter via the website or direct message.

Chapters

Question of the day: The home you listed for sale has past flood damage. Must this information be disclosed? A. Say nothing about it. B. Yes, disclose it to all potential buyers. C. Let the buyer find out. D. Avoid the topic. The answer is letter B. As a real estate professional, you're legally and ethically obligated to disclose material facts, Anything that could affect a buyer's decision to purchase the property. Past flood damage is a significant issue that could impact future safety, insurance, and property value. Failing to disclose it could lead to lawsuits, loss of your license, or damaged reputation. Full transparency protects both you and your client. Found this helpful? Please like our post and tag a friend. Contact us through our website or message us right here.