Article 2 Suggested Time: 10 minutes Start time: __________ End time: __________ Article 2 might be called the “disclosure” article. Note that the first bullet point talks about avoiding exaggeration, misrepresentation and concealment of pertinent facts about the property OR the transaction. In other words, Article 2 requires more than simply the disclosure of property defects.
The second bullet point should be used to discuss the fact that REALTORS are not required to be “experts” in every possible aspect of real estate transactions. For example, Article 2 makes it clear that REALTORS may not be home inspectors, professional engineers, architects, accountants, attorneys or the like. These areas would generally be considered to be outside the scope of a typical real estate licensee’s expertise and not required by the licensing statute. However, you should also note that REALTORS have an obligation to be aware of conditions and matters which a reasonably knowledgeable real estate licensee in the state or locality would know. In other words, a REALTOR cannot ignore a condition of which he or she is aware simply because the REALTOR believes that a home inspector will also note the condition. REALTORS should make the appropriate disclosures to the appropriate parties of the information which the REALTOR is aware at the time. Note also that Article 2 does not require the discovery of “latent” defects. You should mention to the participants that a working synonym of “latent” is “hidden.”
Case Study – Article 2 Suggested Time: 15 minutes Start time: __________ End time: __________