A licensee lists a home for sale. The licensee knows that a registered sex offender convicted of child molestation lives two doors away. What must the licensee do if an unrepresented buyer would like to purchase the home

While referring the buyer to another agent is an option, it is not a requirement. The licensee is not obligated to defer the buyer to another agent, especially if the buyer wishes to proceed with the purchase directly. This choice does not fulfill the duty of presenting the offer to the seller.

Offering a discount is not a standard practice and is not required in this situation. The licensee must present the offer as it stands without altering the terms based on the buyer's representation status. This choice is inappropriate and does not address the essential duty to present offers.

While there may be ethical and legal considerations regarding disclosing such information, the immediate duty in this scenario is to present the offer to the seller. Whether or not to disclose the sex offender's presence depends on local laws and regulations, but it does not replace the fundamental obligation of presenting the buyer's offer.