Difficulty: Medium

Average Score: 50%

If an owner wants to list a property for sale 'as is,' the listing agent should

Rationale

Question the seller as to any known defects.

It is crucial for the listing agent to inquire about any known defects when a property is being sold 'as is.' This ensures that the agent can provide accurate information to potential buyers and helps protect the seller from future liability regarding undisclosed issues.

A (assume that the owner will accept a relatively low price for the property.) YOUR ANSWER

This assumption may not be valid, as the seller's motivations for selling 'as is' can vary widely. Pricing decisions should be based on market analysis and the condition of the property rather than presumptions about the seller’s willingness to accept a low offer.

B (conclude that if the buyer later discovers defects that were not disclosed the listing agent is relieved of any responsibility.) YOUR ANSWER

This statement is misleading; the listing agent may still have a duty to disclose known defects even if the property is sold 'as is.' Failing to disclose known issues can lead to legal repercussions for the agent and the seller, regardless of the sale conditions.

D (assume the house is a 'fixer-upper.') YOUR ANSWER

While many 'as is' properties may require repairs, not all of them are necessarily fixer-uppers. Each property should be evaluated on its individual merits, and the agent should verify the condition of the property through direct communication with the seller regarding its state.

Conclusion

In summary, when listing a property 'as is,' the most responsible action for the listing agent is to question the seller about any known defects. This approach not only aids in providing potential buyers with accurate information but also minimizes risks of future liability for the seller and the agent. Understanding the property’s condition is essential for fair pricing and ethical marketing.

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