Oregon 30-Hour Real Estate Law Practice Test

What should Jessie do upon noticing a puddle of water in the basement?

1. Ignore it and wait for the inspection report.

2. Inform the seller's agent and not disclose to her buyer.

3. Disclose the finding to her buyer immediately.

4. Ask the seller if the leak has been fixed.

The correct answer is: Disclose the finding to her buyer immediately.

When Jessie notices a puddle of water in the basement, the most responsible action is to disclose the finding to her buyer immediately. Transparency in real estate transactions is crucial, as buyers have the right to know about any potential issues that could affect their decision to proceed with the purchase or the property's value. By informing her buyer about the water puddle, Jessie is adhering to her ethical and legal obligations to keep the buyer informed about material facts that could impact their interests. This approach helps build trust between Jessie and her buyer while ensuring that the buyer can make an informed decision regarding the property. Failing to disclose this information could lead to potential liabilities later on if the buyer discovers the problem after the sale is complete, which could result in legal repercussions for Jessie as the agent. Therefore, immediate disclosure aligns with the best practices in real estate to protect both the buyer’s interests and the integrity of the transaction.