Upon finding a defect, what should a licensee primarily prioritize?

In real estate transactions, the primary responsibility of a licensee, or real estate agent, is to act in the best interests of their principal, which is typically the client they represent, whether it be the seller or the buyer. When a defect is identified in a property, the licensee must prioritize the protection of their principal's interests.

This involves ensuring that the principal is fully informed about the defect and its implications. The licensee should guide the principal on how to address the defect, whether that means negotiating repairs, price adjustments, or providing disclosures to potential buyers. By doing so, the licensee not only fulfills their ethical and legal obligations but also helps maintain the trust and confidence of their clients.

In contrast, other priorities such as maximizing the sale price or completing the sale quickly may conflict with the duty to disclose defects, which could lead to future legal issues for the agent or the principal. Prioritizing the elimination of liability for the broker may also lead to actions that are not in the best interest of the principal, such as withholding important information. Thus, safeguarding the client’s interests stands as the most ethical and professional practice in real estate transactions.