Are REALTORS® required to disclose prior flooding from a property condition to potential tenants?

When you’re marketing a property for lease that had previous flooding from a property condition, REALTORS® should consider the Code of Ethics.

Keep in mind that Article 2 says REALTORS® should avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. Article 12 says REALTORS® should be honest and truthful in their real estate communications and present a true picture in their advertising, marketing, and other representations.

If repairs have been made, the property condition has been resolved, and there are no other known issues from prior flooding on the property, there’s no legal obligation for you to disclose prior flooding from a property condition. If a prospective tenant asks questions about prior flooding, though, you as a REALTOR® should tell the truth.

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9 Responses to Are REALTORS® required to disclose prior flooding from a property condition to potential tenants?

  1. Maureen Boyd says:

    NOT DISCLOSING a risk associated with prior flooding is dishonest.

    Like

    • Kartaltepe, Texas LREB says:

      “A risk” — Who’s the authority on a risk? Are you the authority? Buyer might sue, then again Seller might sue, because agent disclosed a risk or rather “an alleged risk”. I would sue agent if I were the Seller and felt agent “disclosed false risks” and caused unwarranted damages. You wouldn’t want me as a Seller client. I would be the biggest risk to an agent.

      Like

  2. Tom Allen says:

    I was taught (and still believe) disclose, disclose, disclose! To leave this undisclosed is asking for trouble, and the agent who does so deserves what they get.

    Like

  3. Sam Ferreri says:

    I believe that if you don’t disclose AND advise to get flood insurance, you’re setting yourself up to be the next (very expensive) “test case” that will lead to a disclosure requirement.

    Like

  4. Rick Ebert says:

    Sometimes this is a tough business and this situation would be one of them. To inform the prospects of prior flooding without being asked to do so and without permission of your client is not in keeping with your obligation, your fiduciary responsibility to promote your clients bests interests.,

    Like

  5. Dinah Wicker says:

    As a Realtor, if you have prior knowledge of the property flooding then, if asked you should reveal that. The owner/seller cannot require you to not reveal that information. Always be honest.

    Like

  6. Stuart B Scholer says:

    Tell the truth… that’s easy… not much to discuss. If there is a “risk” or defect that could affect health or safety of a Tenant then the Listing Agent should disclose. If the Landlord can’t live with that then the Listing Agent should take a pass on the Listing. As for us Agents in Houston… the TAR- 1414 MUST be standard fare in ALL transactions. After all this IS Houston. Flooding anywhere and everywhere did not begin with Harvey. Harvey is now the new benchmark.

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  7. Denise McCalla Williams says:

    This is a mute point if the Owner is not honest with the Realtor. We can only disclose what we know.

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  8. Lois Myers says:

    I have always believed a Landlord should be required to fill out a Seller’s Disclosure (of sorts) for Tenants. It could be called the “Landlord’s Disclosure” ~ doesn’t really matter what it would be called. But when a Tenant rents a house from a Landlord, & he is paying for use of that property as if it were his own home, the Landlord SHOULD BE required to give full-disclosure to his Tenant on everything in that house! Perhaps TAR & TREC should change their rule/law on this. MUCH-needed reform here, to require that the Landlord give full-disclosure of everything in that house, just as if he were selling it!

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