BRRETA practice question 17 of 31 · Disclosure of property and neighborhood facts

Must an agent disclose a problem near the property?

A listing agent knows that a closed landfill half a mile from the listing vents gas that has forced nearby residents to install monitors. A reasonably diligent inspection of the neighborhood would not reveal the condition, and it cannot be found in reasonably available government records such as zoning maps, plats, flood maps, or tax maps.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources.

Does BRRETA require the listing agent to disclose it to buyers?

ANo, because BRRETA covers only the property itself
BYes, because it is an actually known adverse physical condition within one mile that a buyer could not reasonably find
COnly if the landfill is on an adjoining lot
DOnly if the buyer asks about the neighborhood

Pick an answer before you read on.

Answer: B

Yes, because it is an actually known adverse physical condition within one mile that a buyer could not reasonably find. A seller's broker must timely disclose material facts about existing adverse physical conditions within one mile of the property that the broker actually knows and that could not be discovered by a reasonably diligent inspection of the neighborhood or through reasonably available governmental records, such as zoning ordinances, plats, flood plain maps, and tax maps.

Why each choice is right or wrong

A. No, because BRRETA covers only the property itself
Section 10-6A-5 reaches certain existing adverse physical conditions in the neighborhood within one mile, as well as defects in the property itself.
B. Yes, because it is an actually known adverse physical condition within one mile that a buyer could not reasonably findCorrect answer
The facts meet each part of the rule: actual knowledge, an adverse physical condition, a location within one mile, and no reasonable discovery through inspection or available government records.
C. Only if the landfill is on an adjoining lot
The statute uses a one-mile boundary, not an adjoining-lot boundary. Half a mile is inside it even if the landfill does not touch the property.
D. Only if the buyer asks about the neighborhood
A covered neighborhood condition must be timely disclosed. The buyer does not have to ask about the landfill first.

The trap

The property line is not the limit of this duty. Georgia also covers specified conditions within one mile, subject to what a buyer could reasonably discover.

The Rule

Disclose a known adverse physical condition within one mile if reasonable inspection and available government records would not reveal it.

What would change the answer

If the condition appears in reasonably available government records, such as a flood plain map, the broker's duty does not reach it, because the buyer could have found it.
If the landfill were three miles away, it would fall outside the one-mile rule. The agent still could not give false information if asked.

Where the rule comes from

O.C.G.A. § 10-6A-5, Duties and responsibilities of broker engaged by seller. A seller's broker must perform the engagement, promote the seller's interests (including timely presenting all offers to and from the seller even when the property is under contract, though it need not seek more offers then unless the engagement says so), exercise reasonable skill and care, obey the law, keep requested confidences, and disclose to all parties actually known adverse material facts about the property's physical condition and conditions within one mile that a diligent inspection would not reveal.

This is an original teaching question written from the statute. It is not a PSI exam item, and it is not copied or reconstructed from one. On the exam, BRRETA sits inside the Georgia agency and listing content. The BRRETA guide covers the client and customer table and the dual and designated agency rules in one place.