Agency
A Louisiana licensee who is representing a buyer notices that the seller has painted over a water stain in the basement. The agent should:
AIgnore it since it is the seller's responsibility to disclose
BBring it to the buyer's attention and recommend further investigation for potential water intrusion✓ Correct
CReport the seller directly to the LREC
DOnly mention it if the buyer asks about water damage
Explanation
A buyer's agent who notices signs of potential material defects — such as freshly painted areas that may hide water damage — has a duty to inform their buyer client and recommend further investigation. This protects the buyer's interests and fulfills the agent's fiduciary duty.
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