FACTS:                    

During the listing presentation, the owner advised the agent that there was a nudist colony in the vicinity.  The seller further advised that sometimes some of the patrons of the nudist colony can be seen from the subject property.  The seller has asked the agent not to disclose this information.

ISSUE:                      

Must the nudist colony be disclosed by the listing agent?

ANSWER:                

Yes.

DISCUSSION:         

The presence of a nudist colony near the residential property is a material fact.  Accordingly, the agent has an obligation to disclose this fact pursuant to the Commissioner’s Rules (A.A.C. R4-28-1101) even though the seller has asked the agent to keep the information confidential.

Practice tip – Before independently making the disclosure, the listing agent should encourage the seller to make the disclosure on their own.