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The agent listed the property for sale.  When visiting the property to meet the septic inspector, the agent noticed a “nudist colony” about 400 yards away.  The agent asked the seller for details.  The seller confirmed that there was in fact an active “nudist colony” down the street.  The seller insisted, however, that because the “nudist colony” was not on the property itself, that no disclosure was required.  


Is the listing agent obligated to disclose the nearby “nudist colony”?




The listing agent has an obligation to disclose all known facts “which materially or adversely affects the consideration to be paid.”  AAC R4-28-1101(B).  Because the nearby “nudist colony” will likely affect the price a buyer is willing to pay, the listing agent is obligated to make the disclosure even though the nudist colony is not actually operated on the property.