Change the law: Requiring licensees to discuss known tax aspects of a transaction as part of their fiduciary duties

Brokers and agents do not currently have to disclose their knowledge of any tax consequences of a real estate transaction to their principal client, even if they are aware of the repercussions; repercussions which exist in every real estate sale. This legislation would mandate the disclosure to a client of known tax aspects of a transaction in an effort to combat the wide-spread phenomenon of the “dumb agent” — the agent who, despite his knowledge, is legally allowed to remain silent about consequences known to him in a transaction.  A preprinted, boilerplate advisory to see another professional if you have concerns about the tax aspects of a transaction does not disclose the agent’s knowledge, which if disclosed might affect the client’s decisions – and thus is a material fact deceitfully omitted.