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.
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This should have been a requirement a long time ago. The problem still remains however, that the knowledge not being disclosed by the agent, is in fact, most of time inaccurate.
FirstTuesdayRE http://t.co/HEnkG6n5