PSI Oklahoma Real Estate Practice Test

What should the realtor have done regarding a murder-suicide that occurred at a property?

1. Disclose the information to potential buyers

2. Inform the seller about the obligation to disclose

3. The broker has no obligation to disclose

4. Keep the information confidential from buyers

The correct answer is: The broker has no obligation to disclose

The correct understanding of the obligation related to a murder-suicide that occurred at a property centers on the nature of material facts in real estate transactions. Generally, real estate professionals must disclose material facts that could affect a buyer's decision. However, regarding stigmatized properties—such as those associated with tragic events or crimes—the obligation to disclose is less clear and varies by jurisdiction. In many cases, brokers or realtors are not legally required to disclose incidents related to the property's history that do not affect the physical aspects of the property. As such, the assertion that the broker has no obligation to disclose aligns with the legal principle that personal circumstances such as a murder-suicide might not be considered material facts necessitating disclosure. The real estate agent's primary role is to protect client confidentiality and adhere to local laws. If the area’s laws do not require disclosure of such events, the realtor is correct in not disclosing this information to potential buyers. This consideration allows for the protection of the seller's privacy and follows the legal framework in many places, including Oklahoma.