If a realtor discovers a property defect after the sale, what should their first step be?

The first step a realtor should take upon discovering a property defect after the sale is to reassess their disclosure obligations. This is crucial because realtors have a legal and ethical duty to disclose known defects that could significantly affect a buyer's decision. By reassessing the situation, the realtor can determine whether the defect falls within the scope of what they are required to disclose under the Real Estate and Business Brokers Act and any other pertinent laws or regulations.

This approach allows the realtor to consider the nature of the defect, the timing of its discovery, and any relevant communications with the buyer prior to the sale. The realtor must ensure they are acting in a manner that protects all parties involved and upholds their professional responsibilities.

Informing the buyer immediately might seem like a good option, but it should be done only after understanding whether there is a legal obligation to disclose the defect and the implications of doing so. Filing a complaint with RECO or ignoring the defect are not appropriate first steps, as they do not address the need for compliance with disclosure duties or professional ethics.