It's not the job of the "sitting" agent to disclose latent defects to those visiting the open house.

Since you've already agreed to sit the open house, it would be unprofessional to cancel at the last minute.  Since the defect was "noticeable" to you, it should be noticable to the public as well.  I would sit the open house, but mention the defect to the listing agent afterward.

I don't sit open houses. If I did ... I would absolutely mention the defect to everyone who walked in the door. I would add, I apologize I do not have more information about it however I will find out more and send you additional information if you would like. 

Linda,

An undisclosed major defect is a red flag in our opinion.  Since we value our reputation more than instant cash, we would not do an open house and represent that house.    I have no idea what the laws and litigation atmosphere is like in Chicago, illinois.  In California, it is fertile ground for a lawsuit which includes a scattershot mentality meaning that anyone who has represented the house (openhouse) could be sued.  Even if you are not liable, you still have to defend yourself.  As Mimi Foster would say, "Run Forrest, Run!"  A

"You notice a major defect."

If the defect is readily apparent, and no attempt to conceal, then all you need to do is confirm those visiting also see the same opportunity.

Depending on the nature of the 'defect' some will run like chickens while others will see a conversation is needed.

"What the seller intends to do" should not be a roadblock. In most cases I advise buyers, those who want the job done right, to negotiate and fix it themselves.

This IS a list building opportunity. "Do you have other opportunities like this?" Be prepared to take names and numbers.

When sitting an open house for another agent it would always be a good idea to be familiar with the home.  That would mean a visit to preview in advance and get to know the property.  If the LA wants to share information with you about the property then you would talk to them in advance.  I have never had any agent sit an open house with disclosures in hand so I'm not sure how you know something was not disclosed.  

I get what you are saying that there is something that you saw that concerned you but not sure if it's advisable for you to diagnose it as major.  Unless you are an expert in that particular issue it might be wise to not say that.  If it's that obvious those who come through would see as well.  

You might just want to give the LA feedback at the end and mention what you have a concern with.  Maybe the home is being sold as a fixer.  You gave limited info, the listing is not yours and how do you know?  

Just saying...

I agree with Alan May - it's your job as a 'sitting agent' to notify the listing agent of a suspected defect. Disclosure is the seller and LA's responsibility  -unless, of course, you find yourself representing one of the buyers who comes through the property. 

Disclose, disclose, disclose, disclose, disclose, disclose, disclose, disclose and then disclose.

Homes get sold with defects all the time.  The key is disclosure.  If you're not the listing agent, then you're probably doing an open house to find a buyer.  If someone notices the defect and asks a question, it's perfectly OK to say, "Nothing was mentioned in the property disclosures; however, lets ask the listing agent to see if they can provide some additional info."  I would take a photo of the defect, and ask the listing agent via email (so there's a paper trail)  If neither the seller or listing agent have any additional information, then I would explain to the buyer, "I understand your concern,; however, I'm not a contractor or home inspector.  If you'd like to write an offer, I strongly recommend getting a home inspection from a licensed inspector of structures.  They can give their professional opinion."  I would still do the open house.  Even if nobody is interested in writing an offer, I would STILL send the listing agent an email putting in writing what you observed.  This way, you can bring it to their attention and nobody can accuse you of failing to act in a manner that demonstrates, "a standard of reasonable care."

I'd be concerned about holding it open but if you are already there I would proceed. If its obvious it's likely attendees will see i but I would be sure to disclose it. L.A. and seller need to disclose, even if apparent. I would document any questions, and your concerns, including the lack of disclosure.

Proceed with the Open House.  If the defect is obvious to you, it is probably obvious to others. If asked about it, just say you will find out how the owners plan to deal with the defect prior to closing.   Do not distribute the Disclosure until the defect is added to the Disclosure.   Get more information for future communications with potential buyers.  Tell the listing agent you did not appreciate being put in that awkward position.

Realtors are required to tell what they know about a property. The listing agent and seller need to disclose. If the defect is obvious, people coming to the open house will most likely ask about it.  I suggest answering that you have calls out to the listing agent to get answers on what is being done about the defect.

An adverse material fact is a required disclosure for agents in our state which the Listing Agent and their broker are required to disclose.  Make sure this agent and their broker are aware.

Kathleen Daniels nailed this one!

Linda Mindock - not disclosed in the listing sheet?

I don't feel comfortable sitting at the open house...

I tried to formulate an answer but, unless I know what that "major defect" is, there are different ways it can be handled. If it's apparent, well, that is the case in many homes and you deal with it verbally unless someone wants to go under contract and you advise them as your client. Now if a home is advertised as having 4 bedrooms and it is legally only 3, that can be a problem and I wouldn't put anything on the flyer except square footage. Then verbally, say "This home is being sold as having 4 bedrooms, but one room does not have a closet, so that is really considered a den or office".

If you noticed it the buyers walking through the house will probably notice it too and it doesnt sound like it was covered up, right?  Are you willing to tell us what it is?   How do you know it wasn't disclosed and that it wouldn't be disclosed to buyers? -Kasey

I don'tr do opens. But I'd just point out the defect, it's not your listing so you are not putting your name to it, but if you are worried, point it out...that is our job to so.

Why is it being held OPEN ???

      In Florida, the legal issue is "latent".   Is it visible and obvious, or would only a trained eye or a home inspection find it?  Is the Seller or the LA attempting to conceal or cover this defect?

     If you don't feel good about it, then don't hold the Open House.

yes.... this has been committed to the homeowner, I assume.... if someone asks you about the "defect" you'll need to say you will find out from the listing agent and get back to them.... 

when an agent is hosting an open house listed by another agent, it's always wise to PREVIEW the property and ask if there's anything special that needs to be discussed... and if you notice the defect, get the facts....

Either get it disclosed officially or you do it. If not let the listing go. Also you do pay a broker to give you advice.

Bring the defect to the attention of the listing agent.

Not your job to disclose - but if it were me and I needed the clients I would make sure I disclose what I know and sign them up to look for another property

Kathleen Daniels nailed this one!

According to our state law if you know it to be a problem you are obligated to disclose it and I would also tell the LA so it can hopefully resolved.

I am totally with Ron and Alexandra Seigel !!

Linda Mindock Any and all defects must be disclosed.

Pick a different property. Now you know. I'd stay totally away from that LA that roped you into it.

This is Weds not Saturday night for Sunday.

A lot of times the disclosures happen throughout the process of the purchase.  They dont really need to disclose all defects to an agent who s hositng an Open house, right?  You are not in a trasaction with them at the moment. Just like they may not disclose all repairs that have been made, insurance claims that have been resolved, etc, but they would during the transaction.

If you saw something while at the open house, I would let anyone know that you saw it, and to have them or their agent ask the lsiting agent about it. 

It may not be that they are hiding anything, but maybe not have told you about it yet. 

If you have knowledge you must disclose. If the LA is not available, so be it! It does not change your duty!

As long as you give a name to the elephant in the room...proceed

I would think twice before sitting another open house for that agent.

Linda Mindock Is this major defect an adverse material fact. If so, it has to be disclosed. Other than that, you have to make a decision if you want to sit on the open house. It's your reputation.

Discuss openly if it comes up with visitors; address with LA and broker if still no response.

You are not the listing agent. At the end of the day, there's little chance that someone coming through the open house will buy that house. But if you do have a buyer client for it, you should disclose. Personally, I would renege on my commitment to sit that house... that might get the listing agent to respond to you.

Sitting at the open house may give you an opportunity to meet with buyers who are not working with an agent . Very few buyers actually buy the home they see at a open house so sell them something else .

Like others, it is our duty to disclose a defect.

If you were working with a buyer you would negotiate it in the price.

Honesty is the best policy.

I would not go forward with it.  That's just me.  I will not be put in a position of being in the line of fire with the seller and his agent if I'm not part of the transaction.

If you noticed it, others will notice it, and make allowances for it. I wouldn't worry about it. At some point, the buyer and inspector will address it.

Many agents do not even remember what the house looks like after getting a listing signed. In CA AVID form one needs to note it.  Not aware of any agents lost their license because of failure to disclose it.

Disclose it and then just hold a normal open house with a major defect that has been disclosed.

It's not the job of the agent to disclose latent defects to those visiting the open house.

AS a licensed Real Estate agent we are required to disclose any defect that we know about.  The seller needs to be made aware of the liability of NOT disclosing

You are required to disclose known or discovered defects when representing a buyer.

I would not sit the open house

You wouldn't have any info if you brought a buyer either.  Just treat it like that.  "Sorry, no info on this, but I'll be happy to get you an answer on it from the LA if you leave me your name and number."

I always walk through or have my sitter walk through with me before the open house which would head off any surpirses