BIC TIP #1219: You Cannot Hide Your Head in the Sand

Stephen Long has heard this excuse more than once. Did you get the home inspection report? Yes. Did you read it? Well, no, I did not open it. In this BIC TIP, the Notorious BIC explains why that strategy does not work: if it is in your inbox, you have to open it, and material facts must be disclosed to every party in the transaction.

Honesty, Fairness, and Disclosure for Everyone

As brokers, we owe everyone in the transaction honesty, fairness, and disclosure. That is not limited to your own client. Disclosure of material facts is owed to all parties, including the other side.

So if either agent in the transaction is made aware of a material fact, there is an obligation to disclose it. Anything material has to be disclosed in the course of that transaction.

Willful Blindness Is Not a Defense

The unopened attachment trick is the real estate version of hiding your head in the sand. The report arrived. You had access to it. Choosing not to look does not erase what it says, and it will not impress anyone reviewing your conduct later.

Brokers are expected to know what they reasonably should know. Ignoring information that is sitting in your inbox is a fast way to find yourself on the wrong side of that standard.

Reports Are Not Ransom

Stephen also addresses a related temptation: holding a report as leverage. Some agents think they can sit on unfavorable findings, use them as a bargaining chip, or keep them in their back pocket. That is not how it works. If the information is material, it has to be shared, not held hostage or used as blackmail in a negotiation.

If you are unsure whether something rises to the level of a material fact, talk to your broker-in-charge before you decide to stay quiet.

The Practical Takeaway

Open the report. Read the report. If it contains material facts, disclose them to all parties who are owed that disclosure. Silence and strategic ignorance will not keep you out of trouble, but honest, timely disclosure will help keep everybody out of real estate jail.

This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.