Real Estate Agent Responsibilities: Disclosing Foreclosure to Buyers in Georgia

​As the seller’s real estate agent in Georgia, you are not specifically required to disclose to buyers that the property is in foreclosure unless it directly impacts the property's condition or value. However, there are important points to consider:

1. Material Facts: In Georgia, real estate agents are required to disclose any material facts that they are aware of regarding the property. A material fact is something that would influence a buyer's decision to purchase the property, such as the property being in foreclosure if it affects the condition or marketability of the home.
2. Duty to Advise Seller: While you're not required to disclose the foreclosure directly, you do have a duty to advise your seller about the importance of accurate disclosures, including issues like foreclosure that could impact the property's status or condition. If the property is in foreclosure, it may be relevant to the transaction, especially if the seller is behind on payments or if the foreclosure process is imminent.
3. Seller’s Disclosure Statement: Ultimately, it's the seller's responsibility to complete the Seller’s Disclosure Statement, which includes any material defects or issues with the property. As the agent, you should encourage the seller to be transparent about any foreclosure proceedings. If the seller omits this information and it later comes to light, it could lead to potential legal issues.
4. Listing Information: If you know that the property is in foreclosure, you should ensure that this information is clear to potential buyers, especially if you're representing the seller in the listing. You can advise your seller to be transparent or ensure that any buyer agents are informed.

In summary, while you don’t have a specific legal obligation to directly disclose that the property is in foreclosure, you must disclose material facts that affect the property and its condition. Being aware of the foreclosure status can be critical, and it’s important to guide your seller to be forthcoming in the transaction. If you're unsure, consulting with a local real estate attorney could help ensure you're following proper procedures.