A seller's Property Disclosure form states there are no known material defects, but the licensee knows about asbestos. The licensee should:

The most appropriate action for the licensee is to disclose the existence of asbestos to all potential buyers. This aligns with the ethical and legal obligation to provide full transparency regarding material defects that could impact a buyer's decision. Asbestos is a known health hazard, and its presence in a property constitutes a material defect that could affect the value and safety of the home.

By disclosing this information, the licensee is fulfilling their duty of honesty and integrity towards potential buyers. It is crucial for buyers to have all relevant information when considering the purchase of a property, as undisclosed issues can lead not only to potential health risks but also to legal liabilities for the seller and the licensee. Transparency builds trust and helps protect all parties involved in the transaction.

The other options do not adequately address the need for full disclosure. Seeking permission from the seller to disclose the asbestos may unnecessarily complicate responsibilities, while suggesting a home inspection without first disclosing known issues might lead to a lack of trust if the inspector uncovers the asbestos. Lastly, advising the seller to wrap the pipes does not address the immediate need to inform potential buyers of the risk associated with the asbestos, and it could also imply that the licensee is trying to hide the issue rather than rectify it