If an agent discovers a leak in a house that the seller is trying to hide, what is their ethical obligation?

The ethical obligation in this situation centers on transparency and honesty in the real estate transaction. By disclosing the leak to the buyers, the agent is upholding the principle of full disclosure, which is crucial in real estate practices. This ensures that the buyers are fully informed about the property's condition, allowing them to make an educated decision about their purchase.

Failing to disclose such a significant issue would not only violate ethical standards but could also lead to legal repercussions for the agent and possible claims against the seller. The agent’s role is to protect the interests of their clients—including the buyers—by ensuring that they are not misled about the property's state.

Notifying the seller of the findings or attempting to fix the problem themselves do not directly address the need for transparency with the buyers. Similarly, ignoring the issue would be a clear breach of duty and responsibility that agents have towards potential buyers. Therefore, disclosing the leak to the buyers is the most ethical and professional course of action in this scenario.