According to Florida law, what can be a broker's action upon discovering that the title is encumbered?

Prepare for the Florida Realtor Sales Associate Exam with interactive quizzes, detailed questions, and insightful explanations. Boost your confidence and ace your test!

A broker's action upon discovering that the title is encumbered should be to inform the buyer before closing. This is crucial because it upholds the legal and ethical obligations of the broker to ensure that the buyer is fully aware of any potential issues with the property title. An encumbered title may affect the buyer's rights, the property's marketability, and their overall investment. Transparency in real estate transactions is vital, and failing to disclose such issues could lead to legal repercussions for the broker and undermine trust in the relationship with the buyer.

This action promotes informed decision-making and protects the interests of all parties involved. By bringing the encumbrance to the buyer's attention, the broker allows the buyer to consider their options, such as negotiating repairs, seeking legal advice, or deciding whether to proceed with the purchase.

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