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Buyer's agent not disclosing issues to seller's agent

We are shopping for a home in a very competitive market. We are looking at high end homes at around the $1 million mark. In this state it has become common practice to put down large amounts of due diligence money to make your offer stand out and hopefully win. In our price point that's $50-$100 thousand. If you walk away from the deal, FOR ANY REASON, they get to keep that money.

So, I paid an inspector to walk through the home to look for issues. This is not a formal inspection, that happens after you put down your due diligence money. He found around $50 thousand dollars worth of issues that were not disclosed. Most of them are things the home owner could claim on their insurance, but if we buy the home we can not because they will predate our ownership of the property.

We really like the home and still want to put in an offer.

Our agent doesn't want to tell the listing agent about the issues because then "They'll have to disclose that information to the other buyers". Our agent tells us we have to write into the contract that we won't ask for repairs or money for repairs so that they will accept our offer.

Is it normal for the buyer's agent to help listing agent keep other buyers in the dark about major issues with the home?

submitted by /u/AdventurousLoad8578
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source https://www.reddit.com/r/RealEstate/comments/uuk1l6/buyers_agent_not_disclosing_issues_to_sellers/

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