What is a potential consequence of the non-disclosure of material defects?

The non-disclosure of material defects can lead to significant legal repercussions for the licensee involved in a real estate transaction. When a real estate professional fails to disclose known issues that could affect the value or desirability of a property, they may be held liable for misrepresentation or fraud. This can result not only in lawsuits initiated by affected parties, such as buyers who feel they were misled, but also repercussions such as fines, loss of licensure, or even criminal charges in severe cases. The legal obligation to disclose such defects is rooted in the principles of transparency and fairness, ensuring that all parties have the necessary information to make informed decisions in real estate transactions.