What must a real estate licensee disclose when selling a property?

When selling a property, a real estate licensee is required to disclose any known material defects affecting the property. This obligation stems from the duty to provide honest and complete information to potential buyers, which is crucial to ensure that they can make informed decisions. Material defects are issues that could significantly impact the value of the property or a purchaser's decision to buy. Examples include structural issues, plumbing or electrical problems, and water damage.

The requirement to disclose these defects is rooted in the principle of transparency and good faith in real estate transactions. By doing so, the licensee helps protect consumers and maintains the integrity of the real estate market.

While the location of the property is inherently known and not something that needs to be disclosed specifically, knowledge of the property's market value often involves subjective judgment and is not a required disclosure. Future planned developments in the area may be relevant, but typically it falls outside the immediate responsibility of the real estate licensee unless specifically known and directly related to the property's condition or appeal.