What is the consequence of failing to disclose material facts to a buyer?

Failing to disclose material facts to a buyer can result in significant legal consequences, including penalties for misrepresentation. Material facts are those that could affect a buyer's decision-making process regarding a property. When a seller or their representative withholds this information, they can be found liable for misrepresentation or fraud, which can lead to legal action from the buyer seeking damages.

The obligation to disclose arises from the duty of honesty and fair dealing, which is fundamental in real estate transactions. Buyers rely on the integrity of the information presented to them, and failure to disclose essential facts can undermine that trust, leading to potential legal repercussions for the seller or agent involved. This accountability helps maintain ethical standards in real estate practices and protects the interests of buyers.