What is a potential consequence of failing to disclose material facts during a real estate transaction?

Failing to disclose material facts during a real estate transaction can lead to significant legal repercussions, including potential legal liability for the parties involved. When a seller or their agent neglects to disclose crucial information that could affect a buyer's decision — such as issues related to the property's condition, zoning laws, or past damages — they may be held responsible for any resulting damages. This can manifest in lawsuits, financial penalties, or the obligation to make repairs or provide financial compensation to the buyer.

Moreover, real estate professionals have a duty to act in the best interests of their clients and maintain transparency. Failing to adhere to these ethical standards can result in disciplinary actions, such as the revocation of their real estate license. Regulatory bodies hold agents accountable to ensure trust and integrity within the real estate market, underscoring the importance of full disclosure.

The other choices presented do not align with the responsibilities of real estate professionals or the ethical considerations involved in property transactions, highlighting why the correct answer underscores the serious consequences of non-disclosure in real estate dealings.