A real estate agent is legally responsible to disclose:

The correct answer indicates that a real estate agent is legally responsible to disclose only material defects. Material defects are issues with the property that could significantly affect its value or desirability. This can include problems such as structural issues, water damage, or pest infestations that a prospective buyer should be aware of before making a decision.

In the context of real estate transactions, the agent's responsibility focuses on protecting the interests of the buyer and ensuring they have all necessary information to make informed decisions. Not every fact about the property needs to be disclosed, as this could overwhelm the potential buyer with irrelevant information. Additionally, personal information about the seller or the financial details of the buyer are generally considered private and not subject to disclosure unless it directly impacts the transaction or is authorized by one of the parties involved. Thus, the responsibility to disclose only material defects highlights the need for clear legal and ethical guidelines in real estate practice, ensuring transparency while also respecting privacy.