What is a potential consequence of failing to properly disclose information about a property?

Failing to properly disclose information about a property can lead to legal liability for misrepresentation. Real estate agents and sellers have a legal obligation to disclose material facts that could affect a buyer's decision. If a seller withholds significant information—such as major repairs, pest issues, or legal encumbrances—they may face legal action from the buyer after the sale. This could involve lawsuits claiming damages for misrepresentation or fraud, leading to financial repercussions and reputational harm for the parties involved.

In contrast, increased property value and enhanced buyer trust are typically linked to transparency and accurate information sharing, not the failure to disclose. Moreover, misrepresentation is often a barrier to the successful completion of a sale, as buyers may back out or challenge the transaction if they feel deceived after discovering undisclosed issues. Therefore, the consequences of failing to disclose relevant property information are serious and can significantly impact the transaction and all parties involved.