What type of facts must be disclosed due to their potential impact on property value?

The correct answer involves the necessity of disclosing latent material facts and stigmatized material facts. Latent material facts refer to defects or issues that are not immediately observable or known without thorough inspection. These could include issues such as mold, structural defects, or problems with the foundation, which could significantly affect a buyer's decision and the property's value.

Stigmatized material facts involve events or situations that may not affect the physical condition of the property but can nonetheless influence its marketability and perceived value. This could include anything from previous criminal activity on the premises to being situated in a location with negative public perception. Disclosure of these types of facts is crucial because they can impact a buyer’s willingness to purchase the property and the price they are willing to pay.

In the context of real estate, maintaining transparency regarding such facts is not only a best practice but often a legal requirement, as failing to disclose them could lead to legal repercussions down the line.

Other options include facts like physical defects and zoning regulations, which are important but do not fully encapsulate the range of hidden or socially influenced factors that impact perceptions of value in the same way. Market trends and buyer motivation, while relevant to a seller's strategy, do not pertain to specific disclosures that affect