What is a common consequence of failing to disclose a material fact in a real estate transaction?

Failing to disclose a material fact in a real estate transaction often results in potential legal consequences for the broker involved. This is because sellers and brokers are legally obligated to disclose certain significant information that might affect the buyer's decision to purchase a property. If a material fact is not disclosed—such as structural issues, zoning violations, or environmental hazards—the broker could be subject to legal action from the buyer. This legal action could manifest as lawsuits for fraud, misrepresentation, or breach of duty, leading to costly repercussions for the broker both financially and professionally.

It's essential for brokers to adhere to disclosure laws and ethical standards to avoid these legal issues, as transparency is a foundational element of trust in the transaction process. Other options may reflect potential scenarios or outcomes that could occur in the context of the transaction, but the direct and immediate consequence of failing to disclose a material fact primarily aligns with the risk of legal action against the broker.