New York State Real Estate Salesperson Licensing Exam

What must be disclosed to clients regarding property conditions?

1. Only if asked

2. At the time of the initial showing

3. All known material defects

4. After the sale is completed

The correct answer is: All known material defects

Disclosing all known material defects is essential because it aligns with the legal obligations of a real estate professional to ensure transparency and protect consumer rights. In New York State, sellers and their agents must disclose any material defects that could affect a buyer's decision to purchase the property. A material defect is defined as a condition that significantly affects the value or desirability of the property, or poses a serious health or safety risk. This obligation goes beyond merely offering information when asked or during specific times, such as at the initial showing or after the sale is completed. By ensuring that clients are fully informed about any known issues, real estate professionals help build trust and facilitate informed decision-making, ultimately supporting ethical practice in real estate transactions. This requirement is foundational in the real estate profession, emphasizing the necessity of honest and open communication about property conditions.