What must be disclosed to a buyer if a property has significant issues?

The requirement to disclose all known material defects to a buyer is fundamental in real estate transactions because it ensures transparency and protects the buyer's interests. Material defects refer to significant issues that could affect the property's value or pose a risk to safety or habitability. This includes problems like structural issues, plumbing or electrical issues, pest infestations, or environmental hazards that a reasonable buyer would want to know about before making a purchasing decision.

Disclosing all known material defects allows buyers to make informed choices regarding their investment, potentially negotiate repair costs, or decide whether to proceed with the purchase at all. Failure to disclose such defects can lead to legal repercussions for the seller, including lawsuits for misrepresentation or fraud, as buyers could argue that they were deprived of essential information that influenced their purchasing decision.

The other options provided fall short of adequately addressing the ethical and legal obligations of disclosure in real estate transactions. Minor issues or cosmetic defects do not typically require disclosure since they do not significantly impact the property's value or safety. Disclosing all property features would be impractical and not required; only significant defects must be communicated to the buyer. Thus, the emphasis on known material defects ensures that buyers receive important information that directly affects their investment and well-being.