Material defects in a property must be disclosed by which party in a real estate transaction?

In real estate transactions, the responsibility for disclosing material defects lies with the seller as well as both agents involved in the transaction. This requirement is rooted in the obligation to act in good faith and provide transparency in the sale process. Sellers are typically expected to divulge any known material defects that could affect the value or desirability of the property. This fosters trust and allows buyers to make informed decisions.

Furthermore, real estate agents, representing the interests of their clients, are also required to disclose material defects that they are aware of. Agents have a fiduciary duty to their clients and provide guidance throughout the transaction process, which includes ensuring that disclosures regarding the property's condition are fully communicated. Thus, the combined responsibility lies with the seller and both agents, ensuring that all parties in the transaction have an accurate understanding of the property’s condition and any potential issues that may affect their interests.

In contrast, the notion that no disclosure is necessary if a property is sold "as is" is misleading. Even in such cases, sellers must still disclose known material defects, and "as is" does not exempt them from this legal obligation.