Which obligation does a seller have regarding known defects in the property being sold?

The obligation a seller has regarding known defects in the property being sold is to disclose all known defects. This requirement is rooted in California law, specifically the principle of transparency and honesty in real estate transactions. Sellers are mandated to provide potential buyers with full disclosure about any issues that could affect the property's value or the buyer's decision-making process.

Disclosing all known defects helps ensure that buyers can make informed decisions and understand any potential risks associated with the property. This obligation is not only ethical but also helps prevent legal repercussions for the seller after the sale closes, as failure to disclose significant defects could lead to claims of misrepresentation or fraud.

Other options do not align with legal requirements. For instance, disclosing only major defects would leave out other relevant information that might significantly impact the buyer. Keeping defects confidential goes against the duty to disclose and could lead to serious legal consequences for the seller if the buyer discovers undisclosed issues later. Finally, disclosing defects only upon inquiry does not fulfill the proactive requirement to disclose all known issues upfront. Hence, sellers must take the initiative to inform buyers about any known defects without needing to wait for the buyers to specifically ask.