PSI Virginia Real Estate Practice Exam

What must an agent disclose regarding material facts related to properties?

1. Facts only if requested by the buyer

2. Only if they believe it affects the sale

3. All relevant facts that may influence the transaction

4. Only negative facts about the property

The correct answer is: All relevant facts that may influence the transaction

An agent is required to disclose all relevant facts that may influence the transaction because this aligns with the principles of transparency and honesty in the real estate profession. Ensuring that all material facts are presented allows buyers to make informed decisions based on a complete understanding of the property's condition, features, and any potential issues. Material facts can include information about structural defects, zoning changes, and other significant elements that could impact the desirability or value of the property. By disclosing such information, agents fulfill their legal and ethical obligations, thus protecting both the buyer's interests and their own within the framework of real estate laws and regulations. In contrast, only disclosing facts if requested by the buyer can lead to omissions of critical information that the buyer may not think to inquire about. Additionally, limiting disclosures to facts that the agent believes may affect the sale could result in a lack of comprehensive communication, which can be detrimental to the buyer's decision-making process. Lastly, focusing solely on negative facts undermines the necessity of presenting a balanced view of the property, which integrates both positive and negative attributes that could affect someone's purchase decision.