What must be disclosed to buyers regarding a material defect?

The requirement to disclose all known defects that could influence property value stems from the ethical and legal obligations of real estate professionals. In Kentucky, as in many jurisdictions, sellers (and their agents) are required to provide full disclosure of any material defects in the property that could potentially impact a buyer's decision or the overall value of the property. This duty is integral to promoting transparency in real estate transactions and ensuring that buyers are fully informed before making a significant financial investment.

Material defects include issues that affect the property's structure or function, such as problems with the roof, plumbing, electrical systems, or foundation. These defects can directly influence not just the desirability of the property, but also its market value. By ensuring that all known defects are disclosed, buyers have the necessary information to make informed decisions, while sellers and agents protect themselves from potential legal disputes arising from undisclosed issues.

In contrast, the other options fail to address the comprehensive nature of disclosure required by law. For instance, disclosing material defects only upon inquiry undermines the proactive responsibility of the seller to inform potential buyers; simply being unaware of defects does not exempt a seller from disclosure duties; and limiting disclosure to only major defects related to safety neglects many other factors that could influence a buyer