What can be a consequence of failing to disclose known defects in a property sale?

The correct choice highlights the significant legal ramifications a seller may face if they fail to disclose known defects during a property sale. In real estate transactions, sellers have a legal obligation to disclose any material defects that could affect the buyer's decision to purchase the property. If a seller knowingly conceals these defects or misrepresents the condition of the property, they may be held liable for misrepresentation. This can lead to various legal consequences, including the possibility of the buyer seeking damages or rescinding the contract.

This principle is rooted in the concept of good faith in property transactions, where transparency is expected to ensure that buyers make informed decisions. Failing to disclose known defects can undermine trust and result in litigation, making sellers accountable for their omissions or false statements about the property. Such legal liability reinforces the importance of ethical and fair dealings in real estate sales.