New York State Real Estate Salesperson Licensing Practice Exam

A seller is typically required to disclose known defects or issues with the property because this obligation is rooted in the principle of transparency in real estate transactions. Disclosures about known problems, such as plumbing issues, electrical problems, or structural defects, are crucial for potential buyers to make informed decisions. Failing to disclose such information can lead to legal consequences for the seller if the buyer later discovers these issues after the sale, as it may be seen as fraud or misrepresentation of the property.

While information about renovations might be relevant, it is not as critical as disclosing known defects, which directly affect the safety and value of the property. The asking price is simply a negotiation point and is not related to the condition or issues of the property itself, and revealing the name of a previous owner does not contribute meaningfully to a buyer's understanding of the property's condition. Thus, the requirement to disclose known defects is designed to protect buyers and ensure fairness in real estate transactions.