Under most state laws, must a seller (and their agent) disclose known material defects in a residential property?

MATERIAL DEFECT DISCLOSURE: Most states require sellers (and their agents) to DISCLOSE known MATERIAL DEFECTS — conditions that significantly affect the property's value, desirability, or safety. EXAMPLES: Roof leaks; foundation/structural problems; flooding or water intrusion history; pest infestation/termite damage; faulty systems (plumbing, electrical, HVAC); environmental hazards; prior significant repairs; SELLER DISCLOSURE FORM: Many states require sellers to complete a property condition disclosure statement; AGENT'S DUTY: The agent must disclose known material facts to the buyer and cannot actively conceal or misrepresent defects — even when representing the seller (the duty of honesty to all parties); 'AS-IS' SALES: Even in 'as-is' sales, known material defects generally still must be disclosed (as-is means the seller won't repair, not that defects can be hidden); LATENT DEFECTS: Hidden defects not discoverable by reasonable inspection — strong disclosure duty; CAVEAT EMPTOR: The old 'buyer beware' rule has been largely replaced by disclosure requirements for residential property; STIGMATIZED PROPERTY (deaths, etc.): Disclosure rules vary by state; the duty to disclose known material defects protects buyers and is a core state law/agency concept tested on the exam — agents and sellers cannot conceal known material defects.