How do NSAR ethics govern disclosure of known defects to a buyer?

How do NSAR ethics govern disclosure of known defects to a buyer?

• A. Licensees must disclose known material latent defects or conditions; use SPDS or disclosures in writing; avoid misrepresentation.
• B. Disclosures must be provided only after closing.
• C. Disclosures are optional if the buyer asks for them.
• D. Licensees are not required to disclose defects unless asked.

Answer: (A)

NSAR ethics require licensees to disclose known material latent defects or conditions to a buyer, and to document those disclosures in writing. If a licensee is aware of hidden issues that could affect the buyer’s decision (latent defects), they must share that information and do so in a written form, typically through a Seller Property Disclosure Statement (SPDS) or an equivalent written disclosure. The purpose is to give the buyer full, verifiable information to make an informed decision and to prevent misrepresentation. This duty is proactive and applies during the transaction, not after closing, and it isn’t optional or contingent on the buyer asking. The written disclosure creates a clear record that helps protect both the buyer and the licensee.

NSAR ethics require licensees to disclose known material latent defects or conditions to a buyer, and to document those disclosures in writing. If a licensee is aware of hidden issues that could affect the buyer’s decision (latent defects), they must share that information and do so in a written form, typically through a Seller Property Disclosure Statement (SPDS) or an equivalent written disclosure. The purpose is to give the buyer full, verifiable information to make an informed decision and to prevent misrepresentation. This duty is proactive and applies during the transaction, not after closing, and it isn’t optional or contingent on the buyer asking. The written disclosure creates a clear record that helps protect both the buyer and the licensee.