medium · National Real Estate Exam disclosures

A listing agent observes fresh, localized patches of paint on the ceiling of a top-floor closet in a house with a history of roof issues. Although the seller states the roof was repaired, the agent should treat this as:

1. A patent defect that the buyer is responsible for discovering through their own professional inspection.
2. A minor cosmetic issue that does not meet the legal threshold of a material fact since the seller stated it was repaired.
3. A red flag that requires further investigation or disclosure because it suggests a potential recurring material defect.
4. Information protected by the duty of confidentiality, as disclosing it would harm the seller's bargaining position.

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