Which statement best describes the duty of disclosure?

• A. The agent must disclose only material defects.
• B. The agent should disclose only information that benefits the agent.
• C. The agent must disclose any information that might affect the transaction, including material and non-material facts.
• D. Confidential information should be withheld from everyone.

Answer: (C)

The main idea is that the duty of disclosure requires the agent to share information that could influence the other party’s decision in a transaction. This means not only material issues like defects, liens, or zoning problems but also smaller or non-material details that could still affect a buyer’s willingness or comfort with the deal. The best statement captures this broad obligation: disclose any information that might affect the transaction, including both material and non-material facts. By doing so, the agent helps the other party make an informed decision and protects against misrepresentation. Focusing only on material defects misses other information that could influence the outcome; claiming disclosure should favor the agent isn’t ethical; and withholding confidential information isn’t appropriate except in tightly defined, lawful exceptions.