What must a real estate licensee disclose to their client in a transaction?

In a real estate transaction, it is essential for a licensee to disclose any material facts that could influence their client's decision making. Material facts are pieces of information that are significant enough to affect a buyer's or seller’s choice in the market. This obligation is rooted in the duty of loyalty and the fiduciary responsibilities that the licensee has towards their client. By disclosing such facts, the licensee ensures transparency and helps their client make informed decisions regarding the property.

The other choices may involve elements of the real estate process but do not directly address the fundamental requirement of disclosure that impacts the client’s decision-making process. Personal opinions, while potentially relevant in conversation, do not hold the same weight as material facts in terms of legal obligations. Possible future development plans, while significant, may not always be known or concrete enough to be classified as material facts. Lastly, contracts and agreements from previous transactions generally pertain to confidentiality and past dealings rather than current obligations that are supposed to be disclosed in a new transaction.