Nevada Real Estate Practice Exam 2025 - Free Real Estate License Practice Questions and Study Guide

In real estate transactions, sellers have a legal obligation to disclose known defects that could affect the property’s value or desirability. This requirement is rooted in the principle of honesty and transparency, which is essential to protect the buyer's interests. The law mandates that sellers must disclose any material defects they are aware of, regardless of the method of sale or the condition of the property. Failing to disclose such defects can lead to legal repercussions for the seller, including potential lawsuits for misrepresentation or fraud.

While it may seem that using multiple disclosure documents or verbal disclosures might limit liability, this does not exempt a seller from their overall obligation to disclose known issues. Similarly, selling a property "as-is" does not absolve the seller from responsibility for disclosing flaws; it merely indicates that the seller will not make repairs. The duty to disclose known defects remains in effect regardless of the property's condition or the seller's intentions to avoid responsibility. Thus, the correct answer highlights the legal requirement that all known defects must be disclosed to ensure a fair and transparent transaction.