10.39 Material Facts Must Be Disclosed

Material facts or information about a property must be disclosed. If the seller knows the roof leaks, informs the agent of this fact, and asks the agent to keep the information confidential, then the agent must inform the seller that the information is material and must be disclosed to all prospective buyers.

Examples of confidential information that cannot be revealed are the following:

• Seller’s reasons for selling the property.

• Seller’s minimum acceptable sales price.

• Seller’s current financial condition.

• Fact that the seller is about to face foreclosure of the property offered for sale.