What is a common consequence of failing to disclose property defects?

Failing to disclose property defects can lead to potential legal liability for the seller. In real estate transactions, sellers are often required by law to disclose known issues or defects with the property. This duty to disclose is designed to protect buyers from unforeseen problems that could affect their investment or the safety and functionality of the property. If sellers do not disclose such defects, they can be held legally accountable for any resulting damages or losses incurred by the buyer after the sale. This could include lawsuits, financial restitution, or even the rescission of the property sale.

The other options may relate to different real estate issues but do not directly stem from failing to disclose property defects in the same legal and financial way that potential liability does. For example, while property values can be affected by the presence of defects, it is the non-disclosure of those defects that typically creates a legal issue, rather than the defect itself directly lowering value. Similarly, property taxes and mortgage interest rates are influenced by broader economic factors, not solely by the seller's failure to disclose defects.