What type of property issues come under the liability of real estate agents when transacting sales?

Study for the Rockwell Fundamentals Test. Utilize flashcards and multiple-choice questions with explanations. Be fully prepared for your exam experience!

The correct answer focuses on known latent defects. These are hidden problems within a property that are not immediately obvious upon inspection and could significantly affect the property's value or safety. Real estate agents have a legal and ethical obligation to disclose any known latent defects to buyers during transactions. This responsibility helps protect the interests of all parties and promotes transparency in the real estate process.

While visible defects, major structural issues, and issues disclosed by the seller may be relevant, they do not encompass the full spectrum of liability that agents face. Visible defects are typically easy for buyers to identify, and major structural issues might not cover all potential problems. On the other hand, relying solely on issues mentioned by the seller could leave agents vulnerable if they are aware of other hidden issues yet fail to disclose them. Thus, the emphasis lies on known latent defects as a critical aspect of a real estate agent's liability while facilitating transactions.

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