When a seller knows facts that materially affect the value of the property, to whom does the obligation to disclose them pass?

In real estate transactions, when a seller is aware of significant facts that could impact the property's value—commonly referred to as material facts—there exists a duty to disclose these to the appropriate parties. This obligation typically falls to the licensee, who acts as the intermediary between the seller and potential buyers.

The licensee is responsible for advocating for the seller while also ensuring that buyers receive crucial information about the property to make informed decisions. The duty to disclose rests with the seller initially, but it transitions to the licensee as part of their professional responsibilities. Therefore, if a seller has knowledge of material facts, it is the licensee's role to ensure that this information is communicated to prospective buyers, thereby facilitating transparency and integrity in the transaction process.

Other parties like inspectors and appraisers have their own distinct roles, primarily focused on evaluating the property condition or appraising its value, respectively. While they may uncover important information, they do not carry the legal obligation to disclose known material facts in the same way that the licensee does. Thus, the licensee's role is critical in ensuring compliance with disclosure regulations and protecting the interests of all parties involved.