Michigan Real Estate Salesperson Exam — All Questions

A seller knows the basement floods during heavy rain but the defect is not visible during a normal showing. Under general real estate principles, the seller should:

• a.Disclose the known material defect to prospective buyers✓
• b.Say nothing because the buyer should inspect
• c.Disclose it only if the buyer is not using an agent
• d.Repair it secretly and never mention it

Sellers and their agents must disclose known material defects that are not readily observable and that affect value or desirability. A recurring hidden flooding problem is material and must be disclosed.