In a real estate transaction, a broker has an obligation to disclose known defects as well as defects that are reasonably discoverable. This is rooted in the principle of full disclosure, which is essential in fostering transparency and trust between parties involved in a real estate deal. Known defects are issues the broker is aware of, but the requirement to disclose reasonably discoverable defects means that the broker must also highlight any problems that a prudent buyer would likely uncover through a thorough inspection or inquiry.
This duty helps protect the interests of the buyer and ensures that they are fully informed about the property they are considering purchasing. It also mitigates the risk of future legal disputes arising from undisclosed issues, which could result in financial implications for both the seller and the broker.
The other options do not pertain to the specific requirements for disclosure in this context. While disciplinary actions or account balances may be relevant in different circumstances, they do not fall under the critical obligation of revealing property-related defects to the other party in a transaction.