What are possible consequences for a licensee who fails to disclose a material defect?

The potential revocation of a license and legal penalties is a serious consequence for a licensee who fails to disclose a material defect. In real estate transactions, a material defect is an issue that affects the value or desirability of a property. Under Michigan law, licensees have a legal obligation to disclose any material defects they are aware of to potential buyers.

Failure to disclose such defects can lead to significant repercussions, including legal action from the affected parties. This can involve lawsuits for fraud or misrepresentation, which may further result in financial penalties. Additionally, the state's licensing authority may impose disciplinary actions, including the potential revocation of the license, as it is a violation of ethical and legal obligations to conduct real estate transactions transparently. This emphasizes the importance of honesty and integrity in real estate practices, aimed at protecting consumers and promoting fair dealings.