What must a seller disclose if a property has significant issues that arise after a contract is ratified?

The correct choice indicates that a seller must disclose all known defects in a property, even after a contract has been ratified. This obligation stems from the principle of full disclosure in real estate transactions, which is designed to protect buyers from unexpected problems that may affect their investment.

When a seller is aware of any issues — such as structural problems, water damage, pest infestations, or issues with the heating or cooling systems — they have a legal and ethical duty to inform the buyer. This disclosure is especially important because the buyer may have made decisions based on the assumption that the property is in good condition. If the seller fails to disclose known defects, they could face legal consequences, including the potential for lawsuits or the contract being declared void.

The emphasis on "all known defects" reinforces that sellers must act transparently and uphold their responsibility for the condition of the property, regardless of whether the issues are visible or hidden, or arise before or after the contract acceptance. As a result, maintaining open communication about the property’s condition fosters trust and can prevent disputes down the line.