Environmental
When a seller knows of a material defect related to an environmental hazard, failing to disclose it to a buyer may result in:
AOnly a civil fine from the DRE
BRescission of the sale, damages, and potential license discipline✓ Correct
CAutomatic loss of the right to sell real estate
DNo liability if the buyer had an inspection
Explanation
Failure to disclose known material facts — including environmental hazards — can expose the seller to rescission of the contract, compensatory and punitive damages, and for licensees, DRE license discipline including suspension or revocation.
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