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A Mississippi seller's property disclosure form asks about known defects. The seller recently learned of a defective HVAC unit but does not disclose it. This failure to disclose is:

AAcceptable since HVAC systems wear out and buyers should inspect
BPotentially fraudulent concealment of a known material defect, exposing the seller (and agent if they knew) to legal liability✓ Correct
COnly a violation if the buyer asks specifically about HVAC
DLegal since the disclosure form is just a formality

Explanation

Mississippi seller property disclosure requirements and general fraud principles require sellers to disclose known material defects. Knowingly concealing a defective HVAC system is fraudulent concealment.

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