Environmental

In South Dakota, a real estate professional who is aware of a significant mold problem in a listed property should:

APaint over the mold before listing to prevent buyer concern
BDisclose the known mold problem to prospective buyers as a material defect✓ Correct
COnly disclose if the mold is visible
DWait for the home inspection to reveal the issue

Explanation

Known significant mold problems constitute a material defect that must be disclosed to prospective buyers. Concealing or failing to disclose known material defects can result in civil liability for misrepresentation, and possibly license violations for the real estate professional.

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