What are the potential consequences for a real estate agent who fails to disclose known property defects?

Failing to disclose known property defects can lead to serious repercussions for a real estate agent. Legal action is a significant risk; agents can be sued for negligence or misrepresentation if they do not reveal defects that could affect the buyer's decision. This could arise from the implied duty of care that agents have towards their clients and prospective buyers.

Additionally, agents may face financial liability, which could include compensating buyers for damages caused by undisclosed issues. In severe cases, this could also lead to disciplinary actions from regulatory bodies, potentially resulting in the loss of their real estate license. Maintaining transparency is crucial for upholding ethical standards in real estate transactions, and failing to disclose defects undermines the trust integral to the client-agent relationship.

The other options do not align with the responsibilities and risks faced by agents in the industry. While increased sales or positive referrals might seem beneficial, they are unlikely outcomes following a failure to disclose critical information, which would more likely damage an agent's reputation and business.