What is the consequence of an agent failing to disclose a material fact?

The correct answer is that an agent would face legal liability for misrepresentation if they fail to disclose a material fact. In real estate, a material fact is any information that could influence a buyer's decision, such as structural issues, zoning problems, or environmental hazards. Agents have a legal and ethical obligation to disclose such facts to their clients.

When an agent withholds this information, it can lead to significant consequences, including lawsuits for misrepresentation or fraud. Disclosing material facts is essential for maintaining transparency and trust in the agent-client relationship, and failing to do so can result in financial penalties and damage to the agent’s reputation. Ensuring that all relevant information is shared protects both the buyer and the agent from future disputes.

The other options do not accurately reflect the serious nature of failing to disclose material facts. A lack of complaint from the buyer does not absolve the agent of responsibility. A warning from the real estate board is not a standard or guaranteed consequence of such an omission, and while potential loss of commission might occur in some cases, it does not encompass the legal repercussions that arise from misrepresentation.