What must both real estate companies disclose when a defect is found in a home?

Prepare for the Illinois Broker Reciprocity Exam. Use flashcards and multiple-choice questions complete with hints and explanations. Ace your exam!

The correct answer emphasizes the obligation of both real estate companies to disclose any defects found in a home to subsequent buyers, regardless of the seller's wishes. This stems from the principle of transparency and the duty of real estate professionals to provide honest and complete information about a property.

In real estate transactions, the duty to disclose defects is critical because it protects buyers from purchasing properties with undisclosed issues that could affect their value or safety. This legal obligation is in place to ensure that all parties involved are aware of the property's condition, promoting informed decision-making.

In contrast, the other choices present scenarios where disclosures are either minimized or linked to the seller's permission. This does not align with the ethical and legal standards guiding real estate practices, as all licensed brokers are held to a high standard of integrity and must act in good faith towards all parties, including potential buyers.

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