What is the consequence for a seller who fails to disclose known physical defects at closing?

When a seller knowingly fails to disclose physical defects during the transaction, they can be held liable for those defects even after the closing of the sale. This obligation stems from the principle of good faith and fair dealing, which requires sellers to be honest about the condition of the property. If the buyer can prove that the seller was aware of the defects and did not disclose them, the seller may face legal consequences, such as the obligation to pay damages for repairs, or in some jurisdictions, the potential for rescission of the sale.

The buyer's right to seek remedies remains intact, which reinforces the seller's duty to disclose. This liability can encompass not just direct repair costs but also any additional damages that the buyer incurs as a result of the failure to disclose the defect. Thus, the seller remains accountable post-closing for any known issues that should have been revealed prior to the sale, which is why this option accurately reflects the legal responsibilities involved.