What is a common consequence of failing to disclose known property defects?

Failing to disclose known property defects can lead to legal action or claims from the buyer because sellers have a legal obligation to provide a full and honest disclosure of any issues that could affect the value or usability of the property. When a buyer discovers undisclosed defects after the purchase, they may feel deceived and could pursue remedies through legal channels. This could include filing a lawsuit for misrepresentation or breach of contract, which could result in significant financial and legal repercussions for the seller.

While decreased market value of the property can be a consequence of such defects, it is the potential for legal ramifications that is most directly tied to the act of failing to disclose, making it the correct answer. Increased buyer interest is unlikely since many buyers would be deterred by known issues, and a failure to disclose would typically lead to a negative perception rather than a neutral response. Lastly, asserting that there would be no impact on the sale ignores the reality of buyer perceptions and legal expectations in real estate transactions.