Hawaii Pre-Licensing National Practice Exam 2025 – Your Complete Prep Guide

Full disclosure in real estate transactions refers to providing all material facts relating to the property to the prospective buyer or investor. This principle is crucial in real estate as it builds trust between the seller and buyer, ensuring that all pertinent information about the property is known upfront. Material facts may include details about the property’s condition, any defects, past issues with the property (such as flooding or pest infestations), and zoning information.

This transparency helps buyers make informed decisions and protects sellers from potential legal disputes later on. It emphasizes the obligation of the seller or their agent to communicate any information that could influence the buyer’s decisions. While ensuring the property is up to code, allowing home inspections, and disclosing past ownership are relevant actions related to real estate transactions, they do not encompass the full breadth of what full disclosure signifies. Full disclosure focuses specifically on the communication of all essential facts that would materially affect the buyer's knowledge or decisions regarding the property.