What might result if an agent fails to disclose their role in a real estate transaction?

When an agent fails to disclose their role in a real estate transaction, they can face legal penalties as a consequence of their actions. Real estate professionals have a fiduciary duty to act in the best interests of their clients and to be transparent about any relationships or interests that could influence the transaction. Not disclosing such information can lead to legal repercussions, including lawsuits or disciplinary action from real estate boards or regulatory authorities.

By maintaining transparency and fulfilling their obligation to disclose pertinent information, agents build credibility and foster trust with all parties involved in the transaction. When agents choose not to disclose their roles, it undermines this trust and can result in conflicts of interest, which may further lead to legal issues for the agent.

In contrast, the other options present outcomes that are not typically associated with the failure to disclose. Increased buyer trust, immediate sale of the property, and higher closing costs do not stem from a lack of disclosure, and in many cases, failing to disclose can lead to a breakdown of trust and potentially complicate or delay the sales process.