When should a seller disclose material defects of a property?

A seller should disclose material defects of a property prior to listing the property and during negotiations because this transparency helps build trust and protects the interests of both the seller and the buyer. Material defects are significant issues that could affect the value or desirability of a property, and failing to disclose them can lead to legal ramifications later on.

By addressing these defects early on in the process, sellers are providing potential buyers with a clear understanding of the property's condition, which aids buyers in making informed decisions. Furthermore, disclosing such defects before negotiations allows for more honest discussions about the property’s value and the terms of the sale, ultimately facilitating a smoother transaction.

In contrast, disclosing material defects after accepting an offer, only during the inspection process, or once the property is under contract may not offer the same level of protection and could lead to disputes or fallout if defects are later uncovered. Thus, proactive disclosure is the best practice in real estate transactions.