There can be some legal ramifications for failure to disclose. Laws could vary by state. Lawsuits are not fun. And not only can sellers get in trouble but agents can be held liable as well

Jamie Anderson Disclosure protects your client. We will have to visit you on Sunday's if you don't fully disclose.

Being sued seems to top my list.

Whatever the Agent knows the Client should also know !

Um...  losing your license, getting sued, not being able to sleep at night...  

Disclosure protects everybody and is a must 100% of the time.  

Protection - ramification - lawsuit and a big one!

commission my dear.....

Lawsuits are bad and agents aren't always upfront about representing both sides.

Best of luck with your studies 

Non-disclosure could result in being sued and possible loss of your real estate license. Follow the laws in your state and you won't have to worry about either.

Not disclosing can get very expensive.

Disclosures is one of the best ways to protect from potential liability.   Providing necessary disclosure help all parties understand upfront important information and limits potential problems, misunderstanding, etc.

I agree with Jeff Dowler CRS 

What Michael Setunsky said...

Follow the rules in your state.

Not disclosing could result in being sued and possible loss of your real estate license.

Scott has answered.

It's the right thing to do.  

The law.

Gladys Kravitz.  And she talks.  A lot.  Do you want to tell prospective buyers? Or do you want Gladys to tell them?  

The first thing you might lose is your clients trust. I overdisclose sometimes, "I am/am not the listing agent..., I showed this property to another buyer I'm working with..., This property is listed by a colleague in my office, but I'm free to represent you without reservation.., I sold this home in 2007 and it's back on the market now with another agent..."  

Trust once lost leads to all the worst things that can happen including lawsuits, fines, licence issues, etc.  

Jamie Anderson - simple - let buyers know the facts about the house.

And it is important that buyer acknowledges it so they cannot go after the sellers at a later date.

The law ways we need to let people know who we are working with and how.  Law suits are the off shoot of not doing this

One of the biggest sections of law I remember learning in college was agency because it is so frought with problems, which is to be expected when you think that you are placing your personal authority into the hands of another.

Because you are representing someone else in a business dealing, disclosure (telling your principal everything you know that will adversely or positively affect a transaction) is part of the duties of a fiduciary (agent). As such, it stands to reason that disclosure is the primary job of the agent for the principal. In our case, as Realtors, disclosures are in written form and, for the most part, have been put into a specific "memo" (form) for our use in common housing transactions.  Further, we have a specific set of disclosures that are required in order to close or complete a transaction. Having all the forms created for you is not so common in other agency relationships.

Obviously failure to disclose is ground for termination of agency, lawsuits, recission of contracts, ADQ damages, etc. Let's just say you don't want to go there, right?

You have to disclose what you know, and that includes agency relationships. Your buyer or seller deserves to know who you represent and how you are representing them. You don't want to lose your license over something like this. 

Jamie, the agency and disclosure laws vary from state to state.  if this is part of a homework assignment, shame on your instructor!  S/he should be getting you really clear on whatever the Utah agency and disclosure laws are so that when you pass the test and start your practice, you'll know what you are doing.

It is important to disclose everything, so just do it.

Imagine buying something & finding out negative things after the purchase?

You go to jail.   The only letters you receive are legal papers serving you with a civil suit.

The client needs to know who you are representing.