I hope this happens more. A former client I pressed the eject button on did that, on a much smaller scale. Got money to fix a problem, did not fix the problem, attempted to pass it along to buyer and got mad when full disclosure was made.  Goodbye goodbye!
In AZ, disclose, disclose and did I mention DISCLOSE? With only 3 exceptions - having nothing to do with condition. 

the best way to stay out of trouble is to disclose everything and anything that would make a potential buyer change his/her mind about buying the property.... that's the rule I always used when I listed property over a 39 year period.... never had any problems....

I do not think there is any other state requires more disclosures and forms  than CA. We have a form for everything, and if you forgot to disclosure something you knew or intentionally did not......there are even more hungry lawyers to help to get you. 

Wow! If the agents knew, their license should be revoked. In Oregon, we must disclose anything we know about the home. 

I work in California and we regularly come up with NEW disclosure laws everytime an agent gets sued. We have some BIGGIES which set the mark for disclosures all over the nation. In our office we have a disclosure for the Transfer Disclosure Statement! Ridiculous? Absolutely but essential in this litigious society! 

Strong, very strong.

What a nice charming looking couple!

Very important, especially if you dont want to spend a lot of time in court.

Sink holes, hurricanes, alligators, and hot muggy weather...

You all should consider moving up North.  Give me a call, I will help you find something that does not have any of these ailments.

It is mandatory in TN for the seller to disclose the presence of sinkholes or injection wells on their property even if there has been no damage or consequences.

Our laws/rules are very strong and you disclose all if you are smart.  But, there will always be some that try to slide and hide and then you see articles like the one you have posted here...

Ahhh, it's Cali, we are pretty strict. 

Virginia is a " Buyer Beware " state for the most part. But, there are laws against " Active Concealment " and you can be sued and/or arrested despite the Caveat Emptor protections.

I encourage the sellers to tell it all as do I not giving it a second thought. Buyers and their agents deserve no less than that

I'd say they are pretty strong here in CA with a number of things that are statutory. Disclose, disclose, disclose!

Hawaii is like California, we require full disclosure of everything known or that should be known by the seller. And agents can be sued if they fail to  disclose any material fact omitted by the seller even if their client instructs them not to disclose it.

Fred,

Regardless of what state one is in you disclose it all.  This is not something to mess around with.  Even if the state laws say, you don't have to disclose, we disclosed.  Disclose or be Deposed...even if you are righ, you have to defend yourself and that costs money!

Ours has been full discousre since 1995 as dictated by state law.

Fred, as you know we actually have very specific sinkhole disclosure forms.  I have sellers fill them out regardless of whether there was any issue just because the area had been hit with so many claims in the past. Unfortunately, unless there is something on public records, there is no way for me as a real estate agent to know whether someone has made a claim that may or may not have been paid unless they disclose it. Additionally, different counties have different requirements for the recording of permits and/or sinkhole reports, some do, some don't, and those that do require it, didn't have these systems in place until later when the sinkhole issue became more prevalent (very few claims prior to the market crash).  The insurance companies do have access to the claim information and history of a property but they don't release or disclose at the time the buyer makes their application for insurance (which I think they should). Buyers may consider asking sellers for a CLUE report as part of their disclosures. 

Very....

Proving what you do not know is impossible.

Be careful regarding what you advocate.

Fred Griffin Adverse material facts are a required disclosure in my State.

They are pretty stringent here. Even if a seller doesn't disclose something, if it's something relatively easily discoverable by the agent, we are obliged to disclose.

This is what AZ requires: SPDS

Our laws are very strong on disclosure

OMG, BOTH agents knew AND conspired?! Holy guacamole!

Bye-bye livelihood, hello orange!

Thanks for sharing the disclosure requirements in your area.

Oops! That's a pretty big payout to sit on without repairs!

PA has been Mandatory since 1996 (residential 1-4 units)

Disclose, disclose, disclose especially when you have received insurance proceeds as a result of the problem. 

Same here but thank heaven we do not have sink holes. Most often it is a seller who with holds info, some times the agent really does not know and then the burden of proof says "should the agent have known?" The answer is if there is red flags, if they live in the area and have seen it, but some times there is no red flags and despite asking the seller, it is not told to us as agents

Pretty blatant stuff if it's true. Still have to prove the agents knew of the problems.

Same here.  We must disclose known material facts.

This is the way it should be - so more agents will be afraid of doing any such fraud.

Fred, we are a reciprocal state, and have similar disclosure rules.  

Strict.

If we know about it, we have to disclose it.  Doubt any arrests would happen here, unless it could be proved they were criminally negligent.

Now that is The Dark Side.  Evil Intent knowing it would cause harm. Those folks deserve to be in jail. 

Our laws are strong however it generally means lawyer time which is costly and can take years to settle. 

Greedy dirtbags...

It's always about the money...

Eve