Which law requires brokers to disclose any knowledge of physical defects on a property?

The Residential Real Property Disclosure Act, established in 1994, mandates that sellers of residential properties disclose known physical defects to potential buyers. This law plays a critical role in promoting transparency in real estate transactions, ensuring that buyers are made aware of any issues that could affect their decision to purchase a property. The act requires sellers to fill out a disclosure form detailing any known structural, mechanical, or environmental issues, allowing buyers to make more informed choices.

In contrast, the other options focus on different aspects of real estate and consumer protection. The Real Estate Settlement Procedures Act primarily addresses the process and costs associated with closing a real estate transaction. The Fair Housing Act prohibits discrimination in housing based on characteristics such as race, color, religion, and gender, while the Fair Credit Reporting Act regulates how consumer information is collected and shared, which does not pertain to property disclosures. Therefore, the law that specifically addresses the obligation of brokers and sellers to disclose physical defects is indeed the Residential Real Property Disclosure Act.