How should a licensee address known liens or financial encumbrances when marketing a property?

• A. Ignore liens if they are minor and only discuss them upon request.
• B. Only privately note liens to the seller without disclosing to buyers.
• C. Disclose known liens, provide clear information about effects on ownership transfer, and advise buyers to verify.
• D. Disclose liens but refuse to explain how they affect ownership.

Answer: (C)

Disclose known liens, provide clear information about effects on ownership transfer, and advise buyers to verify.

Liens are encumbrances that can block or complicate a clean transfer of title. Sharing what is known about any liens helps the buyer understand what must be cleared before or at closing and how this could affect the timeline, cost, or ability to obtain title insurance. Explaining how a lien impacts ownership transfer—who must pay it, its priority, and the steps needed to obtain releases—gives buyers the factual basis they need to assess risk and negotiate. Advising buyers to verify details with a title company or attorney ensures due diligence and reduces the chance of surprises later. This approach is transparent, protects buyers, and supports a smoother transaction.