What type of facts must a licensee disclose?

A licensee must disclose any adverse material facts because these are significant pieces of information that could affect a buyer's decision regarding the property. Adverse material facts include issues like structural problems, environmental hazards, or any other conditions that might negatively impact the property's value or desirability. By disclosing these facts, the licensee is acting in the best interest of the client, promoting transparency and trust in the transaction.

In real estate practice, the focus is on maintaining ethical standards, which necessitates full disclosure of any information that can affect the buyer's understanding or judgment about a property. This duty to disclose is grounded in legal obligations to protect consumers and ensure that they are fully informed before making significant financial commitments.

The other options do not encompass the breadth of what needs to be disclosed. Positive material facts, facts known only after an inspection, and property values do not necessarily carry the same imperative for disclosure as adverse material facts. While understanding property values and positive aspects can be beneficial for buyers, the critical concern is making sure that any detrimental factors are communicated clearly and upfront.