Final answer:
A licensee must disclose material facts like a leaky roof or basement and dual agency, but not personal medical information like whether a seller has AIDS, which is not a material fact.
Step-by-step explanation:
When a licensee is overseeing a real estate transaction, they must disclose all material facts that affect the value or desirability of a property. A material fact could be something like a leaky roof or basement issues—even if they have been repaired. However, personal information about the seller, such as whether a seller has AIDS, is not considered a material fact that affects the transaction and does not need to be disclosed. Disclosing personal medical information would be a violation of privacy laws. Another obligation for disclosure is a dual agency, where the agent represents both the buyer and the seller in the transaction, which must be disclosed because it could affect the agent's impartiality.