Regarding disclosures, the licensee has the obligation to

The obligation of the licensee to disclose to the seller all material facts to which they have actual knowledge relates to the ethical and legal responsibilities in real estate transactions. This choice emphasizes the importance of full transparency in dealings, ensuring that the seller has all relevant information that could influence their decisions regarding the sale of the property.

Material facts are critical pieces of information that might affect the value of the property or the willingness of a buyer to proceed with a transaction. By disclosing these facts, the licensee helps uphold the principles of honesty and integrity in real estate practices. This practice not only protects the seller but also maintains the credibility of the licensee and the real estate profession as a whole.

In contrast, the other options either misrepresent the responsibilities of the licensee or fail to acknowledge the need for transparency. Disclosing mere suspicions about the buyer, maintaining silence, or only providing information upon request undermines the seller's ability to make informed decisions and can lead to legal repercussions for the licensee. Therefore, the mandate to disclose all material facts ensures that sellers are well-informed participants in the transaction process.