Nondisclosure in real estate transactions can result in legal actions such as rescission or damages if it pertains to latent defects not discoverable by reasonable inspection, or if it involves active concealment which amounts to fraudulent misrepresentation.
For example: A seller who is aware of severe structural issues due to termite damage but hides this fact behind new drywall and paint may be held liable for nondisclosure since purchasers could not reasonably identify this issue during standard inspections.