It would depend on the disclosure laws in your state as to the seller's obligations.
Any broker/agent would also be bound by those obligations and also be obliged by the REALTORSŪ Code of Ethics to disclose any adverse facts they may be aware of.
Most disclosures are required to be received by any potential buyers prior to the preparation of any offers to purchase; I believe that would include any sort of lease/option arrangement.
Also any home inspections should be done up front as well.