I believe in dealing fairly with people. I would not sell it as-is without providing a disclosure. If someone knows up front that it has issues and they pay the price, then you've done your duty.
I would try the gunny's advice. Try a different mag, clean, and lube. If that doesn't work I would go through taurus CS, get it repaired, put a few hundred trouble-free rounds through it, and then off-load it. If you've put enough rounds (at least 250 trouble free) to feel satisfied that the problem is resolved, then I think selling it to another person is fine.
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