Unit 3: Property Transfer Disclosures

Question 1

What is a seller’s disclosure?

Answer 1

A legal document that the requires sellers to provide previously undisclosed details about the property’s condition that prospective buyers may find unfavorable

Question 2

What does a seller’s disclosure typically cover?

Answer 2

• Land/soil and environmental conditions (radon)
• Structural issues and condition of fixtures
• Lot size, encroachments, easements, etc.
• All material defects

Question 3

T/F The broker completes the seller disclosure to the best of their current knowledge.

Answer 3

False. The seller NOT THE BROKER completes the disclosure to the best of their current knowledge.

Question 4

What is a material fact?

Answer 4

Is a defect that if known by the buyer might change their decision.

Question 5

What is a latent defect?

Answer 5

A hidden fact that is not easily discovered by an inspection.

Question 6

T/F In most states, brokers are required to visually inspect the property.

Answer 6

True