Property Disclosures

Your buyer clients have access to property tax information for each listing that you've given them. Why are they asking you about county tax assessment schedules?

The property taxes may change drastically after reassessment.

Amira's seller Tom just received the news that his buyers are walking away from the sale. They weren't willing to proceed after they saw the inspection report. Neither Amira nor Tom has requested a copy of the report. What's the most likely reason for that?

If they see the report, they'll be required to disclose any adverse findings.

Tom and Rosanne are interested in a property, but before making an offer, they want to make sure there aren't any registered sex offenders living in the neighborhood. Which statement is most accurate?

It's up to the buyer to perform due diligence and research whether sex offenders live in the area. Licensees can direct clients to the state's registry.

Home inspector Maura was walking Thad through a property inspection. The frame house, on a slab foundation, had mulch piled up about 18 inches next to the house. Why was Maura noting this as a concern?

Mulch next to wood siding may lead to wood rot.

While walking around the exterior of a rural home she's inspecting, Juanita noticed a metal vent pipe sticking out of the ground 25 feet from the house. She documents this because it may be a sign of what potential environmental hazard?

Underground storage tank

What is true about a material fact that must be disclosed by a licensee?

A material fact may have more or less of an effect on a buyer based on the buyer's needs and values.

Basement wall cracks and leaks can be indicators of ______ problems.

Foundation

First-time buyers Marina and Cody have a very strict budget. They are shying away from fixer-uppers because they don't have the money to address hidden issues that often arise from older properties in need of numerous repairs. Inventory is low, but they just found a newer two-bedroom ranch that appears to be in great shape. Their agent Jack recommends that they go in with a strong offer, but to NOT waive the inspection contingency. Why this recommendation?

If their funds are limited, not having an inspection could lead to many high-priced repairs down the road—and they don't have the money.

Your buyers love the 1891 Victorian they have under contract, but they want to get both the water and the paint tested as soon as possible. What are they testing for in both water and paint?

Lead

Diana is selling her home in a caveat emptor state. She isn't required to complete seller disclosures, but which of the following IS she required to do?

Answer questions about the property honestly.

Three days ago, there was a severe thunderstorm in Shirley's town. Today, there's still a large puddle of water on her property, but it doesn't appear the neighboring properties have any puddles. This could indicate a(n) ______ problem.

Drainage

Which of the following properties requires a lead disclosure?

Duplex built in 1959

Marilyn is reviewing the inspection report with her buyer clients. Which of the following issues in the report should Marilyn flag as significant?

Presence of mold

Which one of the following could be a clue that a property was formerly a waste disposal site?

Soft spots, mounds, and discolored soil

Marlon and Leah are interested in buying a home in a new homeowner opportunity area. The 100-year-old row house was renovated and is like new on the inside. The property taxes decreased more than $5,000 last year. What's the likely reason for this?

Tax abatement

Marcus and Lucinda decided to play a round of golf on a beautiful new course in their neighborhood. As they're making the rounds, they notice vent pipes extending from the ground in various places. What might this signify?

The course is built on a capped landfill.

As Brandon's listing agent, Lily must disclose all known material facts relative to Brandon's property. Which of the following is a zoning-related fact that Lily should disclose to prospective buyers?

The property is right in the middle of a historic preservation district.

Which of these actions is a violation of the Residential Lead-Based Paint Hazard Reduction Act when a property constructed before 1978 is being marketed by a licensee?

The seller's agent fails to provide the pamphlet, "Protect Your Family From Lead in Your Home" to prospective buyers.

Why are galvanized pipes a problem in older homes?

They can rust and cause leaks and low water pressure.

What property feature could lead to soil contamination?

Underground storage tank

Buyer Peter is eager to make an offer on the two-story home you just showed him, but you're concerned about the back bedroom, since it looks like a relatively recent addition. When Peter asks you why it's an issue, how do you respond?

You recommend that Peter check on the permits for it, so that he doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code.

Your listing is a 1918 Craftsman with some significant foundation issues. So significant that the buyers walked away after the inspection. They provided you and your sellers with a copy of the inspection report, which also points out some wiring concerns. At today's open house, a prospective buyer asked to see a copy of any inspections done on the property. What should your response be?

You should disclose any adverse material facts, but you don't have to provide the report.