PSI EXAM REVIEW - Property Disclosure

Radon

Occurs naturally in the environment and can be found in soil well water

Home inspection contingency

One of the best way to protect the buyer's earnest money Helps determine the true condition of the home

Tax abatement

Program that lower property taxes for a set amount of time. Typically offered for new construction of when property lies in rehabilitation or renovation areas

Common wood-eating pests

Termites Carpenter ants Powderpost beetles

Easement

The authorized use of another's property for a specific purpose; runs with the land (material fact)

Encroachment

The illegal intrusion of some structure or object across a property boundary line (material fact)

Galvanized pipes

corrode and rust over time, restricting water flow and resulting in bits of debris and mineral deposits appearing in water.

Caveat emptor

"Buyer beware" In these states, the seller makes no representation about property conditions, nd the burden is on the buyer to perform due diligence

Chimney Ventilation issues

drafts near the fireplace, a cracked or sloping hearth or firebox, and loose or crumbling bricks

Standing water present

indicates drainage issue

Carpenter ants

leave sawdust like materials called frass when they borrow in wood

Termites

presence of mud tunnels

Vent pipe petruding

sign of underground storage tank

Land/Soil conditions

standing water Mulch mounded against a home Sinkhole Vent pipe protruding from the ground (underground storage tank)

Structural Issues

the presence of any of these issues indicate a need for further investigation by a trained specialist

Mulch mounded against a house

wood frame siding can hold moisture against the siding.

On-site survey

A blueprint or map showing measurements, boundaries and area of a property, sometimes required by lenders to ensure that no encroachments or easements exist

Material facts

A fact that would influence a reasonable person in making a decision; if not disclosed a person's decision would have been different

Asbestos

A fibrous material that becomes dangerous when it deteriorates and becomes friable (easily crumbled) Was used in many materials before 1970 because of fire retardant qualities Inhaled particles can damage the lungs over time Only licensed professionals can dispose of it

Latent defect

A hidden property condition that's not likely to be discovered through a general review or inspection

Lead

Can be found in paint, plumbing, dust, soil and drinking water many health issues particularly among infants, children and elderly

Mold

Growth is promoted by excessive moisture and lack of air circulation

Comprehensive Loss Underwriting Exchange (CLUE)

Helps insurance companies determine insurability of property

Powderpost beetles

Many small holes through wooden beams

External environmental hazards

May be difficult to detect. Most states requires sellers disclose such issues Underground storage tanks Groundwater contamination The presence of former waste disposal Mining activities Using of agricultural pesticides

Soft spots, mounds, and discolored soil

May indicate that the property was used for waste disposal.

Interior environmental hazards

Mold, radon, asbestos, and lead

Adverse Material Fact

Negative property information that could reduce the property value