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
