Real Estate property disclosure

buyer beware" (aka caveat emptor)

doctrine and are not considered full disclosure states. In these states, the seller makes no representations about property conditions, and the burden is on the buyer to perform due diligence.

Mold

growth is promoted by excessive moisture and lack of air circulation

In states that don't require full disclosure, the seller's agent has a responsibility to notify the seller of the following duties:

to disclose items that are required to be disclosed, to be honest, and to not hide defects. In full disclosure states, the seller's agent has a responsibility to notify the seller of the duty to disclose all known material facts.

What property feature could lead to soil contamination?

Underground storage tanks

Environmental issues requiring disclosure

Underground storage tanks Groundwater contamination The presence of former waste disposal sites Mining activities Use of agricultural pesticides

Emma is interested in purchasing a property with a big fenced backyard, because her eventual goal is to open an in-home daycare. Which of the following is a zoning issue that you would encourage her to research?

Whether or not current regulations permit home-based businesses.

You're showing your buyers a house that clearly has a second-story addition. What important thing do you need to find out from the sellers?

Whether or not the addition was permitted

adverse material factis

negative property information that could reduce the property's value.

Radon

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

The property owner's and licensee's role regarding property condition is generally dictated by

state law

Disclosure should be made before

contractual agreement takes place

stigmatized property?

A home where a homicide, suicide, or haunting occurred

What is the mechanism by which asbestos can cause cancer?

Asbestos fibers decay, and the particles in the air can damage the lungs when inhaled.

Which of the following properties would require a lead disclosure?

Duplex built in 1959

Discoloration along walls and sagging or uneven floors can be signs of ______.

Flood damage

Information that must be disclosed by the licensee is anything that meets the MAAP

MAAP standard: material, adverse, actually known, and related to physical condition

In full seller disclosure states, whose responsibility is it to complete the seller disclosure form which will be reviewed by prospective buyers?

Seller

Government disclosure requirements (LEAD)

Sellers in residential real estate transactions involving properties built before 1978 must provide a lead-based paint disclosure and EPA-produced "Protect Your Family ... " lead safety pamphlet to the buyer

Asbestos

a fibrous material that becomes dangerous when it deteriorates and becomes friable (easily crumbled) was used in many materials before the 1970s because of its fire-retardant qualities. Inhaled particles can damage the lungs over time. Only licensed professionals should handle asbestos

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

Soft spots, mounds, and discolored soil

latent defectis

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

Sellers and listing agents often choose not to review the inspection report, especially if the buyers terminate the contract based on the report

because they are then liable to report any adverse findings

Lead

can be found in paint, plumbing, dust, soil, and drinking water. Lead causes many health issues, particularly among infants, children, and the elderly. In children, leadrelated issues can include behavioral problems, learning disabilities, seizures, and even