Chapter 7 of 147% of exam
Property Condition and Disclosures
Sellers and agents must disclose material facts affecting a property. Proper disclosure reduces liability and protects buyers.
Latent Defects
A latent defect is a hidden material problem not discoverable by ordinary inspection, such as a concealed foundation crack. Known latent defects generally must be disclosed to buyers. Patent (obvious) defects are visible and place more responsibility on the buyer to observe.
Federal and Environmental Disclosures
Sellers of pre-1978 housing must disclose known lead-based paint hazards and provide an EPA pamphlet. Other issues such as radon, mold, or flood history may require disclosure. Agents must never actively conceal known defects.