Oklahoma Real Estate Sales Associate Exam — All Questions
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Federal law requires which disclosure for the sale of most residential housing built before 1978?
- a.A radon test report
- b.A flood elevation certificate
- c.A mold inspection
- d.A lead-based paint disclosure✓
The federal Residential Lead-Based Paint Hazard Reduction Act requires sellers and landlords of most housing built before 1978 to disclose known lead-based paint hazards and provide an EPA pamphlet, because lead paint was banned for residential use in 1978. Radon, flood, and mold disclosures may be required in some states or circumstances but are not the federal pre-1978 requirement.
A seller knows the basement floods every spring but does not mention it, and the defect is not visible during a normal inspection. This is an example of a:
- a.Latent material defect that must be disclosed✓
- b.Patent defect the buyer should have found
- c.Stigmatized condition
- d.Condition protected by caveat emptor
A latent defect is a hidden, material problem not discoverable by ordinary inspection; a seller (and agent) who knows of it generally must disclose it because it affects value or desirability and safety. A patent defect is one that is obvious or readily observable. A stigmatized property involves events like a death, not a physical defect. Modern disclosure duties limit the old caveat emptor ('let the buyer beware') rule for known latent defects.