Leasing License Practice Exam

The Residential Disclosure Act is applicable to which type of sellers?

1. Sellers of any size property

2. Sellers of 4 units or less

3. Commercial property sellers

4. Sellers of single-family homes only

The correct answer is: Sellers of 4 units or less

The Residential Disclosure Act is designed to promote transparency and protect buyers in real estate transactions by requiring sellers to disclose specific information about the property. The act specifically pertains to residential properties that are smaller in scale. Thus, it applies notably to sellers of properties that consist of four units or less, which includes single-family homes, condominiums, and smaller multi-family dwellings. These requirements are crucial for ensuring that potential buyers are aware of any issues or conditions related to the property that could affect their decision to purchase. In contrast, larger properties, such as those with five or more units or commercial properties, do not fall under the same disclosure requirements outlined by this act. This limitation in scope reinforces the focus on protecting buyers in typical residential real estate transactions, which tend to be more common and involve individual households, rather than complex commercial dealings.