Leasing License Practice Exam

What does the Residential Real Property Disclosure Act require sellers to disclose?

1. Rental income potential

2. Known defects affecting the property

3. The history of previous tenants

4. Future renovation plans

The correct answer is: Known defects affecting the property

The correct answer is that the Residential Real Property Disclosure Act requires sellers to disclose known defects affecting the property. This legislation is designed to promote transparency in real estate transactions and protect buyers from unexpected issues that could impact their decision to purchase a home. By necessitating the disclosure of any known defects, sellers are held accountable for providing accurate information, allowing buyers to make informed choices about their potential investment. It creates a fairer marketplace where both parties are aware of any issues that might affect the property's value or livability. Options such as rental income potential, the history of previous tenants, and future renovation plans do not fall under the typical requirements of this Act. The focus is specifically on the physical aspects of the property and any defects that are known to the seller. This approach helps to mitigate disputes and enhances consumer confidence in the home-buying process.