Leasing License Practice Exam

What should sellers be aware of when filling out the Residential Real Property Disclosure form?

1. It is optional to disclose any issues

2. They may be held liable for inaccuracies

3. Disclosure is only important for new properties

4. Buyers will not review the form

The correct answer is: They may be held liable for inaccuracies

Sellers should be acutely aware that they may be held liable for inaccuracies when filling out the Residential Real Property Disclosure form. This means that if a seller provides incorrect or misleading information about the condition or issues related to the property, they could face legal consequences. This responsibility emphasizes the importance of honesty and thoroughness when completing the form, ensuring that all known defects or conditions are fully disclosed to prospective buyers. The law is generally designed to protect buyers by providing them with crucial information that could affect their decision regarding the purchase of a property. If a seller fails to disclose known issues or misrepresents the property, they may be sued for damages if the buyer suffers a loss as a result of that non-disclosure or misrepresentation. This liability aspect underscores why accuracy is critical when it comes to such forms in real estate transactions. In contrast, disclosing issues is not optional; it applies universally to sales, not solely to new properties, and buyers typically do review these forms as part of their due diligence when considering a purchase.