Leasing License Practice Exam

What type of problems must sellers disclose on the Residential Real Property Disclosure form?

1. Cosmetic issues

2. Flooding or recurring leakage problems

3. Neighborhood disputes

4. Property taxes

The correct answer is: Flooding or recurring leakage problems

The Residential Real Property Disclosure form requires sellers to disclose significant issues that could affect the value or desirability of the property. Flooding or recurring leakage problems are critical to disclose because they can indicate structural issues or result in significant damage over time. Such problems also pose potential health risks due to mold and other factors associated with water intrusion. Transparency about these types of issues is essential for protecting buyers and ensuring fair transactions. On the other hand, cosmetic issues may not need to be disclosed since they do not typically affect the property's overall function or safety, and buyers might reasonably expect to encounter them. Neighborhood disputes, while they can impact a buyer's experience, are often considered more subjective and not covered by mandatory disclosure laws. Lastly, property taxes, while important for buyers to consider, are not a physical problem with the property itself and do not typically require disclosure in this context.