Leasing License Practice Exam

Which of the following is NOT one of the exemptions to the Residential Real Property Disclosure Act?

1. Transfers between spouses

2. Transfer through a court order

3. Sales during economic hardship

4. Transfers due to bankruptcy

The correct answer is: Sales during economic hardship

The exemption that is not included under the Residential Real Property Disclosure Act is related to sales during economic hardship. The Act establishes specific criteria under which sellers are required to provide disclosure relating to the condition of residential properties. The exemptions listed in the other options encompass circumstances where the transfer of property occurs for reasons that don’t typically involve a standard sale scenario—such as transfers between spouses or those resulting from court orders, which are not based on the commercial transaction framework that the Act regulates. Sales during economic hardship, however, do not fall under the established exemptions and are subject to the same disclosure requirements as any other standard real estate transaction. This is because the Act is designed to protect buyers by ensuring they receive full information about the property’s condition, regardless of the seller's financial situation or distress. Hence, this accountability remains intact even amidst economic challenges.