Before you read
Test yourself first: 5 questions
Question 1 of 5
Which is most likely a MATERIAL defect requiring disclosure?
Answer: A. A failing septic system affects health, function, and value (material); purely cosmetic items generally are not material defects.
Question 2 of 5
A seller's disclosure says the basement 'has never leaked.' The listing agent saw water stains and a dehumidifier during the walkthrough. The agent should:
Answer: B. Agents must disclose material facts they OBSERVE, even when they contradict the seller. Concealment (or staging away evidence) is fraud. Disclose, recommend an expert, document.
Question 3 of 5
Visible mold from a known, unrepaired roof leak is:
Answer: A. Known mold/water-intrusion problems are material facts affecting value and health, so they must be disclosed even in an as-is sale.
Question 4 of 5
A leaking underground storage tank on a property primarily raises concern about:
Answer: A. Leaking USTs can contaminate soil/groundwater and create cleanup liability — a material environmental issue to disclose/investigate.
Question 5 of 5
Visible water stains on a ceiling are a 'red flag' that the agent should:
Answer: A. Obvious signs of a possible defect trigger a duty to inquire and disclose; ignoring red flags can be negligent misrepresentation.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
WELLS: test potability, flow rate, and equipment; disclose known contamination (nitrates, arsenic) and shared-well agreements — which are easements plus maintenance contracts. SEPTIC: disclose the tank/leach-field location, pumping history, and failures; many jurisdictions require inspection or pumping at transfer, and replacing a failed system can cost tens of thousands — a material fact by any standard. Lead can also enter water through old plumbing; point-of-sale testing rules vary. When municipal hookup is 'available,' connection and impact fees are the buyer's surprise to disclose.
Drinking Water, Wells & Septic: FAQs
Is Drinking Water, Wells & Septic on the real estate exam?
Yes. Disclosures & Environmental is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
