Agent must disclose known material facts even if the seller won't
Before you read
Test yourself first: 5 questions
Question 1 of 5
A residential property condition disclosure statement is typically completed by:
Answer: A. The seller completes the property condition disclosure from their own knowledge; the agent should not fill it in for them.
Question 2 of 5
A seller's property condition disclosure statement is typically meant to disclose:
Answer: B. A disclosure statement reports the property's condition and defects within the seller's knowledge; it does not require knowledge the seller does not have.
Question 3 of 5
When a seller completes a property condition disclosure form, the seller is generally expected to:
Answer: B. The disclosure form calls for honest answers based on what the seller actually knows; it is not a warranty of condition or a duty to investigate.
Question 4 of 5
Under the federal lead disclosure rule, a real estate agent involved in the transaction is primarily responsible for:
Answer: B. The agent must ensure the seller is aware of and complies with lead-disclosure obligations; the agent is not required to test, abate, or guarantee a lead-free property.
Question 5 of 5
A property where a notorious crime or death occurred may be classified as:
Answer: A. Stigmatized property carries an emotional/psychological stigma rather than a physical defect; disclosure rules for it vary widely by state.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Seller discloses KNOWN material defects — roof, foundation, water, systems
- It's a disclosure, NOT a warranty — and no substitute for an inspection
- Agent must disclose known material facts even if the seller won't
- 'As is' sells the current condition but does NOT excuse hiding known defects
- When in doubt, disclose — nondisclosure lawsuits outnumber disclosure ones
Seller Property Condition Disclosure: FAQs
Is Seller Property Condition Disclosure 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.
