Chapter 6 - Property Disclosures

Vocabulary practice flashcards covering property conditions, material facts, disclosure laws, and environmental hazards based on Chapter 6 lecture notes.

Salesperson Exam Weight (Chapter 6)

This section makes up $6\%$ of the Salesperson Exam, which is approximately $5$ questions.

Home inspection contingency

One of the best ways to protect a buyer's earnest money deposit by allowing for the determination of the true condition of a property.

Wood-eating pests

Organisms that include termites, carpenter ants, and beetles which can cause structural issues.

Easements

Non-possessory rights acquired by one party to use another party's land for a special use.

Encroachments

Structures or objects built on another person's property without permission.

Material Facts

Anything that would affect the value of a property or influence a buyer's decision about buying the property and the price they will pay.

Latent Defects

Hidden property conditions that are not likely to be discovered through a general review or inspection.

Disclosure States

States that require sellers and real estate agents to disclose all known material facts and latent defects about the property.

Disclaimer States

States that subscribe to a 'buyer beware' (caveat emptor) doctrine where the burden is on the buyers to perform due diligence through inspections.

Option States

States where sellers may choose to either answer questions on a disclosure form or disclaim and make no representations.

MAAP Standard

A standard for disclosure that includes Material information, Adverse factors, Actual knowledge, and Physical condition.

Brownfields

Former industrial, factory, manufacturing, or storage sites suspected to contain environmentally hazardous waste from previous use.

Stigmatized Properties

Locations where a death (homicide or suicide), crime, haunting, or paranormal activity occurred.

HIV/AIDS Disclosure

Disclosing that a previous owner or resident had these conditions is a fair housing violation and should never be done by real estate agents.

Megan's Law (Public Law $104-145$)

A federal law that requires the release of relevant information to protect the public from sexually violent offenders.

Comprehensive Loss Underwriting Exchange (CLUE)

A database checked by insurance companies to help determine the insurability of a property based on its history of claims.

Radon

An environmental hazard that occurs naturally in the environment and can be found in soil and well water.

Asbestos

A fibrous material used in home materials prior to $1970$ for fire suppression that becomes dangerous and friable when it deteriorates.

Friable

A term describing material that is easily crumbled, often used in reference to deteriorating asbestos.

Lead-Based Paint Disclosure

An EPA requirement for properties built before $1978$; sellers must provide a lead-based paint disclosure and a 'Protect Your Family' safety pamphlet.

Lead Inspection Window

The $10$-day period buyers have to perform a lead inspection or risk assessment after receiving a lead disclosure.