PSI Virginia Real Estate Practice Exam

What is the seller required to disclose about the property?

1. Only visible defects

2. Known material defects

3. Future property values

4. Information about neighboring properties

The correct answer is: Known material defects

The seller is required to disclose known material defects about the property. Material defects are issues that could significantly affect the value of the property or pose a risk to the occupants’ health and safety. This obligation helps ensure that potential buyers have a clear understanding of any significant issues that could influence their purchasing decision. Unlike visible defects, which might be apparent during a property showing, known material defects can include underlying problems like structural damage, plumbing issues, or issues with the electrical system that may not be immediately obvious. This requirement serves to protect buyers and promote transparency in real estate transactions. Discussing future property values or information about neighboring properties does not fall under the realm of required disclosures. Sellers are not obligated to predict future market trends or disclose unrelated information about adjacent properties, as that information is not directly relevant to the property being sold.