Certified Relocation Professional (CRP) Practice Exam

In a transaction where a transferee sells a home to a relocation management company, who has the duty to disclose property issues?

1. The transferee does not need to sign any state mandated disclosure statement

2. Under the law the transferee has the duty to disclose to the relocation management company

3. All problems must be repaired before selling to an outside buyer

4. The transferee is free from liability after 30 days of inventory

The correct answer is: Under the law the transferee has the duty to disclose to the relocation management company

The correct answer highlights that the transferee has a legal obligation to disclose any property issues to the relocation management company. This duty arises from laws governing real estate transactions, which often mandate that sellers reveal known defects or issues that could affect the value of the property or the safety of the purchaser. Transparency in property condition is crucial to ensure that the relocation management company can make informed decisions about the property. The law typically aims to protect buyers, including companies acquiring homes for relocation purposes, from unexpected costs and issues that were not disclosed prior to the sale. In this scenario, the transferee's responsibility for disclosure ensures that the relocation company has all necessary information to manage the property properly and uphold their fiduciary responsibilities. This also fosters trust in the transaction process by ensuring all parties have a clear understanding of the property's condition. Other options suggest notions that are inconsistent with the typical requirements for property transactions. For instance, implying that the transferee does not need to sign any disclosure statement disregards the legal requirements placed on sellers. Similarly, stating that repairs must be completed before selling and that the transferee is free from liability after a set period does not align with industry standards surrounding disclosure and liability. Each of these points overlooks the ongoing duty to disclose significant issues