Certified Relocation Professional (CRP) Practice Exam

Under current real estate disclosure law, what is required of a seller if they are aware of non-deteriorating asbestos in a home?

1. Disclose its existence to potential buyers

2. Have it removed and disclose its removal

3. Disclose its existence only if required by a state mandated disclosure form

4. Disclose its existence only if the buyer requires it

The correct answer is: Disclose its existence to potential buyers

A seller is required to disclose the existence of non-deteriorating asbestos in a home to potential buyers due to the inherent risks associated with asbestos exposure. Asbestos is a known hazardous material that can pose serious health risks, including lung disease and cancer when disturbed. The disclosure laws are designed to protect buyers from unseen hazards that could affect their health and safety. Transparency in real estate transactions is crucial, and sellers have a legal obligation to reveal any known issues that may influence a buyer’s decision. This requirement underscores the principle of full disclosure, allowing potential buyers to make informed choices regarding the property they are considering. The other choices do not align with the established legal requirements. Merely having the asbestos removed or disclosing its removal does not negate the responsibility to inform potential buyers about its presence, especially when it is determined to be non-deteriorating and poses no immediate threat. Disclosing only if a state mandated disclosure form requires it or only upon the buyer's request undermines the seller's duty to proactively inform buyers about known hazards, potentially exposing them to risks that they should have been aware of prior to purchase.