Certified Relocation Professional (CRP) Practice Exam

Which condition ensures disclosure compliance when selling a home to a relocation management company?

1. The transferee accepts liability for all issues

2. The relocation company conducts its own inspections

3. State mandates requiring disclosure still apply

4. Selling below market value waives the need for disclosures

The correct answer is: State mandates requiring disclosure still apply

The best choice is that state mandates requiring disclosure still apply. This is because regardless of the nature of the sale or the parties involved, real estate transactions are typically governed by state laws that dictate what must be disclosed during the sale of a property. These statutes are designed to protect buyers by ensuring they are aware of any issues that could affect their decision-making, such as structural problems, environmental hazards, or legal disputes associated with the property. In the context of a relocation management company, compliance with these state mandates ensures that the buyer, even if they are a professional organization, has all the necessary information to assess the property accurately. The other options do not ensure disclosure compliance in the same manner. For instance, while a transferee accepting liability might seem to provide some protection, it does not negate the legal requirements of disclosure mandated by state law. Similarly, although the relocation company conducting its own inspections may provide additional insights into the property's condition, it does not substitute for the seller’s responsibility to disclose known issues. Lastly, selling below market value does not inherently remove the obligation to disclose issues, as legal standards would still mandate disclosure regardless of the sale price.