Texas Real Estate Sales Agent ExamTexas Real Estate LawEasy
A real estate sales agent, sponsored by a broker, is preparing to list a residential property for sale. During the initial consultation, the seller mentions that the property was built in 1972. What specific disclosure requirement must the agent ensure is met regarding this property?
- AThe agent must ensure a Municipal Utility District (MUD) disclosure is provided, as all properties built before 1980 require it.
- BThe agent must ensure a Seller's Disclosure Notice is completed only if the seller is aware of any lead-based paint hazards.
- CThe agent must ensure the seller provides a Lead-Based Paint Addendum to the sales contract, as the property was built before 1978.
- DThe agent must ensure a Property Owners' Association (POA) Resale Certificate is obtained, as older homes are often subject to such associations.
Show answer & explanationAnswer & explanation
Correct answer: C. The agent must ensure the seller provides a Lead-Based Paint Addendum to the sales contract, as the property was built before 1978.
Properties built before 1978 are subject to the federal Lead-Based Paint Disclosure Rule. The agent must ensure the seller complies with this requirement by providing the necessary addendum and pamphlet.
Why the other options are wrong
- A. MUD disclosures are related to utility districts, not the age of the property.
- B. The Lead-Based Paint Addendum is required for properties built before 1978 regardless of the seller's knowledge of actual hazards; the seller must disclose any known hazards within the addendum.
- D. POA Resale Certificates are for properties within an HOA, which is not directly tied to the age of the property being built before 1978.
Lead-Based Paint Disclosure (Federal/Texas)
Federal law requires sellers and landlords of residential properties built before 1978 to disclose known lead-based paint hazards and provide a lead-based paint pamphlet to buyers or tenants.
- Applies to residential properties built before 1978.
- Requires disclosure of known lead-based paint and hazards.
- Requires provision of an EPA-approved lead hazard information pamphlet.
- Buyers have a 10-day period to conduct a risk assessment or inspection.
Memory trick: Old homes, '78, lead paint, disclose or hesitate!