EstatePass
Mandated DisclosuresMaterial Defect DisclosureEASY

A South Dakota seller knows the basement floods during heavy rain but does not disclose this. This is an example of:

Correct Answer

B) Concealment of a material defect

Intentionally concealing a known material defect (such as recurring basement flooding) is a violation of South Dakota's disclosure requirements. The seller has a duty to disclose known material conditions that affect the property's value or desirability.

Answer Options
A
Puffery
B
Concealment of a material defect
C
Caveat emptor
D
Acceptable sales practice

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Mandated Disclosures Question

Sign up free to unlock full analysis

Background Knowledge for Mandated Disclosures

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Mandated Disclosures

Sign up free to unlock full analysis

Common Mistakes to Avoid on Mandated Disclosures Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Related Topics:

fraudactive-concealmentcaveat-emptor-limitationsas-is-sales

Key Terms:

concealmentfraudknown defectbasement floodingactive hiding
Was this explanation helpful?

More Mandated Disclosures Questions

People Also Study

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing