A property was built in 1975 and the seller knows it contains asbestos insulation that was encapsulated in 1995. The encapsulation is intact with no visible damage. How should this be handled in the SPDS?
Correct Answer
B) Disclose the presence of asbestos and the encapsulation work performed
Known presence of asbestos must be disclosed regardless of its current condition or encapsulation status. The seller should disclose both the asbestos and the mitigation efforts. A is incorrect because encapsulation doesn't eliminate disclosure requirements. C is incorrect because material conditions must be disclosed proactively. D is incorrect because testing isn't required if the condition is already known.
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A seller is completing the structural section of their SPDS. All of the following would typically require disclosure EXCEPT:
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The seller's SPDS indicates 'no knowledge' of structural issues, but during the transaction, the neighbor mentions seeing foundation repair trucks at the property two years ago. What should the listing agent do?