All of the following are examples of nonphysical stigma that could affect property value EXCEPT
Correct Answer
A) A cracked foundation visible in the basement
A cracked foundation is a physical defect, not a nonphysical stigma. All the other options involve psychological or reputational factors unrelated to physical condition.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Property Disclosures Question
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Related Topics & Key Terms
Key Terms:
Related Concepts
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
More Property Disclosures Questions
A builder warranty typically excludes:
Under TRID, the Loan Estimate replaced which older disclosure form that was previously provided to borrowers early in the loan process?
What is the primary purpose of the Loan Estimate form under TRID?
The Closing Disclosure must be provided to the borrower at least three business days before closing. If the closing is scheduled for Friday, and Saturdays and Sundays are not business days for this lender, when is the latest the borrower can receive the Closing Disclosure?
A borrower is buying a home and the lender requires escrow for property taxes and homeowners insurance. Where does the borrower find information about the initial escrow deposit required at closing?
- → What is the 'Annual Percentage Rate' (APR) as disclosed on the Loan Estimate and Closing Disclosure?
- → The Closing Disclosure replaced which two older disclosure forms that were previously used in residential mortgage transactions?
- → Under TRID, all of the following are included on Page 1 of the Loan Estimate EXCEPT.
- → Under TRID, all of the following pieces of information trigger the lender's obligation to provide a Loan Estimate EXCEPT.
- → A borrower wants to waive the three-business-day waiting period after receiving the Closing Disclosure because an emergency requires the borrower to move into the property immediately. Under TRID, can the borrower waive the waiting period?
- → A real estate agent is explaining TRID disclosures to a buyer. All of the following are on the Closing Disclosure EXCEPT.
- → A borrower is told by the lender that certain closing costs may change between the Loan Estimate and Closing Disclosure. Under TRID, which of the following fees has the strictest tolerance limit?
- → The Closing Disclosure includes an 'Other Costs' section. A borrower notices a charge for a home inspection that the borrower ordered independently. Who is responsible for this cost?
- → A borrower compares the Loan Estimate to the Closing Disclosure and notices that the recording fees increased by $50 from $350 to $400. Recording fees are set by the government. Under TRID tolerance rules, is this increase allowed?
- → A borrower receives a Loan Estimate and notices that the estimated title insurance fee is $1,200. At closing, the Closing Disclosure shows the title insurance fee is $1,400. The borrower was allowed to shop for title insurance from a list provided by the lender. Under TRID tolerance rules, is this increase permissible?
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A seller's home is rumored to be haunted after a local television segment featured it. Physical inspections show no defects. The seller asks the listing agent whether to disclose the reputation. The agent's best response is that disclosure obligations for such stigma
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A buyer asks the listing agent whether the property is in a neighborhood with registered sex offenders. The agent personally knows a registered offender lives two doors away. Under Megan's Law principles, the agent should