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Negative physical elements of a property such as mold are disclosed in the:

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Question & Answer

Review the question and all answer choices

A

Transfer Disclosure Statement (TDS).

A is incorrect because the Transfer Disclosure Statement (TDS) is completed by sellers but is provided to buyers as part of the purchase transaction, not part of the listing agreement itself.

B

listing agreement.

Correct Answer
C

advertisements referencing the property.

C is incorrect because advertisements typically focus on positive features and are not the appropriate place for disclosing negative physical elements like mold.

D

preliminary title report.

D is incorrect because the preliminary title report addresses ownership issues, liens, and encumbrances, not physical property conditions like mold.

Why is this correct?

B is correct because the listing agreement is the contract where sellers must disclose known material defects, including mold, to potential buyers. This is a fundamental requirement in California real estate practice that establishes the seller's obligation to reveal property issues.

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