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Mandated DisclosuresMEDIUMFREE

Which of the following must be disclosed under federal law in all residential real estate transactions?

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Question & Answer

Review the question and all answer choices

A

Previous owners' names

Previous owners' names are not required disclosure under federal law in residential real estate transactions. This information is considered private and protected by privacy laws. The federal disclosure requirements focus on property condition and known hazards, not historical ownership information. While state laws may vary, there is no federal mandate to disclose previous owners' identities in real estate transactions.

B

Known lead-based paint hazards in pre-1978 homes

Correct Answer
C

The seller's purchase price

The seller's purchase price is not a federally mandated disclosure. While it may be relevant to buyers, federal law does not require its disclosure in real estate transactions.

D

Future development plans in the area

Future development plans are typically governed by local or state disclosure laws, not federal requirements. Federal law does not mandate disclosure of planned developments in the area.

Why is this correct?

Option B is correct because the Residential Lead-Based Paint Hazard Reduction Act of 1992 specifically mandates disclosure of known lead-based paint hazards in homes built before 1978 for all residential real estate transactions involving such properties.

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