Which of the following must be disclosed under federal law in all residential real estate transactions?
Question & Answer
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Previous owners' names
Previous owners' names are not required under any federal disclosure law; while chain of title information is recorded publicly, no statute compels a seller to affirmatively disclose a list of prior owners to a buyer.
Known lead-based paint hazards in pre-1978 homes
The seller's purchase price
The seller's original purchase price is not a federally mandated disclosure; while it may be discoverable through public records in some states, federal law does not require sellers to reveal what they paid for the property.
Future development plans in the area
Future development plans are not subject to any federal disclosure mandate in residential transactions; while some states or localities may require certain municipal notices, there is no nationwide federal law compelling sellers to disclose planned nearby development.
Why is this correct?
Option B is correct because 42 U.S.C. § 4852d specifically mandates that sellers of residential property built before 1978 must disclose any known lead-based paint or lead-based paint hazards, provide available records or reports, and give buyers a federally approved pamphlet titled 'Protect Your Family From Lead in Your Home.' The law is enforced jointly by the EPA and HUD and applies to all 50 states without exception, making it one of the few truly universal federal residential disclosure requirements.
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