A form on which a seller discloses known material facts and defects about the condition of the property.
Why Seller's Property Disclosure Statement matters on the exam
This term belongs to Property Disclosures. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Seller's Property Disclosure Statement
Every Freehold question shows why the right answer is right — and cites its source.
The primary purpose of a seller's property disclosure statement is to:
Document the seller's actual knowledge of the property's condition for the buyer's benefit
Serve as a complete substitute for the professional home inspection a buyer would otherwise commission
Fully guarantee to the buyer that the property is completely free of all defects, latent or patent
Set the final negotiated sale price between the seller and the eventual buyer
Show answer & explanation
Document the seller's actual knowledge of the property's condition for the buyer's benefit — A seller's disclosure statement records what the seller actually knows about the property's condition, giving buyers information to inform their decision, but it is not a warranty or inspection substitute.
Source: PSI National Real Estate Exam Content Outline §6 Property Disclosures
Who is generally responsible for completing a seller's property disclosure statement?
The listing agent, based on the agent's professional judgment
The seller
The buyer's inspector, after the inspection is complete
The title company, based on public records
Show answer & explanation
The seller — The seller personally completes the disclosure statement because it reflects the seller's own actual knowledge; agents should not fill it out on the seller's behalf.
Source: PSI National Real Estate Exam Content Outline §6 Property Disclosures
A seller's property disclosure statement is best understood as:
A legally binding warranty covering all future repairs
An optional marketing brochure with no legal significance
A statement of the seller's knowledge, not a guarantee or warranty of the property's condition
A document that replaces the need for any buyer inspection
Show answer & explanation
A statement of the seller's knowledge, not a guarantee or warranty of the property's condition — The disclosure statement reflects what the seller currently knows about the property; it is not a warranty, so buyers should still conduct their own inspections.
Source: PSI National Real Estate Exam Content Outline §6 Property Disclosures
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