PSI Exam Prep: Property Disclosures

Question 1

Standing water present more than 24 hours after heavy rain or ground sloping toward the house may indicate

Answer 1

drainage problems.

Question 2

Mulch mounded against a house or other structure with wood frame siding can hold moisture against the siding, leading to

Answer 2

wood rot.

Question 3

A sinkhole or settling beyond what’s typically expected may be a sign of mine subsidence (a gradual sinking or caving in),

Answer 3

underground storage tanks

Question 4

A vent pipe protruding from the ground may also be a sign of

Answer 4

an underground storage tank.

Question 5

Soft spots and mounds may indicate that the property was used for

Answer 5

waste disposal.

Question 6

it can help determine easements, encroachments, boundaries, and lot size.

Answer 6

An on-site survey

Question 7

it occurs when someone illegally places an object or structure on another person’s property.

Answer 7

An encroachment

Question 8

What is an easement?

Answer 8

Essentially this means that someone other than you could have access to the land

Question 9

How do you find known easements?

Answer 9

property’s deed and title history as well as subdivision maps

Question 10

What can encroachments and/or easements cause?

Answer 10

property’s enjoyment, use, and value.

Question 11

The presence of mud tunnels in walls may indicate

Answer 11

termite infestation.

Question 12

they leave behind a sawdust-like material called frass when they burrow through wood

Answer 12

Carpenter ants

Question 13

Many small holes through wooden beams could indicate the presence of

Answer 13

wood-boring beetles.

Question 14

Interior environmental hazards may include

Answer 14

radon, asbestos, and mold

Question 15

it occurs naturally in the environment and can be found in soil and well water.

Answer 15

Radon

Question 16

a fibrous material that becomes dangerous when it deteriorates and becomes friable (easily crumbled) was used in many materials before the 1970s because of its fire-retardant qualities. Inhaled particles can damage the lungs over time. Only licensed professionals should handle it

Answer 16

Asbestos

Question 17

it is promoted by excessive moisture and lack of air circulation.

Answer 17

Mold growth

Question 18

it can be found in paint, plumbing, dust, soil, and drinking water.
it causes many health issues, particularly among infants, children, and the elderly. In children, lead-related issues can include behavioral problems, learning disabilities, seizures, and even death.

Answer 18

lead

Question 19

this program lowers the property’s taxes for a set amount of time. These are typically offered for new construction or when a property lies in an area designated for rehabilitation or renovation. These are for elderly homeowners are also common.

Answer 19

tax abatements

Question 20

External environmental hazards may be difficult to detect. Most states require that sellers disclose known environmental issues, including

Answer 20

Underground storage tanks
Groundwater contamination
The presence of former waste disposal sites
Mining activities
Use of agricultural pesticides

Question 21

it is most often found in water and paint.

Answer 21

LEAD

Question 22

it is negative property information that could reduce the property’s value.

Answer 22

An adverse material fact

Question 23

it is a hidden property condition that’s not likely to be discovered through a general review or inspection.

Answer 23

A latent defect

Question 24

What does caveat emptor means?

Answer 24

“Buyer Be Aware” Non-Disclosure state

Question 25

what does disclosure of latent means?

Answer 25

not visible or easily detected in a cursory inspection

Question 26

These are locations where a death (either homicide or suicide), crime, or haunting or other paranormal activity occurred. Most states do not consider these disclosable issues, but a few states do.

Answer 26

Stigmatized properties

Question 27

What does MAAP means?

Answer 27

material, adverse, actually known, and related to physical condition.