Idaho Real Estate Practice Exam

According to the Seller Property Disclosure Act, when are sellers required to make disclosures?

1. When selling a two unit residential property

2. Only in commercial property transactions

3. In any transaction involving at least three units

4. There are no requirements for sellers

The correct answer is: When selling a two unit residential property

The Seller Property Disclosure Act mandates that sellers provide disclosures when engaging in the sale of residential properties, particularly those that consist of two or more units. This requirement is crucial as it aims to ensure that potential buyers are informed about the condition of the property and any known issues before completing the transaction. In the case of selling a two-unit residential property, sellers must disclose relevant information that can impact a buyer's decision, such as structural problems, pest infestations, or environmental hazards. This fundamental obligation protects the buyer's interests and promotes transparency in real estate transactions. Other scenarios, such as commercial property transactions or properties with a different number of units, do not trigger the same disclosure requirements under this act. Thus, it would not be accurate to state that sellers are obligated to disclose only in commercial transactions or that there are no requirements at all. The focus on two-unit residential properties highlights the specific context in which the Seller Property Disclosure Act is applied.