Maryland Home Improvement PSI Practice Exam

State laws may differ on whether a buyer must be informed about which of the following?

1. A suicide that occurred in the house last year.

2. Possible lead paint in the property.

3. The flooding of the basement every spring.

4. The fact that the sellers are getting a divorce.

The correct answer is: A suicide that occurred in the house last year.

In real estate transactions, the obligation to disclose certain events or conditions affecting a property can vary significantly by state. In many jurisdictions, certain stigmatizing events, like a suicide occurring in a house, may not necessarily need to be disclosed to potential buyers, as they are not typically considered material facts about the property that affect its physical condition or the safety of the buyers. This contrasts with other disclosure requirements, such as known lead paint presence, which is governed by federal law and requires sellers to inform buyers due to the health risks associated with lead exposure, especially in homes built before 1978. Similarly, recurring issues like basement flooding must be disclosed by sellers, as they reflect on the property's condition and could significantly impact a buyer's decision. A divorce situation related to the sellers does not impact the property itself and is generally not required to be disclosed since it does not affect the buyer's use or enjoyment of the home. Thus, the option regarding a suicide is accurate because, depending on state laws, this type of event may not create a legal obligation for sellers to disclose it, unlike the other options which are more directly related to the property's condition or health-related disclosures.