PSI Virginia Real Estate Practice Exam

Which type of property condition could warrant further inspections?

1. Routine wear and tear of the property

2. Disclosures of known material defects

3. Alterations made by multiple owners

4. Nearby commercial construction

The correct answer is: Disclosures of known material defects

The correct answer is based on the significance of disclosures regarding known material defects in a property. When sellers disclose existing issues that could affect the property's value, safety, or functionality, these known defects require a closer inspection to assess their severity, potential costs for repairs, and implications for future ownership. Identifying material defects, such as structural issues, plumbing concerns, or electrical problems, is critical for buyers, as these factors can dramatically influence investment decisions and home safety. A thorough inspection following such disclosures provides buyers with the necessary information to either negotiate repairs or reconsider the purchase. On the other hand, routine wear and tear is a normal part of property life, and while it may affect aesthetic appeal, it generally does not indicate serious underlying issues. Alterations made by multiple owners can also raise concerns; however, the condition’s significance depends on what those alterations entail. Nearby commercial construction might impact the property's environment or value, but it does not necessarily necessitate a closer inspection of the property itself. Thus, the known material defects disclosed present the most immediate need for further inspection.