Disclosures and Environmental Practice Questions: Hazards, Reports and Duties
Property disclosures and environmental issues account for nine scored National questions on the Texas sales agent exam. Practice here with 16 original questions on hazards, site assessments and disclosure duties, each with an explanation and source links. Six separate Texas examples cover known defects, seller notices and other state rules. Those examples do not affect your National quiz score.
16 questions on disclosures & environmental, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.
16 questions
~12 min
National practice only
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Work through the questions at your own pace.
Choose an answer mentally, then open its explanation. Each question has a source and a point to watch. These are original practice questions, not Pearson VUE exam items or a prediction of your result.
1
No lead test does not mean no disclosure
An ordinary sale of a 1975 single-family home is covered by the federal lead-disclosure rule. The seller has no known lead information or reports and has never tested the home. What is required before the buyer becomes obligated?
A.Test every painted surface before making disclosures
B.Complete the required lead-disclosure process
C.Remove the original paint before accepting an offer
D.Replace disclosure with a general home warranty
Check answer and explanation
Correct answer: B. Complete the required lead-disclosure process
Lack of knowledge does not excuse the disclosure process. The seller states the lack of known information and records, provides an EPA-approved pamphlet, and completes the required contract warnings and acknowledgments. An inspection opportunity also applies, with written waiver or timing changes allowed. This disclosure rule does not itself require testing or removal.
Why the other choices miss:
A. Test every painted surface before making disclosures: The federal disclosure rule does not itself require a new test. It still requires the seller to complete the process and state the lack of known information.
C. Remove the original paint before accepting an offer: Removal is not a condition of this disclosure process. A covered sale requires the specified information and acknowledgments even without abatement.
D. Replace disclosure with a general home warranty: A general home warranty does not replace the federal pamphlet, statements, acknowledgments or applicable inspection opportunity.
Watch for this: The question says the sale is covered. Do not invent an exemption because no test was done.
A properly conducted home radon test measures 4 pCi/L. What does EPA guidance recommend at that level?
A.Treat it as a guarantee of safe indoor air
B.Rely on the absence of an unusual odor
C.Wait until the reading reaches 10 pCi/L
D.Take action to reduce the radon level
Check answer and explanation
Correct answer: D. Take action to reduce the radon level
EPA recommends fixing a home at 4 pCi/L or above and considering action between 2 and 4 pCi/L. The action level is not a boundary below which exposure is risk-free. It is health guidance, not proof that every sale has the same testing or disclosure requirement.
Why the other choices miss:
A. Treat it as a guarantee of safe indoor air: The action level is not a guarantee of safety. EPA recognizes risk below four pCi/L as well.
B. Rely on the absence of an unusual odor: Radon cannot be ruled out by the absence of an odor. The question gives a test result that calls for action under EPA guidance.
C. Wait until the reading reaches 10 pCi/L: EPA's recommended action level is four pCi/L, not ten. Waiting for the higher number ignores the stated guidance.
Watch for this: A recommended action level is not an automatic legal requirement to test every home sale.
A factory proposes a point-source discharge of pollutants through a pipe into waters of the United States. No exception applies. Which federal program is the match?
A.Clean Water Act: NPDES
B.Clean Air Act permits
C.CERCLA cleanup
D.Title X disclosures
Check answer and explanation
Correct answer: A. Clean Water Act: NPDES
The National Pollutant Discharge Elimination System regulates covered pollutant discharges from point sources to waters of the United States. EPA or an authorized state administers the permit. Sending wastewater to a municipal sewer presents a different regulatory question.
Why the other choices miss:
B. Clean Air Act permits: An air-quality permit concerns emissions into air. This question describes a pollutant discharge through a pipe into jurisdictional water.
C. CERCLA cleanup: CERCLA addresses hazardous-substance release liability and response. It is not the permit program for the stated point-source discharge.
D. Title X disclosures: Title X concerns residential lead-based-paint disclosure. It does not authorize an industrial discharge into water.
Watch for this: Read both the discharge source and the receiving water; not every wet location is federally jurisdictional.
A developer proposes discharging fill into wetlands confirmed to be waters of the United States. The activity has no applicable exemption. Which federal authorization must be addressed?
A.A lead-disclosure acknowledgment
B.An air-quality operating permit
C.Clean Water Act Section 404 authorization
D.A Superfund liability settlement
Check answer and explanation
Correct answer: C. Clean Water Act Section 404 authorization
Section 404 regulates discharges of dredged or fill material into jurisdictional waters, including covered wetlands. The facts establish jurisdiction and remove the exemption question. In a real project, the appropriate permitting authority must determine the applicable permit path; wet ground alone does not answer that question.
Why the other choices miss:
A. A lead-disclosure acknowledgment: A lead acknowledgment documents disclosure in covered housing. It does not authorize discharge of fill into jurisdictional waters.
B. An air-quality operating permit: An air-quality operating permit addresses air emissions. The proposed activity here is discharge of fill into wetlands.
D. A Superfund liability settlement: A Superfund settlement concerns cleanup liability or response obligations. It does not replace the required Section 404 authorization.
Watch for this: Neither 'all wetlands are unbuildable' nor 'a local building permit is enough' is a sound general rule.
A purchaser wants to satisfy all appropriate inquiries before acquisition for a potential CERCLA liability protection. Which timing statement matches the federal AAI rule?
A.Finish all inquiries within one year after closing
B.A report has no age limit if ownership is unchanged
C.Repeat every inquiry within 30 days before closing
D.Use the one-year window and 180-day component updates
Check answer and explanation
Correct answer: D. Use the one-year window and 180-day component updates
AAI must be conducted within the year before acquisition. Specified components must be conducted or updated within 180 days, including interviews, lien searches, government-record reviews, visual inspections and the environmental professional's declaration. Completing AAI is not automatic immunity; the claimed protection has other requirements and continuing obligations.
Why the other choices miss:
A. Finish all inquiries within one year after closing: The inquiry must precede acquisition for the protection described. Finishing it after closing does not satisfy that pre-acquisition requirement.
B. A report has no age limit if ownership is unchanged: Unchanged ownership does not remove the rule's age limits. The purchaser must check when the required work was performed.
C. Repeat every inquiry within 30 days before closing: The rule does not require every inquiry to be repeated within thirty days. It uses a one-year window with specified 180-day components.
Watch for this: Check when the work was done, not just the date printed on the report cover.
A site review identifies a possible solvent release. An environmental professional recommends targeted soil and groundwater sampling to investigate it. Which assessment normally performs that work?
A.Phase I environmental site assessment
B.Phase II environmental site assessment
C.A NEPA environmental impact statement
D.A FEMA flood-map determination
Check answer and explanation
Correct answer: B. Phase II environmental site assessment
Phase II uses sampling and analysis to investigate identified concerns. Phase I ordinarily relies on records, interviews and site observation rather than sampling. An environmental impact statement is a different federal review document for proposed agency actions meeting NEPA's review thresholds, not the next name for a Phase II.
Why the other choices miss:
A. Phase I environmental site assessment: Phase I ordinarily uses records, interviews and observation. Targeted soil and groundwater sampling is the Phase II work described.
C. A NEPA environmental impact statement: A NEPA impact statement evaluates a qualifying proposed federal agency action. It is not another name for this site's sampling investigation.
D. A FEMA flood-map determination: A flood-map determination identifies mapped flood risk. It does not investigate a possible solvent release by sampling soil and groundwater.
Watch for this: A Phase I is not a guarantee that every indoor hazard, such as mold or radon, has been tested.
A service station's regulated underground tank leaks ordinary gasoline. Which federal framework specifically regulates petroleum underground storage tanks?
A.RCRA Subtitle I and UST rules
B.CERCLA alone
C.Title X disclosure rules
D.NPDES permits alone
Check answer and explanation
Correct answer: A. RCRA Subtitle I and UST rules
The federal UST program under RCRA Subtitle I regulates petroleum tanks, with state programs also important. CERCLA generally excludes petroleum from its hazardous-substance definition. That exclusion is not a release from cleanup duties; separately added hazardous substances or other contamination can change the analysis.
Why the other choices miss:
B. CERCLA alone: CERCLA's general petroleum exclusion makes it an incomplete answer for ordinary gasoline. The UST program directly addresses the regulated tank.
C. Title X disclosure rules: Title X concerns lead-paint disclosure in covered housing. It does not regulate a gasoline tank's operation or leak response.
D. NPDES permits alone: NPDES addresses covered point-source discharges into jurisdictional waters. It is not the entire regulatory framework for petroleum storage tanks.
Watch for this: First identify what leaked. Do not treat every contaminated site as the same CERCLA fact pattern.
Which status is expressly one of CERCLA Section 107's potentially responsible party classes, even if that person did not personally cause the contamination?
A.An unrelated neighboring landowner
B.An appraiser with no ownership or operating role
C.The facility's current owner or operator
D.A buyer who only viewed the property
Check answer and explanation
Correct answer: C. The facility's current owner or operator
Current owners and operators are a listed class. The others include owners or operators at disposal, qualifying arrangers, and transporters who selected the site. Liability can be strict and retroactive, and joint and several for indivisible harm. A particular claim still requires the legal elements, with applicable defenses and protections considered.
Why the other choices miss:
A. An unrelated neighboring landowner: Being an unrelated neighbor alone is not one of the listed classes. Other facts would be needed to establish a covered role.
B. An appraiser with no ownership or operating role: An appraiser does not become a responsible party merely by appraising the property. The question excludes an ownership or operating role.
D. A buyer who only viewed the property: Viewing a property without acquiring or operating it does not itself place a person in a listed responsible-party class.
Watch for this: 'I did not cause it' is not, by itself, a complete defense for an owner.
In a covered lead-disclosure sale, the listing agent properly informs the seller of the federal obligations. The seller conceals known lead hazards from that agent. What does Section 745.115(b) protect the agent against?
A.Every claim relating to the property's condition
B.Liability for the seller's undisclosed lead knowledge
C.Responsibility for the agent's own false statements
D.The need to ensure the required paperwork is completed
Check answer and explanation
Correct answer: B. Liability for the seller's undisclosed lead knowledge
The subsection protects an agent who properly informed the seller from liability for failing to disclose seller-known lead information withheld from the agent. It does not remove the agent's separate duty to ensure compliance or excuse the agent's own concealment or misrepresentation.
Why the other choices miss:
A. Every claim relating to the property's condition: The provision protects against a particular failure involving information withheld by the seller. It does not grant immunity from every condition-related claim.
C. Responsibility for the agent's own false statements: The protection does not excuse an agent's own false statements. Seller-withheld information and the agent's own conduct are different issues.
D. The need to ensure the required paperwork is completed: The agent retains the separate compliance duty. Informing the seller does not eliminate responsibility for the required process.
Watch for this: A narrow protection for withheld information is not blanket immunity.
A buyer proves a knowing violation of the federal lead-disclosure rule and $8,000 in damages caused by it. What is three times those damages under Section 745.118(c), before any separately awarded fees?
A.$8,000
B.$16,000
C.$32,000
D.$24,000
Check answer and explanation
Correct answer: D. $24,000
Three times $8,000 is $24,000. The provision ties civil liability to a knowing violation and damages incurred; it is not a fixed payment for every incomplete form. Government enforcement is separate, and an actual claim requires proof of its elements.
Why the other choices miss:
A. $8,000: This is the original damages amount. The question asks for three times that amount under the specified provision.
B. $16,000: This doubles the damages. Treble damages means multiplying the proven amount by three, not by two.
C. $32,000: This multiplies the damages by four. Do not add three copies to the original amount when the rule calls for three times the amount.
Watch for this: Treble damages means three times the damages, not the original amount plus three more copies.
A home has confirmed asbestos-containing material in good condition. It will not be disturbed by use or remodeling. Which response matches EPA guidance?
A.Sand the surface to check whether it sheds fibers
B.Remove the material before any home can be sold
C.Leave it undisturbed and monitor its condition
D.Drill a sample without involving a specialist
Check answer and explanation
Correct answer: C. Leave it undisturbed and monitor its condition
EPA generally advises leaving sound, undisturbed asbestos-containing material alone. Damage or disturbance can release fibers. If it deteriorates or work will disturb it, obtain advice from a trained asbestos professional. This safety guidance does not decide separate disclosure, renovation or local-law requirements.
Why the other choices miss:
A. Sand the surface to check whether it sheds fibers: Sanding can disturb the material and release fibers. It contradicts the supplied facts supporting leaving sound material undisturbed.
B. Remove the material before any home can be sold: EPA does not recommend universal removal before every sale. The condition of the material and likelihood of disturbance matter.
D. Drill a sample without involving a specialist: Drilling can release fibers and is not the appropriate do-it-yourself response. Use trained professional advice when investigation or disturbance is needed.
Watch for this: Identifying asbestos is not the same as deciding that immediate removal is the safest response.
Mold returns on a wall after a plumbing leak. The proposed repair is to repaint while leaving the leak unresolved. What essential step is missing?
A.Fix the moisture source and address the mold
B.Choose a darker paint to cover the staining
C.Wait for the wall to stop smelling before closing
D.Treat a fresh coat as proof of successful cleanup
Check answer and explanation
Correct answer: A. Fix the moisture source and address the mold
EPA's guidance puts moisture control and mold cleanup together. Repainting a moldy, damp surface is not a substitute for either. The size, cause and extent of the problem determine the appropriate professional help; this question is not a remediation plan or a health diagnosis.
Why the other choices miss:
B. Choose a darker paint to cover the staining: A darker paint changes appearance without fixing the leak or addressing the mold. It does not resolve the stated problem.
C. Wait for the wall to stop smelling before closing: The absence of an odor does not establish that the moisture source and mold have been addressed. Waiting does not repair the leak.
D. Treat a fresh coat as proof of successful cleanup: A fresh coat is not proof of successful cleanup. The underlying moisture problem must be corrected.
Watch for this: A clean-looking surface does not establish that the underlying problem has been corrected.
A home is outside the mapped high-risk flood area. The buyer assumes this guarantees no flooding and that ordinary homeowners insurance covers flood damage. Which correction is sound?
A.A lower-risk designation guarantees no future flood
C.Flood insurance is available only in high-risk areas
D.Flood risk remains; check separate flood coverage
Check answer and explanation
Correct answer: D. Flood risk remains; check separate flood coverage
Flooding can occur outside high-risk zones. Most homeowners policies do not cover flood damage, so review the actual policy and flood-insurance options. Map designations, lender requirements and insurance coverage answer different questions; a map is not a property warranty.
Why the other choices miss:
A. A lower-risk designation guarantees no future flood: A lower mapped risk does not guarantee that flooding will never occur. Maps and property conditions do not eliminate all flood risk.
B. Every homeowners policy automatically covers floods: Most homeowners policies do not cover flood damage. The buyer should examine the actual policy and separate flood coverage.
C. Flood insurance is available only in high-risk areas: Flood insurance is not limited to mapped high-risk areas. Eligibility and available coverage must be checked for the property.
Watch for this: 'Not required by this lender' and 'not worth considering' are different conclusions.
In a covered pre-1978 sale, the buyer signs a written waiver of the federal lead inspection opportunity. Which requirement remains?
A.The seller must remove all lead before closing
B.The buyer must still take exactly ten days to inspect
C.The required disclosures and contract acknowledgments
D.The seller must obtain a new lead-free certification
Check answer and explanation
Correct answer: C. The required disclosures and contract acknowledgments
A purchaser can waive the inspection opportunity in writing. The parties can also agree in writing to a different inspection period. Neither change removes the required known-information disclosures, available reports, pamphlet or contract acknowledgments.
Why the other choices miss:
A. The seller must remove all lead before closing: The inspection waiver does not impose a universal lead-removal requirement. Disclosure and abatement are separate matters.
B. The buyer must still take exactly ten days to inspect: The buyer can waive the opportunity in writing, and the parties can agree in writing to a different period. Exactly ten days is not unavoidable.
D. The seller must obtain a new lead-free certification: The rule does not require a new lead-free certification merely because the purchaser waived the inspection opportunity.
Watch for this: Do not confuse this specific federal opportunity with a general inspection contingency or a Texas option period.
A lease is not the same as a lead-inspection right
A new one-year lease of a 1970 house is covered by the federal lead-disclosure rule. Which statement correctly separates a tenant's rights from a purchaser's rights under this rule?
A.Disclosures apply, but the ten-day purchaser right does not
B.No disclosure is required unless the tenant has a young child
C.The landlord must give the tenant a ten-day purchase inspection period
D.The tenant must pay for abatement before receiving the pamphlet
Check answer and explanation
Correct answer: A. Disclosures apply, but the ten-day purchaser right does not
Covered tenants receive the required lead disclosures, available records, pamphlet and lease acknowledgments before becoming obligated. The ten-day evaluation opportunity in Section 745.110 is for purchasers, not a federal rental inspection period. Other laws and the lease can create additional rights.
Why the other choices miss:
B. No disclosure is required unless the tenant has a young child: Covered rental disclosures are not triggered only by a tenant having a young child. The question expressly establishes a covered lease.
C. The landlord must give the tenant a ten-day purchase inspection period: The ten-day opportunity is a purchaser provision. It does not create an equivalent federal period for this tenant.
D. The tenant must pay for abatement before receiving the pamphlet: Receiving the required pamphlet is not conditioned on paying for abatement. The disclosure rule does not itself require that cleanup.
Watch for this: Lead-disclosure duties cover sales and leases, but not every provision applies to both in the same way.
A seller's condition statement reports no known roof leaks. The buyer wants an independent assessment of the roof's present condition. Which step provides that different type of information?
A.Treat the seller's statement as a roof warranty
B.Arrange an independent property inspection
C.Use the title policy to establish roof condition
D.Assume a lender's appraisal replaces inspection
Check answer and explanation
Correct answer: B. Arrange an independent property inspection
An independent inspection evaluates physical condition; a seller's statement reports the seller's knowledge under the applicable disclosure process. Neither an appraisal nor title insurance replaces that inspection. The contract determines available inspection rights and remedies, and specialist follow-up may be needed.
Why the other choices miss:
A. Treat the seller's statement as a roof warranty: The seller's report of no known leak is not a warranty that the roof has no defect. An independent condition assessment serves a different purpose.
C. Use the title policy to establish roof condition: Title insurance concerns covered ownership risks. It does not establish the roof's physical condition.
D. Assume a lender's appraisal replaces inspection: A lender's appraisal serves a valuation purpose. It is not a replacement for the buyer's independent inspection.
Watch for this: A report of no known problem is not proof that no problem exists.
Rule: Property due diligence; inspection versus disclosure
Work must fall within the year before acquisition, with specified components conducted or updated within 180 days. Timing alone does not establish a liability protection.
Addresses that seller notice. It does not erase the agent's separate duty concerning known significant defects.
Follow a link to the question, then open its answer for the explanation, wrong-choice reasons and sources. Site conditions need appropriate professional assessment, not diagnosis by a sales agent.
Optional supplement · Texas-specific applications
6 Texas rules to keep separate.
These examples require Texas form or statutory knowledge. They are not included in the National quiz or its score. If you only need National practice, you can skip to the study resources.
1
The seller asks the agent to hide a defect
A Texas listing agent knows a hidden foundation defect would significantly affect a reasonable buyer's decision. The seller instructs the agent to stay silent. What should the agent do?
A.Wait for the buyer's inspector to find it
B.Follow the instruction as a confidential request
C.Disclose the known significant defect and involve the broker
D.Make disclosure depend on receiving a full-price offer
Check answer and explanation
Correct answer: C. Disclose the known significant defect and involve the broker
Section 1101.652(b)(4) addresses failure to disclose a known defect described in (b)(3), which includes a significant latent structural defect. A seller's instruction does not override that duty. Involving the sponsoring broker supports proper handling; it does not make disclosure optional.
Why the other choices miss:
A. Wait for the buyer's inspector to find it: Waiting for an inspector to discover the issue does not fulfill the agent's separate duty concerning the known significant defect.
B. Follow the instruction as a confidential request: A confidentiality instruction cannot authorize knowing concealment of a defect covered by the agent's disclosure duty.
D. Make disclosure depend on receiving a full-price offer: The disclosure duty does not depend on the offered price. A full-price condition would improperly make required disclosure optional.
Watch for this: A buyer's opportunity to inspect does not excuse the agent's knowing concealment.
A Texas transfer is exempt from the seller notice under Property Code 5.008(e). The listing agent knows of a significant hidden structural defect. What does the notice exemption change?
A.The seller's notice requirement, not the agent's separate known-defect duty
B.The agent's duty to disclose every known significant defect
C.The physical condition of the property being transferred
D.The buyer's independent rights under every contract term
Check answer and explanation
Correct answer: A. The seller's notice requirement, not the agent's separate known-defect duty
The exemption concerns that statutory seller notice. The license holder's separate duty concerning known significant defects remains. Do not infer that every other federal or state disclosure obligation disappears because one notice is exempt.
Why the other choices miss:
B. The agent's duty to disclose every known significant defect: The exemption concerns the seller's statutory notice. It does not remove the license holder's separate duty about the known significant defect.
C. The physical condition of the property being transferred: Exemption from a notice requirement changes paperwork obligations, not the property's actual structural condition.
D. The buyer's independent rights under every contract term: The exemption does not rewrite the buyer's independent contract rights. Read those terms separately.
Watch for this: Identify whose duty and which notice the exemption addresses.
A previous occupant died by suicide in a Texas home. Under Property Code 5.008(c), what duty do the seller and seller's agent have to disclose that fact?
A.Disclosure is required in every residential sale
B.The statute imposes no duty to disclose the suicide
C.Disclosure depends on the listing price
D.Disclosure is required only for a cash buyer
Check answer and explanation
Correct answer: B. The statute imposes no duty to disclose the suicide
The statute removes the disclosure duty for natural death, suicide, and an accident unrelated to the property's condition. It does not cover every death or excuse hiding a dangerous property condition. A no-duty provision is not a reason to invent an answer or make a false assurance.
Why the other choices miss:
A. Disclosure is required in every residential sale: Section 5.008(c) removes the specified disclosure duty for suicide. Do not replace that provision with a universal disclosure rule.
C. Disclosure depends on the listing price: The listing price does not determine whether this specific no-duty provision applies. The category of death matters.
D. Disclosure is required only for a cash buyer: The buyer's financing method does not alter the stated suicide-disclosure rule. A cash purchase is not its trigger.
Watch for this: Read the exact category. Do not generalize this rule to a fatal accident caused by a property defect.
A buyer of a Texas single-family home asks whether registered sex offenders live nearby. Which response is the most useful and avoids an unsupported assurance?
A.Guarantee that no registrants live in the area
B.Describe the neighborhood as completely safe
C.Give an unofficial list recalled from past sales
D.Direct the buyer to the Texas DPS public registry
Check answer and explanation
Correct answer: D. Direct the buyer to the Texas DPS public registry
Article 62.056(e) removes the specified residential real estate disclosure duty about registrants. DPS maintains the official public registration database. Directing the buyer there is a useful next step, not a guarantee that any neighborhood is safe or that a search is a complete risk assessment.
Why the other choices miss:
A. Guarantee that no registrants live in the area: The agent cannot support a guarantee about current registrants from memory or silence. Direct the buyer to the official public records.
B. Describe the neighborhood as completely safe: A registration search is not a complete assessment of neighborhood safety. The agent should not make that unsupported assurance.
C. Give an unofficial list recalled from past sales: A remembered list may be outdated or incomplete. The official DPS database provides a better source for the buyer's inquiry.
Watch for this: The no-duty rule does not turn the agent's memory into a reliable substitute for current public records.
A Texas seller knows a material defect and withholds it to induce a consumer to buy. The consumer would not enter the transaction if told. Which provision directly describes this nondisclosure pattern?
Section 17.46(b)(24) addresses known information withheld with the stated intent and effect on the consumer's decision. Section 17.49(c)(2) and the broker-specific (i)(2) preserve this conduct as an exception to their exemptions. This identifies the provision, not every element or remedy of a successful private lawsuit.
Why the other choices miss:
A. Property Code 5.008(c)'s death-disclosure exception: The death-disclosure exception addresses a different fact pattern. It does not describe withholding a known defect to induce a purchase.
B. CERCLA Section 107's cleanup-liability classes: CERCLA identifies environmental cleanup-liability classes. This question instead asks about intentional consumer nondisclosure.
D. The federal lead inspection-waiver provision: Waiving a lead-inspection opportunity is a different provision. It does not authorize intentionally withholding the material information described.
Watch for this: Do not label every incomplete answer a proven DTPA claim. Knowledge, intent, consumer status and the claim's other requirements matter.
Rule: Texas Business and Commerce Code 17.46(b)(24); 17.49(c)(2), (i)(2)
A visible defect does not excuse a false statement
A Texas listing agent knows about a significant roof defect visible to the buyer but falsely says the roof is sound. Does visibility excuse the agent's misrepresentation?
A.No; a patent defect does not authorize a false statement
B.Yes; only hidden defects can ever be significant
C.Yes; a buyer must disregard every statement about visible conditions
D.No; every visible defect automatically proves all civil damages
Check answer and explanation
Correct answer: A. No; a patent defect does not authorize a false statement
Section 1101.652(b)(3) addresses material misrepresentation about a known significant defect, including latent structural defects. It is not limited to hidden defects. A civil claim's reliance, causation, defenses and damages are separate questions from the conduct described here.
Why the other choices miss:
B. Yes; only hidden defects can ever be significant: The material-misrepresentation provision is not confined to hidden defects. A significant visible defect can still be misrepresented.
C. Yes; a buyer must disregard every statement about visible conditions: Visibility does not give an agent permission to make a knowingly false statement. Civil reliance issues are separate questions.
D. No; every visible defect automatically proves all civil damages: The conduct does not automatically establish every civil element or damages amount. Those require the applicable claim and proof.
Watch for this: Patent means observable. It does not mean legally irrelevant or safe to misrepresent.
Keep the seller's notice separate from the agent's duty.
A seller-notice exemption does not automatically remove a license holder's duty concerning known significant defects. In a real transaction, involve the sponsoring broker and obtain appropriate legal or environmental advice when the facts are uncertain.
The official topic has 9 scored items. The counts below describe our 16-question sample, not a promise of which questions you will see. The Texas bonus examples are excluded.
Disclosures & Environmental: official allocation and free practice coverage
National subtopic
Exam items
Our questions
Property conditions and environmental issues
5
10
Environmental and property disclosure obligations and liability
4
6
A sample is not complete coverage of every possible question. See Pearson VUE's Salesperson outline, section VI. Sources beside each answer explain the underlying principle. Texas-specific rules and examples link to their own authority.
Start with the facts: What condition is present? What does the person know? Which rule applies? Testing a property, reporting what is known and fixing a problem are three different tasks.
Read the role and the transaction before applying a deadline. A purchaser's lead-inspection opportunity is different from a tenant's disclosure rights. A seller-notice exemption is different from an agent's duty to disclose a known significant defect. Keep the federal and Texas rules in their own settings.
Choose what to study next.
Start with the lesson behind a missed question, then try another problem without notes.
How many disclosure and environmental questions are on the exam?
The Salesperson National outline assigns nine scored items: five on property conditions and environmental issues, and four on disclosure obligations and liability. This sample contains 16 National questions, with six separate Texas examples excluded from its score.
Are these actual Pearson VUE exam questions?
No. They are original questions using hypothetical facts and sourced rules. They are not live exam items, have not been calibrated to Pearson's difficulty, and do not cover every skill in the outline. Your score measures this set, not your probability of passing.
Does every pre-1978 property require the same lead disclosure?
No. Check the federal definition of target housing and the transaction exemptions first. For example, foreclosure sales have an exemption. A covered sale still requires the disclosure process when the seller has no known lead information. The question must establish which situation applies.
Does a Phase I guarantee protection from cleanup liability?
No. A compliant Phase I can support all appropriate inquiries, but timing, the particular statutory protection and continuing obligations also matter. Its scope is not a guarantee that every indoor hazard has been tested. Read the assessment scope before relying on it.
Can a buyer waive the lead inspection opportunity?
Yes, in writing. The parties can also agree in writing to a different period instead of the default ten days. The waiver does not waive required lead disclosures. The federal ten-day opportunity is for purchasers, not a matching right for every tenant.
Does a seller's disclosure replace a home inspection?
No. A disclosure reports what the seller knows under the applicable process. An inspection evaluates physical condition within the inspector's scope. Neither guarantees that every defect will be found. Use the contract to check inspection rights and remedies, and obtain specialist follow-up when a finding calls for it.
Does CERCLA's petroleum exclusion mean a leaking tank can be ignored?
No. Ordinary petroleum generally falls outside CERCLA's hazardous-substance definition, but regulated underground tanks have a separate federal program under RCRA Subtitle I and applicable state requirements. Separately added hazardous substances can also change the CERCLA analysis. Identify the material and regulatory program before choosing the rule.
What happens if I continue in the app?
Choose the browser or mobile app and sign in to save practice completed there. Selected activities are free; full access is paid. This topic-quiz score cannot yet be saved to your account. Note your weak topics before leaving; all questions on this page remain free to read.
Sources and review notes
Last reviewed: . Pearson VUE supplies the topic allocation, not these questions. Federal regulations and EPA, FEMA/NFIP and CFPB guidance support the National principles. Texas statutes support the separate state examples. The Texas seller-notice source is also a labeled illustration of why disclosure does not replace inspection, not a nationwide form requirement. Scenarios are hypothetical, not reported transactions. This page is exam preparation, not advice for a transaction.
Use the source beside an answer to check the specific rule.
