Module 6 of 13 / National concepts

Property conditions and disclosures

Separate what is known from what needs inspection, and make timely disclosures about material conditions.

Outline allocation: 9 of 80 scored questions. Reviewed October 15, 2026.

What you will learn

Identify material physical and environmental risks.
Apply federal lead disclosure requirements.
Distinguish disclosure from warranty and inspection.

Material facts and the inspection boundary

A material condition can affect value, desirability or safety. A latent defect is not readily apparent; a patent defect is observable. Disclosure of known material facts is not replaced by an as-is clause or by telling a buyer to inspect. A disclosure statement reports information; it is not an engineering opinion or a guarantee. Recommend qualified inspection when evidence exceeds your expertise and never convert an unverified statement into a claimed fact. Source note: California DRE chapters support general concepts only; use the Pennsylvania modules and linked Pennsylvania authorities for state-specific rules.

Work through an example

Fresh paint does not answer a question about recurring basement flooding. Disclose the known history and let qualified specialists evaluate the cause.

Remember: As-is addresses contractual condition; it does not authorize concealment.

Pre-1978 lead disclosure

For most covered housing built before 1978, sellers and lessors must disclose known lead-based paint information and available reports, provide the approved information pamphlet and include required contract disclosures. Buyers generally receive a ten-day opportunity for a lead inspection or risk assessment unless the parties agree in writing to a different period or the buyer waives it in writing. This federal disclosure rule does not itself require every seller to conduct a lead test. Rental and sale requirements differ.

Work through an example

A 1965 house with no known test results still needs the applicable lead disclosures; unknown is not the same as certified lead-free.

Remember: Disclose known information and provide the opportunity; do not invent a test result.

Radon, asbestos, mold and contamination

Radon is a radioactive gas that requires testing to assess a particular building; it cannot be reliably detected by sight or smell. Asbestos risk depends in part on material condition and disturbance; avoid amateur removal advice. Moisture conditions can support mold and may indicate a building defect. Underground tanks, contaminated soil and groundwater require specialist evaluation. Environmental liability and cleanup obligations are separate from whether a property appears attractive.

Work through an example

A neighborhood radon map is not a measurement of the basement the buyer plans to occupy.

Remember: Identify the risk, disclose what is known and refer evaluation to a qualified professional.

Water, flood zones and land conditions

Flood risk can exist outside mapped high-risk areas. Flood insurance and hazard insurance are different products, and lender requirements depend on the loan and location. Private wells, septic systems, wetlands and drainage can affect use and costs. Verify permits, testing and applicable restrictions rather than assuming a past use was lawful. A buyer’s intended renovation may require approvals even if the existing building is lawful.

Work through an example

A seller’s statement that a basement has never flooded is not proof that a planned addition is outside regulated floodplain restrictions.

Remember: A disclosure, a map, a permit and an inspection answer different questions.

Check your understanding

Close your notes and explain the rule in your own words. Change one fact in an example: does the answer change? Use topic practice in the study room, then return to any rule you missed.

Practice in the study room →Next unit →

Sources and further reading

California DRE references support general national concepts only. Their California-specific rules are not Pennsylvania law; use the PA sources for state requirements.

Supplemental study only. State rules and transaction details matter; consult the linked official sources for the complete requirements. This lesson provides no prelicensing credit.