Affiliate Broker Tennessee (TN PSI) National Practice Exam `

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Affiliate Broker Tennessee National Exam. Practice with flashcards and multiple choice questions, with hints and explanations. Prepare well for your licensing exam!

Practice this question and more.

What is a common consequence of improperly disclosed property issues?

Increased buyer interest
Legal liability for the seller and agent
Higher appraisal values
No impact on sale

The correct answer is: Legal liability for the seller and agent

Improperly disclosed property issues can lead to significant legal consequences for both the seller and the agent involved in the transaction. When a seller fails to reveal known problems regarding the property, such as defects, damage, or environmental hazards, it violates the legal obligation of transparency and full disclosure. Consequently, if the buyer later discovers these undisclosed issues, they may have grounds to pursue legal action against the seller for misrepresentation or fraud. This can result in lawsuits, fines, or the need for the seller to compensate the buyer for any financial losses incurred due to the undisclosed problems. Furthermore, agents who facilitate such transactions can also face liability for not ensuring that all material facts are disclosed, which can damage their reputation and career. Overall, legal liability serves as a strong deterrent to non-disclosure practices in real estate, underscoring the importance of accurate and complete information sharing during a property transaction.