Idaho Real Estate Practice Exam

Under Idaho law, which of the following is true about a seller's obligations regarding known property conditions?

1. Seller disclosure is optional

2. Disclosure is required only for major issues

3. Disclosure of known property conditions is required by statute

4. Disclosure is only needed if the buyer requests it

The correct answer is: Disclosure of known property conditions is required by statute

In Idaho, the law mandates that sellers have a legal obligation to disclose known property conditions, making it a requirement under statute. This legislation aims to ensure transparency in real estate transactions, protecting buyers from potential hazards or defects that could affect their investment. Such disclosure covers a range of issues, from structural problems to environmental concerns or obligations that may affect the property. The requirement for disclosure is designed to foster trust and encourage informed decision-making among buyers, reducing the risk of disputes after the sale. Sellers must provide a detailed disclosure form outlining any known issues, creating an expectation of honesty and completeness in the information shared with prospective buyers. Therefore, the correct understanding of seller obligations rests with the statute that mandates disclosure of all known property conditions. This highlights the importance of lawful practices in real estate dealings in Idaho, ensuring that all parties are adequately informed before finalizing a transaction.