PSI Virginia Real Estate Practice Exam

What does the Property Disclosure Statement notify the buyer about?

1. The seller's warranties on property conditions

2. The protections under the Chesapeake Bay Preservation Act

3. The absence of seller representations regarding property condition

4. The market value of the property

The correct answer is: The absence of seller representations regarding property condition

The Property Disclosure Statement serves a critical role in informing prospective buyers about the condition of the property being sold. When a seller provides this statement, it typically highlights that the seller is not making any representations regarding the property's condition. This means that buyers should not assume any warranties or guarantees about the state of the property based solely on what is stated or not stated in the disclosure. This transparency is essential; it encourages buyers to conduct their own due diligence and inspections to ascertain the true condition of the property. It is designed to protect sellers by clearly indicating that they are not responsible for any undisclosed issues that may arise after the sale. Therefore, buyers must ensure they understand they cannot rely on the seller's claims and should be proactive in evaluating the property themselves. The other options, although relevant to real estate, do not accurately capture the primary purpose of the Property Disclosure Statement, which focuses on clarifying the absence of seller representations regarding the property condition.