Difficulty: Easy

Average Score: 100%

According to Virginia law, a listing licensee (if she knows) MUST disclose to a prospective buyer of a house that the previous owner

Rationale

A listing licensee must disclose that the previous owner added the recreation room without a permit.

In Virginia, real estate law requires disclosure of material facts that could affect a buyer's decision. This includes any alterations made to a property without the necessary permits, as they can influence the safety, legality, and future value of the home.

A (was infected with AIDS.) YOUR ANSWER

Under Virginia law, the status of a previous owner regarding their health, including being infected with AIDS, is considered confidential medical information. Disclosure of such private health matters is not required and is protected to respect individual privacy.

B (was a registered sex offender.) YOUR ANSWER

While being a registered sex offender may be concerning, Virginia law does not mandate disclosure of this information by real estate agents. This information is publicly available through law enforcement, allowing buyers to conduct their own research without placing the burden on the listing licensee.

C (and his family were murdered in the house.) YOUR ANSWER

Although this might be perceived as a disturbing fact, Virginia law does not require disclosure of events such as murders or suicides that occurred in a property. Such incidents are considered stigmas rather than material facts affecting the physical condition or legality of the property.

D (added the recreation room without a permit.) CORRECT

This choice is correct as it constitutes a material fact related to the property’s condition and legal compliance. Unpermitted renovations can lead to significant issues, including fines, safety concerns, or complications in future transactions, making it essential for the listing licensee to disclose this information.

Conclusion

Virginia law emphasizes the necessity for disclosure of material facts that directly impact the property and its value. Among the options provided, the unpermitted addition of a recreation room is a critical detail that a prospective buyer must know to make informed decisions, while health-related and personal matters of the previous owner do not fall under mandatory disclosure requirements.

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