Difficulty: Easy

Average Score: 92%

Pursuant to the commission-approved Square Footage Disclosure, all of the following statements are correct EXCEPT

Rationale

The listing broker must measure the square footage of the property.

While it is common for brokers to provide square footage measurements, the commission-approved Square Footage Disclosure does not mandate that the listing broker must personally measure the property. Instead, buyers and sellers are encouraged to verify the square footage information independently.

A (The disclosure applies only to residential real estate) YOUR ANSWER

This statement is accurate as the Square Footage Disclosure is specifically designed for residential real estate transactions. It ensures that buyers and sellers in the residential sector are informed about square footage considerations, which differ from commercial real estate requirements.

B (Buyers and sellers are advised to verify square footage information) YOUR ANSWER

This statement is also correct. The disclosure emphasizes the importance of buyers and sellers verifying square footage measurements, as discrepancies can occur between reported values and actual measurements. This practice protects both parties in the transaction.

C (Square footage measurements are not for loan or valuation purposes) YOUR ANSWER

This statement is true because the Square Footage Disclosure clarifies that square footage measurements should not be relied upon for loan underwriting or property valuation. Instead, these measurements serve primarily for transparency in the residential sale process.

Conclusion

The commission-approved Square Footage Disclosure provides essential guidelines for understanding square footage in residential real estate transactions. While statements A, B, and C accurately reflect the intent and application of the disclosure, the assertion that "the listing broker must measure the square footage of the property" is incorrect. This highlights the necessity for buyers and sellers to independently verify square footage to ensure accuracy and transparency in their real estate dealings.

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