medium · National Real Estate Exam disclosures

A buyer is looking at a home where the adjacent property is a derelict gas station with several visible underground storage tank vent pipes. The buyer's agent should treat this as:

1. A matter of external obsolescence that only affects the adjacent property and has no bearing on the subject property's value.
2. A violation of the Fair Housing Act because it makes the neighborhood less desirable for protected classes.
3. An environmental red flag that suggests potential soil or groundwater contamination on the subject property.
4. A confidential defect that the seller's agent must disclose only if the buyer signs a non-disclosure agreement.

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