Iowa Real Estate Practice Exam

Before selling a property, an owner must disclose which item to potential buyers?

1. The asking price for the property

2. All pending court cases related to the property

3. Any known structural problems

4. The owner's personal financial information

The correct answer is: Any known structural problems

When selling a property, it is essential for the owner to disclose any known structural problems because this information directly affects the potential buyer's decision-making process and the overall value of the property. Buyers have the right to know about defects, damages, or issues that could pose safety concerns or lead to costly repairs. Not disclosing such issues can lead to legal repercussions for the seller, including potential claims of misrepresentation or fraud. In contrast, while the asking price, pending court cases, and the owner's personal finances might be relevant in different contexts, they are not universally mandated disclosures that must be provided to potential buyers. For instance, while an asking price is critical information for negotiations, it does not relate to the physical condition or safety of the property itself. Similarly, pending court cases may vary based on the nature and relevance to the buyer, and personal financial information is private and not typically disclosed in the property selling process. Therefore, the duty to inform buyers about structural problems is a clear component of responsible property sales and consumer protection laws.