California Seller Property Disclosure exam
2026 questions and rationales answers
1. What is the primary purpose of a seller's property disclosure in California?
A. To guarantee the condition of the property
B. To disclose known material facts and defects affecting the property
C. To establish the property's market value
D. To replace the buyer's inspection
Rationale: Disclosure laws are intended to give buyers information about known material facts
that could affect their decision to purchase.
2. Which California form is commonly used by a seller to disclose known conditions of a
residential property?
A. Purchase Agreement
B. Transfer Disclosure Statement
C. Seller Property Questionnaire (SPQ)
D. Grant Deed
Rationale: The SPQ is commonly used to provide additional seller disclosures concerning the
property's condition and history.
3. Under California law, which statement best describes a seller's duty to disclose?
A. The seller only discloses defects specifically requested by the buyer
B. The seller must disclose only structural defects
C. The seller must disclose known material facts that may affect the property's value or
desirability
D. The seller has no duty if the property is sold "as is"
Rationale: An "as-is" provision generally does not eliminate the obligation to disclose known
material facts.
4. A material fact is best described as information that:
A. Is always related to price
B. Could influence a reasonable buyer's decision regarding the property
C. Is only known by the broker
D. Concerns only cosmetic conditions
Rationale: Material facts are facts that could reasonably affect a buyer's decision to purchase or
the terms of the transaction.
,5. When should a seller generally make required property disclosures?
A. Only after closing
B. At the final walk-through
C. As required by law and early enough for the buyer to consider the information
D. Only if the buyer asks
Rationale: Required disclosures should be provided within the legally required timeframe and
early enough to be meaningful.
6. Which party generally has the responsibility for providing seller disclosures?
A. The county assessor
B. The buyer's lender
C. The seller
D. The title company
Rationale: Seller disclosure obligations generally rest with the property owner, although agents
may have independent disclosure duties.
7. A seller knows that the roof leaks during heavy rain but does not disclose it. This is most
likely:
A. Acceptable if the buyer does not ask
B. Acceptable if the roof is old
C. A failure to disclose a known material defect
D. Acceptable under an "as-is" clause
Rationale: A known roof leak can materially affect the property's value and desirability and
should generally be disclosed.
8. Which statement about a seller's disclosure is TRUE?
A. It guarantees that no defects exist
B. It reports information known to the seller and does not replace professional inspections
C. It eliminates the buyer's duty to investigate
D. It establishes the property's appraised value
Rationale: Seller disclosures provide information but do not substitute for independent
inspections and investigations.
9. If a seller is unsure whether a condition should be disclosed, the safest approach is
generally to:
A. Ignore it
B. Ask the buyer not to investigate it
, C. Disclose the condition accurately and completely
D. Wait until closing
Rationale: When a potentially material condition is known, disclosure generally reduces the risk
of nondisclosure liability.
10. A seller's statement that a property has "no known defects" should be based on:
A. The broker's inspection
B. The appraiser's report
C. The seller's actual knowledge
D. The buyer's assumptions
Rationale: Seller disclosure responses should be truthful and based on the seller's knowledge.
11. Which item is most likely to be considered a material condition requiring disclosure?
A. Seller's favorite paint color
B. Known foundation problems
C. Seller's preferred landscaping style
D. Furniture arrangement
Rationale: Known foundation problems can significantly affect value, safety, and desirability.
12. If a seller discovers a significant defect after completing a disclosure form, the seller
should generally:
A. Keep the information private
B. Wait until closing
C. Update or supplement the disclosure as appropriate
D. Cancel the listing automatically
Rationale: Newly discovered material information should not be concealed from the buyer.
13. Which statement about "as-is" sales is correct?
A. They eliminate all disclosure obligations
B. They permit sellers to conceal defects
C. They generally do not excuse disclosure of known material facts
D. They prevent buyers from conducting inspections
Rationale: Contract language cannot generally be used as a license to conceal known material
information.
14. A seller knows that the property has recurring termite damage. The seller should:
A. Disclose it only if the buyer asks
B. Disclose the known condition
2026 questions and rationales answers
1. What is the primary purpose of a seller's property disclosure in California?
A. To guarantee the condition of the property
B. To disclose known material facts and defects affecting the property
C. To establish the property's market value
D. To replace the buyer's inspection
Rationale: Disclosure laws are intended to give buyers information about known material facts
that could affect their decision to purchase.
2. Which California form is commonly used by a seller to disclose known conditions of a
residential property?
A. Purchase Agreement
B. Transfer Disclosure Statement
C. Seller Property Questionnaire (SPQ)
D. Grant Deed
Rationale: The SPQ is commonly used to provide additional seller disclosures concerning the
property's condition and history.
3. Under California law, which statement best describes a seller's duty to disclose?
A. The seller only discloses defects specifically requested by the buyer
B. The seller must disclose only structural defects
C. The seller must disclose known material facts that may affect the property's value or
desirability
D. The seller has no duty if the property is sold "as is"
Rationale: An "as-is" provision generally does not eliminate the obligation to disclose known
material facts.
4. A material fact is best described as information that:
A. Is always related to price
B. Could influence a reasonable buyer's decision regarding the property
C. Is only known by the broker
D. Concerns only cosmetic conditions
Rationale: Material facts are facts that could reasonably affect a buyer's decision to purchase or
the terms of the transaction.
,5. When should a seller generally make required property disclosures?
A. Only after closing
B. At the final walk-through
C. As required by law and early enough for the buyer to consider the information
D. Only if the buyer asks
Rationale: Required disclosures should be provided within the legally required timeframe and
early enough to be meaningful.
6. Which party generally has the responsibility for providing seller disclosures?
A. The county assessor
B. The buyer's lender
C. The seller
D. The title company
Rationale: Seller disclosure obligations generally rest with the property owner, although agents
may have independent disclosure duties.
7. A seller knows that the roof leaks during heavy rain but does not disclose it. This is most
likely:
A. Acceptable if the buyer does not ask
B. Acceptable if the roof is old
C. A failure to disclose a known material defect
D. Acceptable under an "as-is" clause
Rationale: A known roof leak can materially affect the property's value and desirability and
should generally be disclosed.
8. Which statement about a seller's disclosure is TRUE?
A. It guarantees that no defects exist
B. It reports information known to the seller and does not replace professional inspections
C. It eliminates the buyer's duty to investigate
D. It establishes the property's appraised value
Rationale: Seller disclosures provide information but do not substitute for independent
inspections and investigations.
9. If a seller is unsure whether a condition should be disclosed, the safest approach is
generally to:
A. Ignore it
B. Ask the buyer not to investigate it
, C. Disclose the condition accurately and completely
D. Wait until closing
Rationale: When a potentially material condition is known, disclosure generally reduces the risk
of nondisclosure liability.
10. A seller's statement that a property has "no known defects" should be based on:
A. The broker's inspection
B. The appraiser's report
C. The seller's actual knowledge
D. The buyer's assumptions
Rationale: Seller disclosure responses should be truthful and based on the seller's knowledge.
11. Which item is most likely to be considered a material condition requiring disclosure?
A. Seller's favorite paint color
B. Known foundation problems
C. Seller's preferred landscaping style
D. Furniture arrangement
Rationale: Known foundation problems can significantly affect value, safety, and desirability.
12. If a seller discovers a significant defect after completing a disclosure form, the seller
should generally:
A. Keep the information private
B. Wait until closing
C. Update or supplement the disclosure as appropriate
D. Cancel the listing automatically
Rationale: Newly discovered material information should not be concealed from the buyer.
13. Which statement about "as-is" sales is correct?
A. They eliminate all disclosure obligations
B. They permit sellers to conceal defects
C. They generally do not excuse disclosure of known material facts
D. They prevent buyers from conducting inspections
Rationale: Contract language cannot generally be used as a license to conceal known material
information.
14. A seller knows that the property has recurring termite damage. The seller should:
A. Disclose it only if the buyer asks
B. Disclose the known condition
