Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Should a seller and listing agent disclose a murder that occurred on the property to prospective purchasers?

1. Yes, it is necessary to disclose

2. No, it is not necessary to disclose

3. Only if specifically asked

4. Only if local laws require it

The correct answer is: Yes, it is necessary to disclose

Disclosing a murder that occurred on a property is important because it falls under the concept of material facts in real estate transactions. Material facts are those facts that could influence a buyer's decision to purchase a property. In many jurisdictions, including Texas, sellers and their agents have a duty to disclose certain events that could affect the value or desirability of the property. This includes significant incidents such as a murder or violent crime that occurred on the premises. By disclosing this information, the seller and listing agent ensure that prospective buyers are fully informed and can make decisions based on all relevant facts. This practice not only protects the integrity of the transaction but also helps to avoid potential legal issues that might arise from withholding such information. Transparency in real estate transactions is critical to fostering trust between parties and maintaining ethical standards in the industry. In contrast, the other options do not fully acknowledge the ethical and legal implications of failing to disclose such material facts, which could lead to negative consequences for the seller and the agent.