Maine Real Estate License Practice Exam

Which of the following must a buyer agent disclose to his client regarding the heating system of a residential property?

1. The current price per gallon for heating fuel

2. The advisability of replacing baseboard heat

3. Malfunctions within the last two years

4. Malfunctions during the time the seller owned the property

The correct answer is: Malfunctions within the last two years

A buyer agent is required to disclose any malfunctions of the heating system that have occurred within the last two years. This requirement stems from the duty of the agent to provide full transparency and to protect the interests of their client. Disclosing recent malfunctions is critical because it directly impacts the buyer's understanding of the property's condition and potential future costs associated with repairs or replacements. Knowledge of recent issues with the heating system is essential in a real estate transaction, as it allows buyers to make informed decisions regarding their investment and to possibly negotiate repairs or concessions with the seller. It also ensures compliance with ethical duties and legal obligations that agents owe to their clients, which emphasize the need for honesty about property defects. While other considerations, such as the price of heating fuel, the advisability of replacing the heating system, and the seller's history of malfunctions, may be relevant, they do not carry the same obligation of disclosure in terms of direct impact on the buyer's decision-making at the time of the purchase. Hence, focusing on recent malfunctions remains a priority for buyer agents.