Maine Real Estate License Practice Exam

What action must licensees take concerning the heating system before a sale?

1. Provide an estimate of future heating costs

2. Disclose any known malfunctions

3. Recommend system upgrades

4. List current heating fuel providers

The correct answer is: Disclose any known malfunctions

Licensees are required to disclose any known malfunctions of the heating system before a sale. This obligation falls under the general duty of sellers and their agents to provide material facts about the property that could affect the buyer's decision. When a heating system has malfunctions, it can significantly impact the property's value, the comfort of the occupants, and the safety of the environment. Therefore, informing potential buyers about these known issues ensures they can make an informed decision and prepares them for potential repair expenses after the sale. Transparency in this area is crucial in protecting the interests of all parties involved, and it upholds the ethical standards of real estate practice. Providing an estimate of future heating costs, recommending system upgrades, or listing current heating fuel providers, while potentially beneficial for the buyer, do not hold the same legal weight as disclosing known malfunctions. Such actions might be seen as supportive information, but they do not fulfill the crucial requirement to disclose critical defects that could influence the buyer's knowledge and decision-making process.