Oregon 30-Hour Real Estate Law Practice Test

Environmental hazards are classified as what type of facts that must be disclosed?

1. Insignificant Facts

2. Material Facts

3. Minor Concerns

4. Irrelevant Information

The correct answer is: Material Facts

Environmental hazards are classified as material facts that must be disclosed in real estate transactions because they can significantly impact the value and desirability of a property, as well as the health and safety of its occupants. Material facts are defined as information that is crucial for a buyer to know in order to make an informed decision. This includes any potential environmental risks, such as the presence of lead-based paint, radon, mold, or toxic waste in the vicinity, as these factors can have legal, financial, and health implications. When representing a client, real estate agents have a fiduciary duty to disclose material facts so that buyers can fully understand what they are purchasing. Failing to disclose known environmental hazards can lead to legal liability for the agent and seller, as well as significant consequences for the buyer. Thus, the classification of environmental hazards as material facts is fundamental in real estate practice, as it underscores the importance of transparency and ethical standards in the industry.