Real Estate Disclosures & Environmental Issues Practice Questions
Disclosures & Environmental Issues makes up 5 of every 50 questions on a Tigertest Real Estate practice test. Here are 10 of the 20 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Weighted to the Pearson VUE national salesperson outline (2025), which matches PSI's. Your state portion is separate.
1. A landlord is renting an apartment in a building constructed in 1970. Before the lease is signed, the landlord must:
- A.Have the unit tested for lead
- B.Provide the EPA pamphlet and lead disclosure
- C.Obtain a lead-free certificate from HUD
- D.Remove all lead-based paint from the apartment
Answer: B. For housing built before 1978, sellers and lessors must give the EPA lead pamphlet and disclose known lead-based paint and hazards. The rule requires disclosure, not testing or removal.
2. A buyer's contract on a 1955 house is accepted June 1. The lead-based paint inspection opportunity runs 10 calendar days. It expires:
- A.June 4
- B.July 1
- C.Ten days after closing
- D.June 11
Answer: D. The federal rule gives buyers of pre-1978 housing a 10-day opportunity to conduct a risk assessment unless waived: June 1 + 10 days = June 11. The period runs from the contract, not from closing, because the assessment must happen before the buyer is obligated.
3. An inspector finds intact asbestos pipe insulation in good condition in a basement. The usual recommended approach is to:
- A.Leave it undisturbed or encapsulate it
- B.Have the owner tear it out right away
- C.Sand the insulation and repaint it
- D.Vent the basement air to the outdoors
Answer: A. Asbestos is dangerous when friable fibers are released, so intact material is often best left alone or encapsulated. Removal by untrained people disturbs the fibers and creates the very hazard it aims to fix.
4. Two radon tests in a basement show 3.2 and 5.6 pCi/L. Using the average and the EPA action level, the owner should:
- A.Seal the attic and the roof vents
- B.Do nothing, since one test was below 4
- C.Install a radon mitigation system
- D.Retest only after ten years
Answer: C. The average is (3.2 + 5.6) / 2 = 4.4 pCi/L, above the EPA action level of 4 pCi/L, so mitigation is recommended. One low reading does not cancel a high average, and radon enters from the soil, not the attic.
5. A buyer's inspector finds mold behind a leaking washing machine hookup. Which step addresses the underlying problem?
- A.Raise the indoor humidity level
- B.Paint over the moldy drywall
- C.Fix the water leak
- D.Spray the area with air freshener
Answer: C. Mold needs moisture, so lasting remediation starts by fixing the water source and then cleaning or removing affected materials. Painting over mold hides it while it keeps growing.
6. Urea-formaldehyde foam insulation, used in many homes during the 1970s, is an environmental concern mainly because it:
- A.Releases formaldehyde gas
- B.Contains asbestos fibers
- C.Emits radon gas absorbed from the soil
- D.Contains lead pigments
Answer: A. UFFI can off-gas formaldehyde, an irritant and probable carcinogen, especially when newly installed. Radon is a natural soil gas and is unrelated to insulation.
7. A buyer is purchasing a former gas station site for redevelopment. The buyer's main environmental concern is most likely:
- A.Urea-formaldehyde foam insulation
- B.Lead paint on the canopy
- C.Electromagnetic fields from power lines
- D.Leaking underground storage tanks
Answer: D. Former gas stations often have underground storage tanks that can leak petroleum into soil and groundwater, and federal and state rules govern tank removal and cleanup. UFFI is a residential insulation issue, not a fuel station hazard.
8. Abandoned or underused industrial sites whose redevelopment is complicated by possible contamination are known as:
- A.Greenfields
- B.Brownfields
- C.Special flood hazard areas
- D.Wetlands
Answer: B. Brownfields are previously used commercial or industrial properties with real or suspected contamination, and federal programs encourage their cleanup and reuse. Greenfields are undeveloped land never used for industry.
9. A buyer is financing a home in a Special Flood Hazard Area with a federally backed mortgage. The lender will require:
- A.A home warranty
- B.Flood insurance
- C.A Phase I site assessment
- D.A wetlands fill permit
Answer: B. Federal law requires flood insurance, typically through the NFIP, for federally backed loans on property in a Special Flood Hazard Area. A standard homeowners policy and a home warranty do not cover flood damage.
10. Three parties caused $900,000 in contamination cleanup costs, and two are now insolvent. Under CERCLA, the solvent current owner may owe up to:
- A.$0 if the owner did not dump
- B.$300,000
- C.$450,000
- D.$900,000
Answer: D. CERCLA liability is strict, joint and several, and retroactive, so any one responsible party can be held for the entire $900,000. The $300,000 answer ($900,000 / 3) assumes an equal share, and liability does not depend on having caused the pollution.
Practice all 20 disclosures & environmental issues questions, and the rest of the 200-question bank, in the free Real Estate training sets. Questions you miss come back until you have mastered them.
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