What should a seller indicate in their property condition disclosure if they have no knowledge of plumbing problems but the pipes are corroded?

Prepare for the South Dakota Real Estate Test. Ace your exam with flashcards and multiple choice questions. Each question is supported with hints and explanations to help you succeed!

In the scenario described, indicating "unknown" in the property condition disclosure is appropriate because the seller has no actual knowledge of plumbing problems despite the presence of corroded pipes. It's important for sellers to accurately convey what they know about the property's condition. If they are genuinely unaware of any issues, then stating "unknown" reflects their lack of knowledge.

This approach safeguards the seller from potential liability that could arise from making statements that might misrepresent the condition of the property. If a seller claimed "no problems" while knowing of the corrosion, it could lead to legal complications if issues were discovered later. Without direct knowledge of functional plumbing problems, saying "unknown" allows for transparency, while also recognizing that inspectors or buyers should conduct their own assessments to further understand the condition of the systems involved. Hence, the chosen response aligns with both ethical disclosure practices and legal considerations in real estate transactions.

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