What is tested in Property Disclosures?
| Official PSI area | Property Disclosures |
|---|---|
| Exam portion | National portion |
| Published weight | 7% of the 100-question national portion |
| Published branches | 3 |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Last verified | August 2, 2026 |
The Rule
The 7% weight belongs to the complete branch. PSI does not publish a separate number for lead-based paint, condition forms, inspections, environmental issues, or material defects.
Why this area matters
Disclosure questions test classification and response. Decide whether the fact is known, material, confidential, observable, within the licensee's expertise, or a signal to recommend qualified investigation.
Complete official content outline
These are all branches named in PSI's current salesperson outline. The teaching points below unpack each branch so you can move from recognition to application.
A. Property condition
Recognize what must be disclosed and when a licensee should recommend inspection rather than diagnose the condition.
- Seller property-condition disclosure requirements
- Conditions that may warrant an inspection
- Conditions that may warrant a survey
- Red flags involving public land-use controls
- Red flags involving private restrictions
B. Environmental and government disclosures
Identify the hazard or government requirement and the transaction to which it applies.
- Environmental issues requiring disclosure
- Federal disclosure requirements
- State or local disclosure requirements
- Lead-based paint, flood, contamination, and other fact patterns when the question supplies them
C. Material facts and material defects
Separate a fact that could affect a reasonable party's decision from confidential negotiating information.
- Known material facts
- Known latent material defects
- Duty to avoid concealment and misrepresentation
- Referral to inspectors, surveyors, engineers, environmental specialists, or attorneys
Complete lesson sequence
Work in order the first time. Each page connects the official topic to a full lesson, Georgia distinction, worked example, exam traps, original questions, mastery check, and recommended next lesson.
Lesson 96
Seller Property Disclosure
Identify who knows the fact, whether it is material, which disclosure regime applies, and when delivery must occur.
Lesson 97
Inspection and Survey Red Flags
Describe the observation without diagnosing it, disclose as required, and refer the issue to the correct expert.
Lesson 98
Land-Use and Development Red Flags
Convert every intended use into a written due-diligence question for the agency with authority and the professional with expertise.
Lesson 99
Environmental Hazards and Disclosure
Match the hazard to the official disclosure, testing, records, and specialist pathway instead of guessing from appearance.
Lesson 100
Material Facts, Defects, Misrepresentation, and Fraud
Separate opinion from fact, then test materiality, knowledge, duty, falsity, reliance, and actual contract language.
High-value distinctions and exam traps
Use these after the complete lesson sequence. Each comparison puts easily confused terms into the same decision table, then tests the controlling fact in a new scenario.
Comparison 212
Material Fact Versus Material Defect
Classify the information first, then ask whether it is adverse and material, who actually knew it, whether it was discoverable, and which disclosure duty applies.
Comparison 213
Latent Defect Versus Patent Defect
Separate visibility from knowledge: ask what a reasonable inspection would reveal, who actually knew the condition, whether anyone concealed or misstated it, and which duty applies.
Georgia-specific distinction
Worked example: Disclose the fact, not a diagnosis
Scenario. A listing licensee sees repeated water staining and knows the seller has pumped water from the basement after heavy rain. The buyer asks whether the foundation is structurally sound.
Reason it through. The known water history is material and should not be concealed. The licensee should disclose the known facts and recommend an appropriate inspection, not diagnose structural integrity. The trap is choosing between silence and pretending to be an engineer when the correct response does neither.
Common exam traps
- Treating a seller's confidential motivation as a material property fact
- Diagnosing a technical condition instead of recommending an expert
- Assuming an as-is clause authorizes concealment
- Treating every visible condition as immaterial
- Importing another state's mandatory form into a Georgia question
Original practice questions with explanations
Answer each question before opening the explanation. These are original instructional questions mapped to the official outline. They are not copied from PSI or a live exam.
Question 1A licensee knows a basement floods after heavy rain. What is the best action when speaking with a prospective buyer?
- A. Remain silent because the buyer can inspect
- B. Disclose the known material fact
- C. Guarantee the foundation is defective
- D. Advise the seller to paint over the stains
Show answer and explanation →
Answer: B. Disclose the known material fact
Known recurring flooding is material to a reasonable buyer. The licensee discloses the fact without making an unsupported engineering diagnosis.
Question 2Which condition most clearly calls for a survey rather than a home inspection?
- A. A cracked heat exchanger
- B. A disputed fence line
- C. A leaking water heater
- D. Damaged roof shingles
Show answer and explanation →
Answer: B. A disputed fence line
A survey addresses boundaries, location, and encroachments. The building-system conditions belong with qualified property inspectors or contractors.
Question 3For covered pre-1978 housing, which federal issue is specifically associated with a disclosure process?
- A. Lead-based paint hazards
- B. Radon in every transaction
- C. Mold in every transaction
- D. All asbestos-containing materials
Show answer and explanation →
Answer: A. Lead-based paint hazards
Federal law creates a lead-based paint disclosure process for most covered pre-1978 housing. The other hazards may be material or regulated in particular contexts but do not share that blanket statement.
Mastery tracking
Mark this area mastered only when every statement below is true.
- I can explain every official branch in plain English without notes.
- I can identify the Georgia distinction before reading the answer choices.
- I can solve a new scenario and state which fact controlled the answer.
- I can explain why each tempting distractor is wrong.
- I meet my accuracy target in mixed practice on at least two different days.
- I know which lesson to reopen when this area weakens.
Related lessons
Agency
Separate client confidentiality from property disclosure.
Land Use Controls
Recognize restriction and zoning red flags.
Disclosure practice
Apply disclose, investigate, refer, or protect confidentiality.
Recommended next lesson
Continue with Property Management. Apply fair housing, condition, funds, and contract duties in rental operations.