What is the exam-ready answer?
| Official syllabus topic | Inspection and Survey Red Flags |
|---|---|
| Official PSI area | Property Disclosures |
| Published area weight | 7% of the 100-question national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
The lesson
These ideas work together. On the exam, the wrong answers usually describe a nearby concept, so learn where each one stops.
Building and site clues
Stains, odors, fresh localized paint, sloped floors, foundation cracks, ponding, damaged shingles, or improvised wiring can justify further evaluation without proving the cause.
Systems and pests
Age, unsafe operation, visible leaks, damaged components, wood-destroying-organism evidence, and missing permits can affect safety, cost, insurance, or lending.
Survey and access
Fences are not conclusive boundaries. Driveways, garages, walls, docks, and utility lines may cross lines or depend on recorded access rights.
Scope of competence
A licensee records observable facts, shares known reports accurately, recommends qualified experts, and avoids diagnosing engineering, environmental, or legal issues.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A detached garage appears to cross a fence line, but no current survey is available.
Reason it through. A fence may not mark the legal boundary, so the licensee cannot declare an encroachment or dismiss the concern.
Answer. Disclose the observation and recommend survey and title review before the buyer's deadline.
Common exam traps
- Diagnosing from a stain
- Treating fences as surveyed lines
- Assuming inspection covers title
- Waiting until after due diligence to refer
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1A new survey shows the neighbor's detached garage sits two feet over the line onto the listed lot. What is this condition?
- A. An easement appurtenant
- B. An encroachment
- C. A license
- D. Adverse possession
Show answer and explanation →
Answer: B. An encroachment
An improvement that crosses a boundary line is an encroachment, and it can raise title and survey issues for the buyer. Adverse possession is the trap: it is a possible ownership claim that needs every legal element and time period, not a name for the intrusion itself.
Question 2While preparing a listing, the agent notices fresh paint on one patch of ceiling and a faint musty smell. What is the best response?
- A. Tell buyers it was a minor leak that was repaired
- B. Leave it out, since the buyer's inspector will find it
- C. Tell buyers it is mold so they are fully warned
- D. Note it, ask the seller, and suggest expert evaluation
Show answer and explanation →
Answer: D. Note it, ask the seller, and suggest expert evaluation
A licensee describes what is observed without diagnosing it, discloses as required and refers the issue to a qualified expert. Calling it mold sounds cautious, but it is a diagnosis the licensee is not qualified to make.
Question 3A buyer's home inspection report is clean, and the buyer asks whether that means the shared driveway is legally theirs to use. What is the best answer?
- A. No, access rights come from title and survey work
- B. Yes, inspectors confirm access during the inspection
- C. Yes, if the driveway has been used for many years
- D. No, only the lender can confirm legal access
Show answer and explanation →
Answer: A. No, access rights come from title and survey work
Legal access depends on recorded rights and title and survey evidence, not on a building inspection. Long use feels persuasive, but physical use alone does not prove a right the buyer can rely on.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain Inspection and Survey Red Flags in one clear answer without notes.
- Separate Building and site clues from Systems and pests using a fresh example.
- Apply the decision rule to a new fact pattern and name the fact that controls the result.
- State the Georgia-specific point or explain why the national rule applies unchanged.
- Answer every practice question and explain the rule each rejected option misapplies.
- Revisit this topic later in mixed practice without category labels.
Recommended next lesson
Continue with Land-Use and Development Red Flags. Land-Use and Development Red Flags looks past the building and the survey lines to what the buyer wants to do with the land, covering zoning, permits, utilities and septic suitability, and why physical access is not legal access.
Return to the Property Disclosures hub to see every official branch and the complete lesson sequence for this content area.