Iowa Real Estate Practice Exam

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When should a seller provide a property disclosure statement?

Before listing the property
Once a verbal offer is made
Prior to accepting a written offer to buy
After accepting an offer

The correct answer is: Prior to accepting a written offer to buy

A property disclosure statement is a crucial document in a real estate transaction that outlines the known issues with a property. The correct time for a seller to provide this statement is prior to accepting a written offer to buy. This timing is essential because it ensures that the buyer is fully informed about the property's condition before making a formal commitment. Providing the disclosure statement at this stage allows potential buyers to evaluate any issues with the property, which can significantly influence their decision to make an offer or the terms of their offer. This transparency helps build trust between the buyer and the seller and can minimize disputes later in the transaction. If a seller waits until after accepting an offer or even after a verbal offer has been made, it could lead to complications or dissatisfaction from the buyer if they discover significant issues that were not disclosed. Therefore, giving the property disclosure statement prior to accepting a written offer provides essential information that aids in a smoother transaction for both parties involved.