Property Disclosures

Property Disclosures (Agency & Disclosure) Property disclosures are one of the highest-priority Tennessee-specific topics on the exam, appearing in the 10–14 question Agency & Disclosure block. Knowing exactly *what* must be disclosed, *to whom*, *when*, and which transactions are *exempt* is essential for passing the TN portion. --- ## What Is the RPCD? The Residential Property Condition Disclosure (RPCD) is Tennessee's required disclosure form that sellers must provide to buyers in covered residential transactions. It is the cornerstone of property disclosure law in TN and the concept most likely to appear on your exam. The RPCD requires the seller to disclose known material defects — meaning conditions that would significantly affect the value or desirability of the property, or that the buyer would want to know before purchasing. --- ## Who Must Use the RPCD? The RPCD applies to 1–4 unit residential properties. If a transaction involves a home, duplex, triplex, or four-plex being sold, the seller generally must complete this form. ### RPCD Exemptions Certain transactions are exempt from the RPCD requirement. Memorize these — they are a common exam target. | Exempt Transaction | Why It Makes Sense | |---|---| | Court-ordered sales (foreclosures, bankruptcies) | Seller may not have personal knowledge of property condition | | Transfers to heirs (estate sales) | Heirs may have no firsthand knowledge of defects | | Transfers between co-owners | Both parties already share ownership knowledge | | Commercial property sales | RPCD only covers 1–4 residential units | > Exam tip: Even when an exemption applies, the agent still owes the buyer honesty and cannot conceal or misrepresent known material facts. --- ## "As Is" Sales — A Critical…