Environmental

Mold growth in a rental property is primarily a concern because it:

AIncreases the property's assessed value

BCan cause serious health problems and indicates moisture issues requiring remediation✓ Correct

CIs required to be disclosed only for commercial properties

DIs covered under standard homeowner's insurance without limitations

Explanation

Mold can cause respiratory problems, allergic reactions, and other health issues. It also indicates underlying moisture or water intrusion problems.

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.

A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.

Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.

DRE Regulation

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