Tennessee Realtor State Practice Exam

The Tennessee Residential Property Disclosure Act covers which type of property sales?

1. Multi-family properties only

2. Commercial properties

3. Single-family residential properties with four or fewer units

4. All types of properties

The correct answer is: Single-family residential properties with four or fewer units

The Tennessee Residential Property Disclosure Act specifically addresses the sale of single-family residential properties that have four or fewer units. This includes traditional single-family homes as well as small multi-family properties like duplexes, triplexes, or four-plexes. The intent of the act is to ensure transparency in real estate transactions involving residential properties by requiring sellers to disclose known material defects. This requirement emphasizes consumer protection in the residential market, as purchasers of these types of properties are often buying homes for personal use rather than for commercial investment. The other types of properties listed, such as multi-family properties beyond four units and commercial properties, fall outside the scope of this act. These types of properties may have their own sets of regulations and disclosure requirements, but they are not covered under the Tennessee Residential Property Disclosure Act, which is focused on protecting residential buyers in smaller dwellings.