Maine Real Estate License Practice Exam

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Prepare for the Maine Real Estate Exam with comprehensive study materials. Utilize flashcards and multiple-choice questions, each with hints and explanations, to boost your confidence and ace your exam.

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What will happen if a disclosure is not made regarding known property issues?

The transaction may be voided
A lawsuit may occur against the seller
The realtor may lose their license
No punishment will be imposed

The correct answer is: The transaction may be voided

When known property issues are not disclosed, the implications can be significant for the real estate transaction. In some jurisdictions, failing to disclose material defects may lead to the transaction being voided, meaning that the contract can be considered null and void, possibly due to a breach of fiduciary duty or misrepresentation. This situation can arise because sellers are legally obligated to inform buyers of any known defects or issues that could affect the property's value or safety. If these disclosures are not made, it undermines the foundation of trust and transparency that the transaction is based upon. Consequently, the buyer may have grounds to demand the rescindment of the sale, effectively voiding the transaction if they discover these undisclosed issues after the purchase. Other potential outcomes, such as lawsuits against the seller or penalties against the realtor, while plausible, do not carry the same immediate consequence as the possibility of voiding the transaction. Thus, the most direct and immediate consequence of failing to disclose known property issues is that the transaction itself may be voided.