Hawaii Pre-Licensing National Practice Exam

A seller is required to disclose the known presence of asbestos in a property because it is considered a material defect that can affect the health and safety of occupants. Asbestos is a hazardous substance that can lead to serious health issues if disturbed, making it crucial for potential buyers to be aware of its existence.

The requirement to disclose is rooted in the principle of transparency in real estate transactions; sellers must ensure buyers have all pertinent information to make informed decisions. This obligation pertains to environmental hazards like asbestos, which can have long-term implications for health and property value.

Additionally, while a seller might have the option to remove asbestos, the primary focus is on disclosure of known issues rather than taking action to eliminate them. Sellers not disclosing the presence of asbestos could potentially face legal repercussions, especially if the buyer suffers health consequences as a result of undisclosed information. Thus, being upfront about the presence of asbestos aligns with legal and ethical standards in real estate transactions.