National PSI Broker Practice Exam 2026 - Free Broker Practice Questions and Study Guide

The correct answer is that stigmatized occurrences, such as a death in the property, are typically not required to be disclosed by the seller. The rationale behind this is that many jurisdictions allow sellers to keep certain events, which may not have a direct effect on the physical condition of the property, private. This includes not only deaths but also other stigmas that might affect the perception of the property without impacting its structural integrity or safety.

In contrast, disclosures regarding current structural defects, tenant issues, and environmental hazards are typically mandated by law because they can significantly affect the property's value, safety, and livability. Buyers generally need this crucial information to make informed decisions about their purchases. Therefore, while sellers must be transparent about issues that could directly impact the buyer's experience or safety, stigmatized occurrences often fall outside these requirements, reflecting a balance between the seller's right to privacy and the buyer's right to information.