Unit 3: Mandatory Disclosures

Question 1

First Disclosure

Answer 1

Should be the Agency Disclosure

Question 2

Types of Agency

Answer 2

Seller’s Agent
Buyer’s Agent
Duel Agency

Question 3

California Civil Code 2079.19

Answer 3

Money does not determine loyalty

Question 4

California Civil Code 2079.21

Answer 4

A dual agent cannot tell a buyer that a seller is willing to accept any less than originally offered. A dual agent cannot tell a seller that a buyer is willing to pay more than originally offered without express written consent from either party.

Question 5

Full Disclosure

Answer 5

Disclosing or giving notice of all material facts

Question 6

Duty to Other Party (nonagency)

Answer 6

Disclosure, Honesty, and Fairness

Question 7

3 steps to an agency disclosure

Answer 7

Disclose, Elect, Confirm

Question 8

Transfer Disclosure Statement (TDS)

Answer 8

Written disclosure statement of the property

Question 9

Easton vs. Strassburger

Answer 9

Real Estate agents are required only to visually inspect one-to-four residential units and retain liability for any undisclosed defects that the agent knew about or should have discovered with a reasonably diligent visual inspection.

Question 10

Insect Infestation

Answer 10

Two termite inspections- Disclose both to buyer

Question 11

Red Flag

Answer 11

a visual sign that indicates a possible problem

Question 12

Death on Property Rules

Answer 12

Disclose deaths on the property within 3 years

Question 13

AIDS Disclosure

Answer 13

Cannot disclose how they died if it was for AIDs.

Question 14

If the client asks about death on the property

Answer 14

regardless of the timeline, must disclose

Question 15

Natural Hazards Disclosure

Answer 15

Disclosure form that covers if the property is in any zones where natural hazards can occur.

Question 16

Lead-Based Paint

Answer 16

1) Pre-1978 we need a led-paint disclosure
2) after-1977 will not require a led-paint disclosure
3) Both agent and seller are liable for failure to disclose

Question 17

Real Estate Settlement Procedures Act (RESPA)

Answer 17

1) Prohibits Kickbacks
2) Requires the lender to provide a borrower with a good faith estimate of closing and loan costs within three business days of that borrower submitting an application.

Question 18

Megan’s law

Answer 18

Every sales contract must include a notice informing buyers or lessees of the public availability of the sex offender database website.

Question 19

Smoke Detectors

Answer 19

All properties must have a smoke detector.

Question 20

Water Heater

Answer 20

Water heaters have to be strapped, braced, and anchored in order to resist falling in the event of an earthquake.

Question 21

Supplemental Tax Bill Disclosure

Answer 21

Residential sellers must disclose to buyers in writing to expect supplemental tax reassessment bills.

Question 22

Agents Duty

Answer 22

1) Fiduciary Duty to the Principal
2) Must disclose any known detrimental information to a buyer, even when the agent represents the seller.
3) Any material facts the agent becomes aware of must be disclosed to the principal.

Question 23

Earthquake Safety Discosure Applies to

Answer 23

1-4 unit residential properties

Question 24

The buyers sign that they have received a booklet relating to:

Answer 24

environmental hazards

Question 25

Brownfields is a term related to

Answer 25

Soil Contamination

Question 26

The purpose of Subdivided Lands Law is to

Answer 26

Protect purchasers from fraud

Question 27

A right of rescission is provided by law for purchase agreements involving:

Answer 27

Timeshares and undivided interest subdivisions.