Morgan's (VI)

Question 1

The Residential Lead-Based Patient Hazard Reduction Act of 1992 requires including a lead-based paint disclosure notice either in or with sales contracts for residential properties built prior to ___.

Answer 1

1978

Question 2

A type of insurance that generally have a one-year contract period and cover service and/or replacement costs for major systems, such as heating/cooling, ducts, hot water heater, electrical, and plumbing, as well as major appliances

Answer 2

Home warranties (aka home protection plans)

Question 3

A licensee has an obligation to perform a due diligence property inspection and verification of information in order to discover material facts and/or defects that the licensee reasonably should have known about. This also applies to researching and confirming (or correcting) property data supplied by the owner of the owner’s agent. What is involved in this process?

Answer 3

Reviewing information in the public record, such as assessment data on annual taxes, lot size and dimensions, total square footage of any buildings, zoning type and applicable restrictions, as well as other general property expenses

Question 4

In the course of verifying information, a licensee may see ___ to property data that may lead to price concessions or other remedies by the seller.

Answer 4

Adverse consequences

Question 5

This word refers to legal responsibility or accountability

Answer 5

Liability

Question 6

Type of legal liability that refers to a supervisor or principal’s responsibility for the acts of a subordinate or agent

Answer 6

Vicarious liability

Question 7

Type of liability shared between 2 or more parties

Answer 7

Joint liability

Question 8

Liability of one party that can be legally pursued separately from other liable parties

Answer 8

Several liability

Question 9

Property conditions that are ___, which means significant in a party’s decision-making process of approving or disapproving a purchase, must, when known or reasonably should have been discovered, be disclosed.

Answer 9

Material

Question 10

List 5 material defects related to physical condition.

Answer 10

1. Site or soil conditions
2. Property location within a natural hazard zone
3. Undisclosed or undiscovered encroachments or easements
4. Structural property environmental problems, such as the presence of wood infestation, lead-based paint, asbestos, radon gas, UFFI (urea formaldehyde foam insulation), toxic mood
5. Structural physical conditions

Question 11

List 4 material defects related to public controls, statutes, or public utilities.

Answer 11

1. Public controls (zoning, planning, municipal boundaries)
2. External property environmental problems (contaminated soil/groundwater, underground storage tanks)
3. Commercial, industrial, or utility concerns (eg, airport flight paths, railroad lines, etc.)
4. Stigmatized or psychologically impacted properties

Question 12

Property defects that are concealed may be referred to as ___.

Answer 12

Latent