Disclosures

Question 1

Limited confidentiality prevents disclosure of which five things?

Answer 1

• Seller will accept a price less than the asking or listed price
• Buyer will pay a price greater than the price submitted in a written offer
• Motivation of the parties for selling and/or buying the property
• seller or buyer will agree to alternative financing (terms other than those previously disclosed in writing)
• any other info requested by a party to remain confidential

Question 2

When are written disclosures required?

Answer 2

• Only for residential sale transactions when the brokerage firm acts in a capacity other than transaction broker (single agent or no brokerage relationship)

Question 3

What are the five types of transactions that do not require brokerage relationship disclosures?

Answer 3

• Nonresidential transactions
• rent or lease agreements, unless there is an option to purchase property improved with four or fewer residential units
• business opportunities, unless improved with four or fewer residential units
• auctions
• appraisals

Question 4

What are the six exceptions to disclosure requirements?

Answer 4

• Licensee know that a single agent or a transaction broker represents the buyer or the seller
• If you’re at a open house or model home showing
• an unanticipated casual encounter between a licensee and a buyer or seller
• responding to general factual questions concerning properties advertised for sale
• communication is limited to providing factual information about the qualifications, background, and services of the licensee or the brokerage firm
• owner is selling new residential units built by the owner & it’s clear that the licensee is acting on behalf of the owner