Licensee Disclosure Issues Flashcards
(10 cards)
The Subdivided Lands Act disclosure requirements applies to:
any subdivider working with or for the property owner.
The Subdivided Lands Act’s disclosure requirements apply to the owner of the subdivided property and to any subdivider working with or for the owner of the property.
Which of the following loan transactions does RESPA NOT apply to?
An 8-plex purchase
RESPA applies to all federally related loans secured with a mortgage placed on a one-to-four family residential property. The purchase of an eight-unit building is not covered by RESPA regulations.
Which of the following are required disclosures when selling an interest in a subdivision?
-Blanket encumbrance disclosure
Annual association disclosure in common-interest ownership subdivisions
-A seven calendar day right of rescission, if the sale is a subdivision with undivided interest or timeshare
All of the above
The blanket encumbrance disclosure, the annual association report, and the right to rescind are all required disclosures.
Which of the following must be given to a borrower buying a home with an adjustable rate mortgage?
-The Consumer Handbook on Adjustable Rate Mortgages
-A loan program disclosure for each variable rate program in which the borrower expresses an interest
-Subsequent disclosures each month an interest rate adjustment takes place
All of the above
The disclosures required for adjustable-rate mortgages are the CHARM booklet, a disclosure for each variable-rate mortgage the consumer is interested in, and disclosures provided by the lender for each month an interest rate adjustment takes place.
Which of the following is FALSE regarding the public report issued by the DRE?
The report is optional material to be given to each prospective purchaser.
The public report must be posted in a conspicuous place in any office where sales of subdivision interests are conducted. A copy of the public report must be delivered to any member of the public who requests one. Each prospective buyer will be given a copy of the public report prior to entering into a contract to purchase.
Which type of transaction requires the use of an agency disclosure form?
1.)The sale of a mobile home that is permanently attached to land
2.)The sale of commercial real estate
3.)The sale of a 4-plex
4.)The sale of a single-family residence
1, 2, 3, and 4
The agency disclosure form is required for any sale or exchange of one-to-four dwelling units, any lease on one-to-four dwelling units for more than 1 year, commercial real property, and any mobile home if sold by a real estate licensee. The agency disclosure is not required for raw land, or business opportunity transactions.
Which of the following falls within the definition of subdivided lands and subdivisions as set forth in the Business and Professions Code?
Any community apartment project containing five or more apartments.
The definition of subdivided lands and subdivisions is any planned development containing five or more lots, any community apartment project containing five or more apartments, any condominium project containing five or more condominiums, any stock cooperative having or intending to have five or more shareholders, and any limited-equity housing cooperative.
A real estate licensee must do which of the following with respect to agency relationship disclosure?
-Give an agency disclosure form to a seller before the seller has signed a listing agreement
-Deliver an agency disclosure to a buyer as soon as practical, but in all cases prior to the execution of an offer
-Have the buyer and seller confirm in writing in the contract to purchase and sell real property or in a separate document acknowledging the agency relationships involved in the transaction
All of the above
A real estate licensee is required to do all of the above tasks in relation to the required agency disclosure form.
Which type of transaction does the seller carry back disclosure requirement NOT apply to?
The sale of an 8-plex in which the purchaser will occupy one of the units
The seller carry back disclosure requirements only apply to residential dwellings of one-to-four units where the seller extends credit to the buyer through a written agreement that provides for a finance charge; or the seller extends credit to the buyer through a written agreement that has more than four payments of principal and interest (or interest only), not including the down payment.
Regulation Z applies to which of the following credit situations?
-Purchase of a penthouse condominium
-Purchase of a single-family dwelling
Creditors who issue credit for consumer loans secured by a consumer’s principal dwelling must comply with the Truth in Lending Act (implemented by Regulation Z). The penthouse and single-family dwelling are covered under Regulation Z. The vacant land is not covered (it has no dwellings and the land is being sold) and the 8-plex is not covered (it is not a 1-to-4 unit family dwelling).
