Section 12: Disclosures, Consumer Protections, and Environmental Laws Flashcards by Delia Archer

Honest

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Duties and Obligations of Agents:
* Agents are obligated to maintain at all times a set of duties to their customer:
> IMPORTANT: To disclose all known ________.
o Brokers/Agents should only go through the other broker/agent when discussing properties, offers, details etc. It is unethical to allow your client to talk to the other principal.

Material Fact

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Duties and Obligations of Agents:
* Agents are obligated to maintain at all times a set of duties to their customer:
> IMPORTANT: To give ‘________’ to all parties.
o Example: Seller’s agents are to maintain full responsibility to the listing on behalf of the
sellers even before the property is listed for sale – answer questions etc.

Reasonable Care

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Duties and Obligations of Agents:
* Agents are obligated to maintain at all times a set of duties to their customer:
> IMPORTANT: All signed paperwork should be delivered to the principal/client as soon as practical.
o Conveyance Documents ________ as an example shows us the rules and states that:
o Real Estate Agents are responsible for collecting and disseminating all
information to the client in a timely fashion.

R4-28-802

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Duties of Disclosure:
* Disclosures are designed to PROTECT the general public and the licensee
o If it would be important to you, disclose it to all parties
o By disclosing of all facts or known issues, you are relieved of ________ in the future.

Liability

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Duties of Disclosure:
o IMPORTANT: Disclosures or ________ to disclose is a common reason agents get into legal trouble.

Failing

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Acting as Attorney or Accountants:
* NEVER Give ________ or discourage those from speaking to a lawyer.
o IMPORTANT: This would be construed as acting as an attorney and is illegal.

Legal Advice

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Acting as Attorney or Accountants:
o Always SUGGEST that your client seek the appropriate legal counsel
* NEVER Give ________
o Could be construed as acting as a CPA or a financial planner.

Financial Advice

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Real World:

________ is a class 6 FELONY in the State of Arizona. Many times, the department of real estate will file complaints against people doing real estate without being duly licensed. This is common in property MANAGEMENT!

Criminal Impersonation

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Material Facts vs Defects:
One is something that you know, the other you may not know but would it change your mind if you did know?

Defects
Material Facts

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Material Facts vs Defects:
* Material Fact is something that most competent people would find a ________ to know before making an offer to purchase or listing a home for sale.
o Proximity to an Air Force Base
o Disclosing of previous meth manufacturing on the property
o Local school ratings

Need

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Material Facts vs Defects:
* Material Defect:
Is something that has a DIRECT ________ on the VALUE of a property.
o A non-functioning air conditioner
o A broken pool pump
o Sellers who know of a leaking roof or other structural damages which are “known

Effect

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Misrepresentation vs Fraud:
* The difference is what the ________Intention was – to cheat or not to cheat? - The Courts

Not To Cheat

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Misrepresentation vs Fraud:
* Fraud is the intentional concealment of a material fact in order to deceive
o Seller claims no knowledge of mold, but recently painted over a molded section of drywall from an air conditioner leak that was hastily fixed in hopes of selling.
o IMPORTANT: Goal is ______!

To Cheat

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Misrepresentation vs Fraud:
* ________ is the UNINTENTIONAL concealment of a MATERIAL fact.
o Seller lies about the square footage of their property because they ‘thought’ it was larger than it actually was due to an addition that was never permitted.
o IMPORTANT: IMPORTANT: Goal is to cheat!

Misrepresentation

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Ethics Violations:
The moral principles that govern a person’s behavior or the conducting of an activity. As an agent, are we bound by ethics?
* IMPORTANT: Things that are not ________ are not necessarily illegal.

Ethical

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Ethics Violations:
* IMPORTANT: To file an ethics complaint, contact the ________
* They can handle complaints based on ethics violations, while the ADRE does NOT.

Arizona Association of Realtors® [AAR]

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Quiz:

True or False; You shouldn’t give legal advice to a client or discourage them from speaking to a lawyer.

True

False

True

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Quiz:

Which of the following are true?

All agents abide by the code of ethics

As agents we must disclose what is known to us

In Arizona, it is mandatory that agents provide legal advice

Anyone can file a claim against a real estate agents ethics

ADRE will investigate ethics complaints

As agents we must disclose what is known to us

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Case Study:

Name a duty/obligation of an Agent?

The following are the duties/obligations of an Agent.
1. To be honest with all parties and treat all parties fairly at all times
2. To give ‘reasonable care’ to all.
3. To disclose all known material facts.
4. All signed paperwork should be delivered to the principal/client as soon as practical

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Case Study:

What is the purpose of disclosures?

Disclosures are designed to protect the general public and the licensee. If it would be necessary for you, disclose it to all parties. By informing of all facts or known issues, you are relieved of liability in the future. Disclosures or failure to tell are common reasons agents get into legal trouble.

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Case Study:

What is the difference between a Material Fact and a Material Defect?

Material “fact” is something that most competent people would find a need to know before making an offer to purchase or list a home for sale. On the other hand, Material “defect” is something that has a direct effect on the value of a property.

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Case Study:

What is the difference between a misrepresentation and fraud?

Misrepresentation is the unintentional concealment of a material fact. At the same time, Fraud intentionally conceals a material fact to deceive.

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DISCLOSURES, CONSUMER PROTECTIONS &
ENVIRONMENTAL LAWS:
Quiz:

An owner informs you that their home had received a new roof last year in response to a leak. Since you now know of this you have to disclose it, but at the same time, you think this may hurt your chances of receiving top offers. Which action could an agent be found guilty of by not disclosing this to potential buyers?

Fraud

Misrepresentation

Acting as an attorney

Fiduciary duty

Fraud

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DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: What would be considered a material Defect? Local school ratings A recently expanded freeway behind the house Increasing crime rates A leaking water heater

A leaking water heater

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: A seller must disclose all known defects, but the buyer must do what? Nothing as it is up to the seller to disclose Their own due diligence and inspections Provide evidences of their findings to the escrow company Sign a receipt of the sellers disclosure reports

Their own due diligence and inspections

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: As a licensed real estate agent in the state of Arizona it is our duty to disclose offers to our sellers with what time constraints? Within 2 days Within 12 hours As soon as practical Whatever what was agreed upon between agent and seller

As soon as practical

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: Which of the following is not a material fact relating to the sale of a commercial lot listed for sale with your brokerage: The soil condition report The proximity to a superfund site The potential zoning change request The ownership is in the name of an LLC

The potential zoning change request

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agency Disclosure Forms in Arizona: NOTE: You will not be asked questions on the forms themselves, but on the concept of the forms, ________ they are used and how to protect yourself and the clients using these forms.

Why

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agency Disclosure Forms in Arizona: * ________: o This form allows real estate clients to select buyer or seller representation or both o If working for both parties, all parties need to be informed and signed disclosure of DUAL agency.

The Real Estate Agency & Election Form

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agency Disclosure Forms in Arizona: * ________: o When working with buyers, it’s best to get signed and accepted by the buyers prior to showing properties, outlines agent’s duties and buyer’s duties.

Buyer Broker Exclusive Employment Agreement

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agency Disclosure Forms in Arizona: * Seller Agent Disclosures: o When working with sellers, use of the “________” clearly states that you will be representing the sellers as their agent and outlines duties. o Verbal or implied actions may in fact create an agency relationship, but these are the only two forms that actually “employ” brokerages to work for a client in Arizona.

Listing Agreement

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agency Disclosure Forms in Arizona: * ________: o This is a specific form to be used in the AAR library for when a buyer’s agent is representing a buyer in a sale where the owner does NOT have an agent. o This insures your commission before entering into a contract

Unrepresented Seller

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agency Disclosure Forms in Arizona: IMPORTANT: ________ and ________ are the only two forms that actually “CONTRACT” brokerages to work for a client in Arizona.

Buyer Broker Exclusive Employment Agreements Seller Agent Disclosures

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Listing and Sale Disclosures In Arizona: * ________: o If a property is in a homeowner association (HOA) must also be disclosed along with amount of dues paid, transfer fees and disclosure fees.

HOA Addendum

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Listing and Sale Disclosures In Arizona: * ________: o IMPORTANT: For properties built before 1978 may have paint that contains lead, which can be harmful if ingested and ALL parties must sign disclosure on houses built before 1978. o IMPORTANT: Due 5 DAYS after contract acceptance.

Lead Based Paint

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Listing and Sale Disclosures In Arizona: * Lead Based Paint: o IMPORTANT: For properties built before 1978 may have paint that contains lead, which can be harmful if ingested and ALL parties must sign disclosure on houses built before 1978. o IMPORTANT: Due ________ Days after contract acceptance.

5 Days

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Listing and Sale Disclosures In Arizona: *________: o The seller is obligated to disclose all known material latent defects that materially and adversely affect the consideration to be paid by the buyer.

Seller Property Disclosure Statements (SPDS)

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Listing and Sale Disclosures In Arizona: *Seller Property Disclosure Statements (SPDS): o The SPDS will evidence the fact that the seller has made these required disclosures. o IMPORTANT: Due ________ Days after contract acceptance.

3 Days

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Listing and Sale Disclosures In Arizona: * ________: o Seller shall deliver to Buyer a 5 year Insurance claims history report regarding Premises. o IMPORTANT: Due 5 days after contract acceptance

Comprehensive Loss Underwriting Exchange (C.L.U.E.) Report

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Listing and Sale Disclosures In Arizona: * Comprehensive Loss Underwriting Exchange (C.L.U.E.) Report: o Seller shall deliver to Buyer a ________ Year Insurance claims history report regarding Premises. o IMPORTANT: Due 5 days after contract acceptance

5 Year

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Listing and Sale Disclosures In Arizona: * Comprehensive Loss Underwriting Exchange (C.L.U.E.) Report: o Seller shall deliver to Buyer a 5 year Insurance claims history report regarding Premises. o IMPORTANT: Due ________ Days after contract acceptance

5 Days

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Listing and Sale Disclosures In Arizona: * ________: o Buyer is responsible for making all necessary inquiries and consulting the appropriate source and this is a guide to point buyers toward the right ‘source’. o IMPORTANT: A real estate agent is to be “THE SOURCE of THE Source, NOT the source.

Buyer’s Advisory

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Listing and Sale Disclosures In Arizona: *Buyer’s Advisory: o Buyers will sign a ________ acknowledging that they have received this advisory.

Receipt

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agent’s Duty to Disclose: * Agents have the duty to discover and disclose any known facts about a property. * Facts may materially affect the value and desirability of a property. * Facts that may or may not be easily observable. * Agent Duty to Outline and ________ all parties to the contents of the contracts.

Educate

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: IMPORTANT: Agent’s Duty to Disclose: * If ________, both parties sign and acknowledge that there is a singular licensee. * Ensure that clients understand nature and amounts of earnest money.

Dual Agency

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: IMPORTANT: Agent’s Duty to Disclose: * Disclose any and all offers in a timely fashion, unless seller dictates otherwise in ________.

Writing

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: IMPORTANT: Agent’s Duty to Disclose: * Commissions and ________ income from any outside source must be disclosed.

Referral

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agent’s Duty to Disclose: * Business ________ and relationships if applicable from other vendors.

Affiliations

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agent’s Duty to Disclose: * If one party is not able to ________ on the sale, the agent must disclose as soon as discovered.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agent’s Duty to Disclose: * Representing a family member, business partner or another ________ from another firm, your firm or another state.

Active Licensee

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Agent’s Duty to Disclose: * If, something may come of this transaction, like a ________ or any form of business ownership that may arise from the transaction, it needs to be disclosed.

Partnership

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: * Stigmatized Properties: Arizona law stipulates that agents are NOT obligated to disclose: o If the property is the site of a natural death, ________, suicide, etc.

Homicide

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: * Stigmatized Properties: Arizona law stipulates that agents are NOT obligated to disclose: o Reports or rumored to be the site of a ________ or other such entities.

Haunted House

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: * Stigmatized Properties: Arizona law stipulates that agents are NOT obligated to disclose: o Occupancy or ownership of a person exposed to/or diagnosed with ________.

HIV/AIDS

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: * Stigmatized Properties: Arizona law stipulates that agents are NOT obligated to disclose: o Properties located within the vicinity of a known ________.

Sex Offender

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: * Stigmatized Properties: Arizona law stipulates that agents are NOT obligated to disclose: - As the agent it's important to protect our clients, so if you feel a disclosure would be important, even if not mandatory, you MUST ________. - Example: The sex offenders registry can be found ONLINE.

Share It

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: * Stigmatized Properties: Arizona law stipulates that agents are NOT obligated to disclose: o Don’t disclose that your seller will accept a lower price also known as a ________.

Distressed Sale

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: IMPORTANT: Real Life: BE THE SOURCE OF THE SOURCE! Educate and inform your clients of ________ to find the information they seek. But be careful, we don't want to implement our opinions into their decisions as we never know what is important to our client, or how they may perceive certain stigmas.

Where

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Buyer’s Responsibilities: * ________: i.e., the buyer must make a physical inspection of the property.

Actual Notice

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Buyer’s Responsibilities: * ________: i.e., checking public records on the property.

Constructive Notice

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Buyer’s Responsibilities: * IMPORTANT: Buyers must perform their own ________. o It is up to the buyers to investigate and verify any and all pertinent details important to the contract or purchase of the real estate.

Due Diligence

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Buyer’s Responsibilities: o The rule of “________” is frequently used which means “Buyers Beware”. o IMPORTANT: This does NOT relieve sellers or agents from Disclosure of Material Facts or Defects.

Caveat Emptor

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Buyer’s Responsibilities: o The rule of “Caveat Emptor” is frequently used which means “Buyers Beware”. o IMPORTANT: This does NOT relieve sellers or agents from Disclosure of ________ or ________.

Material Facts Material Defects

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Buyer’s Responsibilities: * While legal, making offers on multiple properties could subject the buyer to problems, especially if working with banks/REO or sellers who use their own contracts that specifically ________ this.

Prohibit

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Buyer’s Responsibilities: Real Life: While legal, making offers on multiple properties could subject the buyer to problems, especially if working with banks/REO or sellers who use their own contracts that specifically prohibit this. In a seller's market agents write offers on multiple properties for their buyer without using the proper disclosures which could result in ________violations and if pushed, fraud. Be careful and DISCLOSE if you intend to do this!

Ethical

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Seller’s Duty to Disclose: * Disclose: o Any known property defects in writing in the ________.

Seller Property Disclosure Statements (SPDS)

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Seller’s Duty to Disclose: * Disclose: o If the property is in the territory in the vicinity of EITHER a military or public ________.

Airport

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Seller’s Duty to Disclose: * Disclose: o Surprise, AZ – Must carry map of ________ area of influence at all times due to plane noise.

Luke AFB

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Seller’s Duty to Disclose: * Disclose: * Answer buyer’s questions regarding property condition. * Correct any incorrect ________ the other party is relying on to make decisions.

Assumption

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Seller’s Duty to Disclose: * Disclose: * Building or adding on without ________ can lead to problems for both an agent and a seller/buyer.

Permits

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Seller’s Duty to Disclose: * Disclose: - Forgoing permits will result in incorrect ________, differing square footage reports and of course, VALUE.

Tax Records

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: Choose the correct duties in which an agent MUST disclose: Facts that may materially affect the value and desirability of a property Any and all offers in a timely fashion, unless seller dictates otherwise If one party is unable to close on the sale Favor one parties interest more than the other

Facts that may materially affect the value and desirability of a property Any and all offers in a timely fashion, unless seller dictates otherwise If one party is unable to close on the sale

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: Choose the correct statements where an agent MAY NOT disclose: The property being the site of a murder Reports of ghosts or other entities The seller willing to accept a distressed sale Former occupancy of a person with bad manners

The property being the site of a murder Reports of ghosts or other entities The seller willing to accept a distressed sale

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: What form must be given to buyers when purchasing a home within an HOA?

Arizona has specific forms that must disclose the existence of an HOA, its monthly fees, and any additional fees required upon purchasing. It must be given to buyers when purchasing a home within an HOA, and we call it the HOA disclosure form.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: What is the purpose of a listing agreement?

When working with sellers, use of the “Listing Agreement” clearly states that you will be representing the sellers as their agent and outlines duties.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: Why is a Buyer’s Advisory given to buyers?

The buyer is responsible for making all necessary inquiries and consulting the appropriate source, and this is a guide to point buyers toward the right ‘source.’

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: What information is found in the SPDS (Seller Property Disclosure Statement)?

This SPDS will report any known issues the seller knows of. This could be defects, material facts, or concerns the seller may have about their home. IT SHOULD contain anything that a buyer would want to know!

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: The lessor of a home built in 1968 is required to disclose which of the following? Lead Based Paint Any convicted felonies A CLUE Report Expansive soil test results

Lead Based Paint

Their own due diligence and inspections

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: The main obligations behind using standardized disclosure forms in the real estate transaction would be: Protect the sellers Protect the agents Disclosures should protect the public Disclosures should protect the interested parties

Disclosures should protect the public

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: Allowing the buyers and sellers to discuss features, price, or other topics with regards to the sale would be: A violation of the duties of reasonable care A violation of the Ariticle 22 Allowed as it is required for buyers to obtain facts from the sellers Allowed since we are all trying to get the information requested during the inspection period

A violation of the duties of reasonable care

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: Sellers property disclosure statements are invaluable resource for ... 10 days 7 days 5 days 3 days

3 Days

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: AAR Supplied And Approved Forms For Arizona Realtors® (to be used solely and exclusively by members of the ________ Please Refer to Session 13 in your Book to go through this material if you choose to!

Arizona Association Of Realtors®

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: In Arizona Residential Real Estate, what form is provided to "Realtors" to use to aid in the disclosure of any material or adverse defects in a home?

Seller Property Disclosure Statements (SPDS)

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: This party would be wholly responsible for failing to report a known defect.

Sellers or owners of the real property would be held liable.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: Is it possible to sell a property in As-Is condition?

Yes a seller can sell As-Is but there is still a need to have disclosures.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: At the end of the SPDS, what needs to be collected or shown?

There must be signatures from both parties, sellers and buyers.

I've previewed the link provided below as well as looked at the forms in the book for a better understanding of these forms: https://www.aaronline.com/manage-risk/sample-forms/aar-brings-you-standard-forms/ True False

Look At It!

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Arizona Contractors: * IMPORTANT: Arizona contractors performing work over $1000 must be licensed with the ________. * They state all contractors work should be done in a professional and workmanlike manner.

Arizona Registrar of Contractors (ROC)

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Arizona Registrar of Contractors (ROC): * Contractors are liable for the work performed, if properly licensed. * Failure to perform according to the contract could result in owner complaints and lawsuits. * ________ litigation can be costly to all parties.

Construction Defect

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Arizona Registrar of Contractors (ROC): * Arizona Registrar of Contractors (ROC)’s main goal is to protect the public from unlicensed activities. * IMPORTANT: Under Arizona statutes a ________ Year WARRANTY is imposed on completed work by a LICENSED contractor.

2 Year

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Arizona Contractors: * Arizona Registrar of Contractors (ROC)’s main goal is to protect the public from unlicensed activities. o IMPORTANT: Arizona Registrar of Contractors (ROC) will override the BUILDER's offered ________ Year WARRANTY.

1 Year

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Drugs & Disclosures: * IMPORTANT: Meth Labs and the Duty to Disclose falls on the seller and or agent ________ IT IS KNOWN that the property had been used in the manufacturing, sale, use or distribution of illegal drugs. o Drug labs or meth labs, use chemicals deemed to be hazardous to your health.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Drugs & Disclosures: o ________ may or may not be evident and need to be inspected.

Structural Damages

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Drugs & Disclosures: o IMPORTANT: Arizona law requires remediation of the site within ________ Months of removal. o A registered drug lab remediation firm must do the remediation.

12 Months

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Drugs & Disclosures: o IMPORTANT: Arizona law requires remediation of the site within 12 Months of removal. o A registered drug lab ________ must do the remediation.

Remediation Firm

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Drugs & Disclosures: o Upon sale, within ________ Days of signing the contract disclosure is required. o IMPORTANT: The buyer must acknowledge and has 5 Days to elect to cancel the contract. o A $1,000 fine and liability for any harm can result from failure to disclose.

5 Days

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Drugs & Disclosures: o Upon sale, within 5 Days of signing the contract disclosure is required. o IMPORTANT: The buyer must acknowledge and has ________ Days to elect to cancel the contract. o A $1,000 fine and liability for any harm can result from failure to disclose.

5 Days

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Drugs & Disclosures: o Upon sale, within 5 Days of signing the contract disclosure is required. o IMPORTANT: The buyer must acknowledge and has 5 Days to elect to cancel the contract. o A $________ fine and liability for any harm can result from failure to disclose.

$1,000

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Drugs & Disclosures: * Landlords, property managers and or agents are responsible to notify prospective tenants if a property for rent was previously used as a clandestine ________Manufacturing Laboratory.

Drug

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Drugs & Disclosures: o In ADDITION, if the property was a known location of habitual drug use or storage of drug manufacturing chemicals, this requirement for ________ still applies.

Disclosure

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Marijuana Growing: * Medical marijuana being legal in Arizona, dangers from unlawful growing or cultivating of marijuana must be ________.

Disclosed

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Marijuana Growing: * IMPORTANT: Growing illegally could adversely affect a property ________ and safety.

Value

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Marijuana Growing: * IMPORTANT: Wiring, Plumbing and Drainage could be added illegally to grow. IMPORTANT: As a result, ________ or other health concerns can arise that need to be disclosed.

Mold

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Pests: * Living in Arizona we are accustomed to seeing wildlife that out of state buyers may not expect. * IMPORTANT: A short list of Arizona specific pests that should be disclosed if witnessed or known of is: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

o Termites o Roof Rats o Scorpions o Snakes o Bed Bugs o Bees o Wild Animals o Coyotes o Bobcats o Javelina o Deer

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Pests: * Pest Control Inspectors: The ________ is a State agency that licenses, educates and regulates the pest management industry.

Pest Management Division (PMD)

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Pests: * Pest Management Division: Termite or pest control companies are licensed under the “Office of Pest Management” which is a department underneath the ________.

Arizona Department of Agriculture

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Pests: BEDBUGS - Between Landlord and Tenants in Rentals: -Landlords shall NOT ________ rent a property that is known to have bed bugs.

Knowingly

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Pests: BEDBUGS - Between Landlord and Tenants in Rentals: -Tenants shall NOT knowingly move possessions ________ a unit if bedbugs are present.

Into

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Pests: BEDBUGS - Between Landlord and Tenants in Rentals: - IMPORTANT: If a tenant discovers bedbugs after occupancy the tenant MUST notify the landlord within ________ Days time of bedbugs in the property.

3 Days

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Pests: BEDBUGS - Between Landlord and Tenants in Rentals: * The Landlord has ________ Days to inspect the property for bedbugs after a tenant reports them.

7 Days

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Pests: BEDBUGS - Between Landlord and Tenants in Rentals: - If bedbugs are found by the landlord, the landlord has an additional ________ Days to treat the property.

7 Days

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Pests: BEDBUGS - Between Landlord and Tenants in Rentals: - The Tenants can NOT hamper or ________ the entry of landlord or appointee for mitigation of bedbugs.

Deny

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: True or False; It is not necessary to notify perspective tenants if a property was previously a meth lab. True False

False

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: AZ Dept Environmental Quality & Specific Environmental ADEQ Hazards: * ADEQ was created in 1986 and is designed to protect the public’s health and environment as a State following the Federal guidelines. - Designed to prevent the ________ of air, water, and land use, and ensure clear up of it when it occurs.

Pollution

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: ADEQ – AZ Dept Environmental Quality & Specific Environmental Hazards: * IMPORTANT: ADEQ focuses on air quality, water quality, and waste: o ________: Responsibilities include: ambient air monitoring, pollution forecasts, locating and evaluating pollution sources, issuing permits to industrial facilities and vehicle inspection programs.

Air Quality Division

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: ADEQ – AZ Dept Environmental Quality & Specific Environmental Hazards: * ADEQ focuses on air quality, water quality, and waste: o ________: Responsibilities include: Ensures Arizona’s public water system is safe, identifies water pollution, Issues well drilling permits, manages the quality of watersheds, monitors the quality of surface and groundwater.

Water Quality Division

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: ADEQ – AZ Dept Environmental Quality & Specific Environmental Hazards: * ADEQ focuses on air quality, water quality, and waste: o ________: Responsibilities include: ensuring the proper handling of, storage of, and treatment of wastes, maintenance of underground storage tanks, investigating complaints, remediating soil and groundwater pollution, promoting prevention and recycling.

Waste Programs Division

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Septic Systems: * As of 2006, Arizona law now requires a notice of ________ anytime a buyer purchases a property that has a septic tank system or an alternative on-site wastewater treatment system.

Transfer Application

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Septic Systems: * Sellers at their own expense shall have the waste water facility pumped and inspected within ________ Days of close of escrow and a report drafted and provided to the buyer and filed with the State of AZ. - An inspection report MUST be generated and given to buyer.

20 Days

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Septic Systems: * Sellers at their own expense shall have the waste water facility pumped and inspected within 20 days of close of escrow and a report drafted and provided to the buyer and filed with the State of AZ. - An ________ MUST be generated and given to buyer.

Inspection Report

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Septic Systems: o An inspection report must be generated and given to the ________.

Buyer

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Septic Systems: * Conventional vs Non-Conventional Septic Systems: * Arizona defines a ________ septic system as one that has a septic tank followed by a trench, bed, chamber or seepage pit. An alternative system is anything else.

Conventional

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Septic Systems: * Conventional vs Non-Conventional Septic Systems: ________ are ILLEGAL in AZ. NOTE: http://www.azdeq.gov/environ/water/permits/onsitenot.html

Cesspools

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Septic Systems: * ________: * Ground is supposed to be tested for this – which means how fast the ground can absorb liquid waste. If it has been built on, covered over or disturbed, it will not treat the sewage properly, or if it is a rocky soil.

Land Percolation

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Septic Systems: * ________ Owners are responsible for filing the notice of transfer.

New

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Septic Systems: * Bank owned properties, flips or other foreclosed properties must still comply with the ________.

Notice of Transfer

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * Anytime a property is serviced by a domestic well, a specific ________ must be used in conjunction with the well.

Seller’s Property Disclosure Statement (SPDS)

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * This disclosure will report if the well is ________, who it is registered to and ownership interest type.

Registered

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * Its important for buyers to obtain the well Seller’s Property Disclosure Statement (SPDS) ________ to closing on the property as well as verify existence of recordation, location and ownership share.

Prior

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * During inspection period, buyers should be advised to have the well water ________.

Tested

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * Transfer of Well Rights: * There is a process to go through when requesting a change in well ownership set in place with the ________.

1980 Groundwater Code

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * Transfer of Well Rights: *IMPORTANT: The influx of people moving to Arizona forced the State to take over control of the ground water, in an effort to prevent draughts and ________.

Overuse

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * Transfer of Well Rights: * First steps are to ________ the well registration and ownership via the ADWR website.

Verify

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * Transfer of Well Rights: * Transfer Request: There is a $________ Transfer Fee and the buyer/seller can negotiate that at time of offer and sale.

$30

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * ________: Wells that pump less than 35 gallons a minute are exempt from registration and are found in older pumps and small residential properties.

Exempt Wells

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * Exempt Wells: Wells that pump less than ________ gallons a minute are exempt from registration and are found in older pumps and small residential properties.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Well Water: * ________: Federal lands and Indian Tribal lands were guaranteed water rights before the 1980 ground water code was implemented and as such, there are ongoing fights over both the rights to use and control water that flows on Indian lands in Arizona.

Adjudication of Indian Tribe Claims

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: The State agency responsible for the QUALITY of the water would be the ______________.

Arizona Department of Environmental Quality [ADEQ]

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Arizona Specific Agency Disclosures: * ______________: Expansive soil deposits can cause damage to homes built on them. Developers are to identify known expansive soils in the Public Reports.

Expansive Soil Survey

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Arizona Specific Agency Disclosures: * ______________: Determine if the property is within a 100-year floodplain by looking at FEMA Maps. If so it would potentially mean buyers will have to obtain Flood Insurance.

Flood Zones

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Arizona Specific Agency Disclosures: * Flood Zones: Determine if the property is within a ______________ Year floodplain by looking at FEMA Maps. If so it would potentially mean buyers will have to obtain Flood Insurance.

100 Year

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Arizona Specific Agency Disclosures: * ______________: Arizona Geological Survey has publications available to the public. Surveys can assist with information on floods, earthquakes, mass movement, landslides, subsidence and fissures.

Geologic Hazards

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Arizona Specific Agency Disclosures: * Water Availability: ______________ to investigate water availability and supplies. Developers must ensure a 100 year water supply and disclose in the public report.

AZ Department of Water Resources

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Arizona Specific Agency Disclosures: AZ Dept of Water Resources to investigate __________ and supplies. Developers must ensure a 100 Year water supply and disclose in the public report.

Water Availability

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: True or False; The influx of people moving to Arizona forced the State to take over control of the ground water, in an effort to prevent draughts and overuse. True False

True

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: A given property had once been the site of meth manufacturing, and a registered drug lab remediation firm performed the remediation. Who is responsible for disclosing this to buyers?

Meth Labs and the Duty to Disclose falls on the seller and or agent if it is known that the property had been used in the manufacturing, sale, use, or distribution of illegal drugs.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: A Registered Contractor performed a repair on the deck of a home. What warranty length is imposed on the work by the Arizona Registrar of Contractors (ROC)?

Under Arizona statutes, a two-year warranty is imposed on completed work.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: Over what price point must contractors be licensed? What is the purpose of this requirement?

Arizona Registrar Contractors (ROC) contractors performing work over $1000 must be licensed. This is because contractors are liable for the work performed if adequately licensed.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Case Study: What divisions does ADEQ focus on?

ADEQ focuses on air quality, water quality, and waste.

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: An owner informs you that their home had received a new roof last year in response to a leak. Since you now know of this you have to disclose it, but at the same time, you think this may hurt your chances of receiving top offers. Which action could an agent be found guilty of by not disclosing this to potential buyers? Fraud Misrepresentation Acting as an attorney Fiduciary duty

Misrepresentation

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: The lessor of a home built in 1968 is required to disclose which of the following? Lead paint based Any convicted felonies A CLUE Report Expansive soil test results

Lead paint based

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Due Diligence and Information Sources: * An __________ is a report prepared for a real estate holding that identifies potential or existing environmental contamination liabilities.

Environmental Site Assessment

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Due Diligence and Information Sources: * An environmental site assessment is a report prepared for a real estate holding that identifies potential or existing environmental contamination liabilities: * __________: This is generally considered the first step in the process of environmental due diligence. Standards for performing a Phase I site assessment have been promulgated by the EPA.

Phase I - Assessment

A leaking water heater

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Due Diligence and Information Sources: * An environmental site assessment is a report prepared for a real estate holding that identifies potential or existing environmental contamination liabilities: * __________: If a site has been determined to be contaminated, a more detailed investigation involving chemical analysis for hazardous substances and/or petroleum hydrocarbons known as Phase II

Phase II - Assessment

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: What type of well could possibly be exempt from registration? A new well drilled for use in a multi family residential unit An older well used in a small privately owned residence A well that is used for commercial purposes like mining A shared well for 4 or less properties

An older well used in a small privately owned residence

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Due Diligence and Information Sources: * An environmental site assessment is a report prepared for a real estate holding that identifies potential or existing environmental contamination liabilities: * __________: This is a much more detailed investigation of the property and is necessary to uncover additional information before remediation work can take place.

Phase III - Remediation

Their own due diligence and inspections

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Due Diligence and Information Sources: * An environmental site assessment is a report prepared for a real estate holding that identifies potential or existing environmental contamination liabilities: * __________: Environmental engineers typically will conduct additional testing to determine the extent of pollution on the property and how to treat it.

Abatement

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: Where would a buyer file an ethics complaint against their agent? Arizona Dept of Real Estate Agents Broker Arizona Association of Realtors State of Arizona Attorney General

Arizona Association of Realtors [AAR]

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Due Diligence and Information Sources: * An environmental site assessment is a report prepared for a real estate holding that identifies potential or existing environmental contamination liabilities: * __________: This phase develops a plan of remediation, which needs to have the approval of local, state and federal environmental agencies.

Management in Place [Encapsulation]

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: Licensed agents failing to identify as a party in the sale in an advertisement is: False advertising A Felony A Blind Ad Legal

A Blind Ad

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: ADEQ is which agency in the State of Arizona: Arizona Department of Equal Quality in Housing Arizona Department of Environmental Quality Arizona Department of Emergency Quality Arizona Department of Energy Quality

Arizona Department of Environmental Quality

The potential zoning change request

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: As a licensed real estate agent in the state of Arizona it is our duty to disclose offers to our sellers with what time constraints? Within 2 days As soon as practical Whatever what was agreed upon between agent and seller At closing

As soon as practical

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: Your seller informs you during the listing process that their property is serviced by a conventional septic system. What is now required with regards to this listing; The sellers to provide evidence of the septics location The sellers must have the septic system inspected prior to close of escrow The seller must provide inspection reports to Arizona Department Environmental Quality All of these

All of these

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: In Arizona, all Escrow Agencies or agents must be: Licensed by NMLS A certified Notary for buyer and seller Licensed under AZDFI Bonded

Bonded

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: Arizona contractors must be licensed when performing work over: $500 $1,000 $5,000 $10,000

$1,000

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: During the beginning phases of a new development, the developers research had found the existence of expansive soils. Where must a developer disclose what is now known about the conditions of the soils in this development: Subdivision Public Report ADEQ website Advertising materials Not required

Subdivision Public Report

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: Your seller just notified you that their house is being foreclosed on. How long do you have to notify a potential buyer? As soon as discovered 24 hours The next business day 5 business days

As soon as discovered

DISCLOSURES, CONSUMER PROTECTIONS & ENVIRONMENTAL LAWS: Quiz: What does an agent have a duty to not disclose? The next-door neighbor is a convicted sex offender The nature of earnest money The seller is the broker’s brother A buyer’s pending bankruptcy

The next-door neighbor is a convicted sex offender

Section 12: Disclosures, Consumer Protections, and Environmental Laws Flashcards

(173 cards)