Real Estate Chapter 07 Allied School

A(n) __________ disclosure addresses naturally occurring events that will have a negative effect on the environment.

natural hazard Hint: A natural hazard is a threat of a naturally occurring event that will have a negative effect on people or the environment.

The U.S. Environmental Protection Agency (EPA) and the Surgeon General of the United States recommends that homes should be tested for:

radon Hint: Numerous federal, state, and local laws have been enacted to address the problems created by environmental hazards. The U.S. Environmental Protection Agency (EPA) and the Surgeon General of the United States have recommended that all houses should be tested for radon.

What information does the Seller's Real Property Disclosure Statement contain?

Any known defects and potential problems that might affect the health and safety of the buyer or the property value Hint: The Seller's Real Property Disclosure Statement reveals what the seller knows about the condition of the property and lists all known defects as well as any potential problems that might affect the health and safety of the buyer or the property value.

What can the buyer do if he or she receives a real property disclosure statement and finds material information that is unacceptable?

Cancel the contract by written notice to the seller within a specified timeframe Hint: A buyer may make an offer that is contingent upon the seller completing, signing, and delivering to the buyer a written real property disclosure statement within three days from the effective date of the contract. If the statement discloses any material information about the property that is unacceptable to the buyer, the buyer may cancel the contract by written notice to the seller within three days from receipt of the seller's written statement.

What mandatory and optional disclosures can be added to a Residential Contract for Sale and Purchase?

Contract addenda forms Hint: Florida REALTORS® makes contract addenda forms available to its members. The forms address a number of mandatory and optional disclosures. The forms may be added to a Residential Contract for Sale and Purchase to expand upon disclosures made in the contract. A wide range of required and optional disclosures is covered.

__________ means the seller must disclose to a buyer all facts that materially affect the value of property.

Full disclosure Hint: Full disclosure means that the seller must disclose to a buyer all facts materially affecting the value of the property, which are not readily observable and are not known to the buyer.

Which of the following is not true regarding energy-efficiency disclosures?

Florida is the only state that does not need to adhere to laws regarding energy efficiency Hint: Federal and state laws prescribe minimum energy conservation standards for all new construction. Local governments may also have ordinances that impose additional energy conservation measures on new and/or existing homes.

What defines a latent defect?

One that cannot be reasonably observed by an average buyer Hint: A latent defect is a defect that cannot reasonably be observed by the average buyer.

What defines a material defect?

One that would cause a buyer not to buy the property or offer a lower price Hint: A seller's duty of full disclosure includes revealing material defects. A material defect is one that would cause a buyer not to buy the property or offer a lower price.

The __________ is a detailed statement that the seller completes and provides to a potential buyer of residential property.

Seller's Real Property Disclosure Statement Hint: Disclosures are frequently made early in the sale process in a Seller's Real Property Disclosure Statement (Seller's Disclosure). The Seller's Disclosure is a detailed statement that the seller completes and provides to a potential buyer of a residential property (one-to-four units).

Which of the following is not an example of a natural hazard?

Stigmatized property Hint: A natural hazard is a threat of a naturally occurring event that will have a negative effect on people or the environment. Sellers need to disclose the possibility of flooding or if a sinkhole insurance claim was made on the property.

Which of the following is true regarding full disclosure in Florida?

The seller has a broad duty of full disclosure Hint: In Florida, a residential seller has a broad duty of full disclosure. One of the most critical responsibilities placed on real estate associates and brokers is to see that the seller meets the duty of full disclosure.

A defect, material or latent, must:

actually exist. Hint: Whether the defect is material or latent, the seller must know that the property defect or condition actually exists. It cannot be rumor, hearsay, or speculation.

If a seller accurately completes a Seller's Real Property Disclosure and provides the form to prospective buyers, and the buyer accepts the conditions disclosed by the seller, the seller will:

be free of further liability to the buyer. Hint: Sellers are not legally required to complete a Seller's Real Property Disclosure Statement. However, a seller may protect himself or herself from liability by doing so. If a seller accurately completes a disclosure form and provides the form to prospective buyers before the sale is under contract, and the buyer accepts the conditions disclosed by the seller under the terms of the contract, the seller will be free of further liability to the buyer.

According to the Florida Building Energy-Efficiency Rating Act, the prospective buyer must receive:

energy-efficiency information brochure before signing a purchase contract. Hint: Under the Florida Building Energy-Efficiency Rating Act [F.S, §553.996], a prospective buyer must be given an energy-efficiency information brochure prior to signing a sale and purchase contract. This brochure notifies the buyer of an option for obtaining an energy-efficiency rating on the building.