Section 6 Unit 1 Lesson 1, 2, 3

Yes. Lead based paint is an issue in homes built before 1978

A house was built before 1978. Is any special disclosure required?

Don't

A house was built in 1917. You provide a lead based paint disclosure form only when requested? Do or don't

Do

A house was built in 1917. You provide a lead based paint disclosure to our prospective buyers? Do or don't

Don't

A house you have listed is on the market because the previous ownerRecently passed away.You disclosed that she had HIV Do or don't

Investigate this discrepancy

A property listed I was having four bedrooms and 2 1/2 bathrooms.However, when showing your buyer clients to property, you only count three bedrooms.As your agent what should you do as part of your due diligence? -Call the police -Demand homeowner building another bedroom -Ignore discrepancy -Investigate this discrepancy

Do

A seller discloses her house is on a public sewer line, but you know other houses in this area are septic. You investigate the sailors claims Do or don't

He referred to his opinion on the valley of the property as an appraisal

Charles, is a real estate professional, has just finished touring a property he'd like to list for sale. When talking to the owner about the property and comparing it to other properties recently sold in the area, he tells the owner he appraises the property at a value of 350,000. What, if anything, the Charles do wrong. - He inspected the property -He offered an opinion about the value of the property -He referred to his opinion on the value of the property as an appraisal -He talk to the owner without having a listing agreement in place

Duct

Create your own real estate forms do or don't

No. Do not interpret contract provisions. You can generally explain the purpose of a provision, but don't provide advice to the client regarding the legal implications of those provisions.

Do you Interpret contract provisions?

No

Do you charge a fee for preparing transaction documents?

True

Don't advice clients on landlord/tenant rights and responsibilities True or false

Do

Explain classes to your clients Do or don't

You own the property

In addition to serving as the listing agent for several clients, your own house is also on the market. You receive a call from another licensee who wants to show her buyer your house. What must you immediately disclosed to the buyers agent and buyer?

Kennedy is representing his LLC in the purchase of a commercial building. Kennedy is part of the LLC that is purchasing a commercial building so he must disclose his interest to all parties to the transaction

In which of these situation does the licensee have a disclosable ownership interest in the property? -Carson represents both the buyer and the seller in a transaction. -Kennedy is representing his LLC in the purchase of a commercial building -Rebecca is listing her neighbors vacation home -Roger is listing the property that he sold to the current owner eight years ago

Don't

Interpret legal consequences of specific actions Do or don't

No, Landon shouldn't place a sign on Morris property without Mari's written permission.

Landon is listing agent for Mari's property. Mari is moving out of state for a new job, so the house will be vacant for sometime, depending on how long it takes to sell. Mari is pretty adamant about not having a sign in his yard, especially after he moves. There hasn't been any movement on the property. Landon places a sign in the yard, hoping it will drum up some interest. is this okay

Don't

Predict the amount that property taxes may increase due to a sale Do or don't

Do

Provide a qualified list of professionals to your clients Do or don't

Don't

Recommend a specific professional Do or don't

Do

Recommend buyers obtain professional home inspection Do or don't

Yes, licensees can use standard forms originally created or approved by an attorney

Roberto, a licensee, Filled in the blanks what is standard form used in his brokerage firm. Is this okay?

Due diligence means investigating any potential discrepancy of a material nature. This is true whether you're a buyer agent or seller's agent

Sellers disclosures say the house is on a public sewer and water, but you know the neighborhood used to be all septic. Do you have a responsibility to investigate

She is related to the seller (her mother)

Susan is a real estate licensee her mother is moving to a facility for active seniors and half ask Susan to sell her home.What information does Susan need to disclose to prospective buyer?

Yes. You have a responsibility to investigate any discrepancies of a material nature

The MLS listing says 2000 ft.², but when you showed the property to your buyer, it seems smaller. Should you inquire about this?

No. In fact, you're for bidding to disclose this

The former owner of the house your buyer purchase had HIV. Should you disclose this?

Not ethical

The licensee Is the listing agent on her parents property, but keeps this fact confidential from prospective buyers Ethical not ethical

Ethical

The licensee listing a property cooperates with the buyers agent Ethical not ethical

Not ethical

The licensee modifies the listing price of a property above market value in an effort to win the listing. Ethical or non-ethical

Not ethical

The licensee offers advice on the condition of the property's roof Ethical not-ethical

Not ethical

The licensee promote his own interest ahead of the clients. Ethical not ethical

Ethical

The licensee treat all parties honestly, even costumers Ethical not ethical

To recommend a buyer have a professional inspection preformed

What an agent responsibility related to home inspections?

Code of Ethics

What does COE stands for?

National Association of Realtors

What does NAR stands for?

Real Estate Settlement Procedures Act

What does RESPA stands for?

Make sure all parties have copies of the paperwork and that is retained for the statutory.

What is a licensee's responsibility related to the paperwork in a real estate transaction?

Encourage the client to engage an attorney to drop the form

What to do if your client or transaction requires a form not provided by your association firm

Make changes only to the degree allowed by law in your state

What to do when you have to make changes to the form (adding or striking provision)

You must ensure that all parties have a signed copy of any transactional paperwork they've signed an you must retain records for the statutory.

What's your responsibility concerning paper work in a real estate transaction?

Interpreting the legal consequences of the clients actions

Which of the following is considered on unauthorized practice of law? -Explaining a clause in a contract to a client -Interpreting the legal consequences of the clients actions -Using existing forms an attorney has reviewed -Using standard language for addenda

A licensee shall not accept compensation from more than one party to a transaction without the full knowledge and consent of all parties

According to the code of ethics which of the statement is more accurate when accepting compensation? -A licensee shall not accept compensation directly from more than one party to a transaction. -A licensee shall not accept compensation from anyone. -A licensee shall not accept compensation from more than one party to a transaction without consent from the client. -A licensee shall not accept compensation from more than one party to a transaction without the full knowledge and consent of all parties

yes

Always encourage clients to seek legal advice before

No.

Are realtors allowed to drive their own agreements or forms?

Do not: This clause in the contract says that if the seller breaches the contract, you're guaranteed a full refund of your earnest money

do: This clause in the contract describes what happens if either party breaches the contract

Writing contract addenda or additional provisions that cover unfamiliar circumstances

Unauthorized practice of law and acting outside the scope of one's expertise are similar issues. Which of the following circumstances specifically relate to the unauthorized practice of law? -Predicting a specific tax increase or decrease -Predicting the return on investments for a rental property -Recommending specific investments -Writing a contract addenda or additional provisions that cover unfamiliar circumstances

Yes

Use approved agreement forms from your local or state association? Yes or no

Do

Use existing forms that an attorney has to reviewed

Yes. You must disclose a personal interest in a property to all parties

You are the partial owner in the property you've listed. Should you disclose this?

You must disclose your agency relationship with the seller at the first set of substantive contact.

You received a call from a buyer who is interested in one of your listings what you must disclose?

You must account for all monies placed in your trust

You've been interested with an earnest money check. What's your responsibility?

No. always recommend buyers to get an inspection. This is part of their due diligence, And advocating for its part of yours. If a buyer wants to waive the inspection, get a waiver in writing on a document that states that you caution against waiving the inspection

Your buyer client love the house and wants to make sure they'll get it because there's another competing offer. Should you recommend they waived the inspection contingency?