Unit 3: Review Questions

A selling agent must comply with agency disclosures to the buyer: a. prior to qualifying the buyer b. before the buyer executes an offer c. upon delivery of the seller's acceptance d. prior to showing property

b. before the buyer executes an offer

Real estate disclosure laws apply: a. uniformly to all real estate transactions b. primarily for 1 to 4 residential units c. to buyer disclosure only d. to disclosures to principals only

b. primarily for 1 to 4 residential units

Brownfields is a term related to: a. insect infestation b. soil contamination c. undeveloped acreage d. seller financing

b. soil contamination

Compliance with environmental hazards disclosure requires: a. that the Alquist-Priolo Act be complied with b. the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants c. chemical tests of the soil for all dangerous contaminants d. that the seller post a bond to cover damages by hazards discovered at a later date

b. the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants

Which seller(s) must provide a Real Estate Transfer Disclosure Statement? a. the seller of a lot b. the seller of a 4-unit apartment building c. the seller of a 16-unit apartment building d. all of these

b. the seller of a 4-unit apartment building

A right of recession is provided by law for purchase agreements involving all EXCEPT: a. 1-4 unit residential properties b. time-shares c. undivided interest subdivisions d. both b and c

a. 1-4 unit residential properties

Which statement regarding earthquake safety disclosure is TRUE? a. It applies to 1-4 unit residential properties b. It applies only to homes built before 1930 c. The buyer can waive her right to a hazard's report d. Delivery of a copy of The Homeowner's Guide to Earthquake Safety is evidenced by an affidavit from the agent

a. It applies to 1-4 unit residential properties

The buyers sign that they have received a booklet relating to: a. environmental hazards b. floods, tornadoes, and earthquakes c. foreclosure rights d. rescission rights

a. environmental hazards

Under Easton, an agent's duty of inspection and disclosure covers: a. all types of property b. accessible and inaccessible areas c. a visual inspection and known or should have known defects d. none of these

c. a visual inspection and known or should have known defects

A fiduciary relationship applies to a real estate licensee and to: a. all parties the agent has dealings with b. the Department of Real Estate c. his or her principal d. buyers only

c. his or her principal

The purpose of the Subdivided Lands Law is to: a. prohibit premature subdivisions b. set minimum physical standards c. protect purchasers from fraud d. allow for a uniform growth pattern

c. protect purchasers from fraud

Which of the following statements regarding agency disclosure is TRUE? a. The confirmation of agency must be in writing b. The 3 steps of the disclosure process are disclose, elect, confirm c. The selling agent must confirm the agency before the buyer makes an offer d. All of these are true

d. All of these are true

Which of the following statements regarding an agent's duty in a real estate transaction is TRUE? a. An agent has a fiduciary duty to the principal b. An agent must disclose any known detrimental information to a buyer, even when the agent represents the seller c. Any material facts the agent becomes aware of must be disclosed to the principal d. All of these are true

d. All of these are true

Which of the following statements regarding agency disclosure is TRUE? a. An agent need not provide a seller of a commercial building with an agency disclosure b. The listing agent cannot elect to be only a buyer's agent c. Both of these are true d. Neither of these are true

d. Neither of these are true

A Transfer Disclosure Statement must be provided to the buyer when the sale involves: a. a vacant lot b. a commercial building c. all of these d. a 3-unit residential building

d. a 3-unit residential building

An agent's inspection under Easton v. Strassburger (as codified by state statutes) applies to: a. visual inspections b. accessible areas only c. 1 to 4 residential units d. all of these

d. all of these

The Seller Financing Disclosure Statement provided to both buyer and seller provides: a. credit terms b. a warning as to balloon payments c. disclosure of deferred interest d. all of these

d. all of these

The earthquake safety disclosure statement: a. is voluntary b. applies to 1 to 4 residential units c. must be signed by buyer and seller d. both B and C

d. both B and C

An agent need not disclose to a buyer: a. that a former owner had AIDS b. that there was a death by murder or suicide on the property more than 3 years ago c. that there was a death on the property within the last 3 years d. both that a former owner had AIDS and that there was a death by murder or suicide on the property more than 3 years ago

d. both that a former owner had AIDS and that there was a death by murder or suicide on the property more than 3 years ago

The proper order of the steps taken in agency disclosure is: a. elect, disclose, confirm b. elect, confirm, disclose c. confirm, elect, disclose d. disclose, elect, confirm

d. disclose, elect, confirm