Disclosures - WI Real Estate
Lucas, a landlord, repeatedly refuses to abide by an EPA order that he abate lead-based paint hazards in one of his rental properties. Which of the following penalties are federal authorities permitted to impose? No penalties at all Only fines Only reprimands Prison
Prison
You are working with a buyer who is purchasing an as-is property in Wisconsin. Your duty to inspect ______. Doesn't apply to such transactions Is optional on the part of the agent Is the buyer's sole responsibility Still applies
Still applies
Stu recently sold his three-bedroom home, and the buyer contacted Stu's agent, threatening to sue Stu because of some problems with the property. For which of these problems might Stu most likely be found liable? A pest inspector told Stu that there wasn't any evidence of termite damage, so Stu didn't report any. Turns out, there was. Stu didn't know that the oil tank in the basement had a leak. Stu knew that the well on the property was contaminated, but didn't report it. The property tax record lists the square footage as 5,000 square feet, which Stu relied on so that he didn't have to break out his tape measure.
Stu knew that the well on the property was contaminated, but didn't report it.
Which one of the following is a true statement about radon testing? It can only be performed by a licensed professional. It's not necessary. Test kits are available for purchase. Test kits are only available to certified professionals.
Test kits are available for purchase.
Draco's client, Ruby, receives a Real Estate Condition Report that contains an inaccurate assertion of a defect. Ruby has ______ from the receipt of that report to rescind her offer in writing. Five days Seven days Three days Two days
Two days
Which of the following is described as an area that is protected by the Clean Water Act where standing water that supports aquatic plants and animals is located and groundwater is filtered? Floodplain Tidal zone Waterway Wetland
Wetland
Sallie is selling her condo in Madison. Which of the following seller disclosure forms is she not required to complete? An addendum that contains additional information about the condominium and the condominium association RECR WB-11 Residential Offer to Purchase Wisconsin condominium seller disclosure form
Wisconsin condominium seller disclosure form
How many days are sellers required to give buyers to conduct a risk assessment for lead-based paint or lead-based paint hazards? 10 21 30 Three
10
Your seller client must include a lead-based paint disclosure if her home was built prior to ______.
1978
Which of the following best describes an adverse fact? A condition or occurrence that is not known to the contract parties A condition or occurrence that the buyer is likely to find annoying A condition or occurrence that the licensee knows about, but the client doesn't A condition or occurrence that would present a significant health risk to occupants
A condition or occurrence that would present a significant health risk to occupants
Which of the following types of death, if it occurred on the property, is a required disclosure in Wisconsin? A death due to a carbon monoxide leak on the property A death due to the previous owner having a stroke A death due to the previous owner having HIV/AIDS A suicide on the property
A death due to a carbon monoxide leak on the property
Harry's new listing needs a complete redo. The seller filled out a RECR and marketed the property "as is." What can the buyer include in his offer to protect himself if serious defects are discovered? A home inspection contingency An as-is protection clause A request for a discount A right-to-cure clause
A home inspection contingency
Before listing his home, Wisconsin seller Miles wants to identify any defects in his home. Who's best suited to identify a property defect? A licensed home inspector The buyer The licensee The seller
A licensed home inspector
A buried fuel oil tank that is no longer in use is considered an example of _______. A material adverse fact An adverse fact An observable fact A property disclosure
A material adverse fact
Wisconsin seller Bridgette isn't sure what she needs to write down on her disclosure form. Which of the following items would NOT be considered a material defect that must be disclosed to potential buyers on the WB-11 Residential Offer to Purchase form? A leaky roof A newly replaced water heater Rotting support beams Unsafe radon levels in the home
A newly replaced water heater
Which of the following examples is considered a material defect on a property? An obvious problem with the property, whether or not it impacts the property's value A problem with the building materials or the structure A problem with the property or any part of it that would have significant negative impact on the property value or pose an unreasonable risk to the occupants A problem with the property that is minor and does not affect the property value or pose a risk to the occupants
A problem with the property or any part of it that would have significant negative impact on the property value or pose an unreasonable risk to the occupants
Stephen is a qualified third party who's taking soil samples from a property. Stephen is conducting ______. An analysis An inspection A review A test
A test
Richie is selling his condominium unit in Madison. He's completed the property condition representation on the WB-11 Residential Offer to Purchase and the RECR. What other information must he provide to the buyer? An addendum from the condominium association attorney that provides the details of any pending litigation An addendum that contains additional information about the condominium and the condominium association An addendum that contains the condominium association insurance and attorney information An addendum that details the condominium association liability for shared spaces and amenities
An addendum that contains additional information about the condominium and the condominium association
The fibers of what material are dangerous when inhaled because they can lodge in the lungs and intestines, causing cancer? Asbestos Lead paint Radon Silicone
Asbestos
Which product's fibers are dangerous when inhaled because they can lodge in the lungs and intestines, causing cancer? Asbestos Lead paint Radon Silicone
Asbestos
______ is a naturally occurring material that was once widely used in building materials, because it is fire-resistant and has some insulating properties. Asbestos Carbon monoxide Lead Radon
Asbestos
Which of the following would a home inspector note as a defect in a report due to its link to lung cancer? Asbestos tiles in a basement Cedar shake siding Copper water pipes Old linoleum tiles in a kitchen
Asbestos tiles in a basement
Licensee Ely's seller client refuses to complete an RECR. Ely should ______. Ask the client to sign a Seller Refusal statement Drop the client Fill out the RECR for his client Move forward with the transaction
Ask the client to sign a Seller Refusal statement
Which of these items meets the Wisconsin statutory definition of a defect? Broken carbon monoxide monitor Poor patch job on an interior wall Ripped carpet Smoke detector with dead batteries
Broken carbon monoxide monitor
How can a homeowner identify asbestos? By hiring a certified asbestos consultant By looking at it with a black light By performing a normal visual inspection By using an asbestos test kit
By hiring a certified asbestos consultant
An adverse fact is best defined as a ______. Condition or occurrence that's cosmetic in nature and doesn't impact property value or structural integrity Condition that can significantly affect property value, structural integrity, or health Fact that's immaterial to the transaction if it's only impacting the property value Structural defect that doesn't present a significant health risk to the property's occupants
Condition that can significantly affect property value, structural integrity, or health
When it comes to vacant land in Wisconsin, what's your duty related to inspection? Conduct a reasonably competent, diligent inspection if the land is accessible Create a path to access the land for the buyer and yourself to walk its entirety Hire a land surveyor or other land inspector to find material defects Walk the entirety of the property in a grid-style search
Conduct a reasonably competent, diligent inspection if the land is accessible
Which of these is a violation of the RRP Rule? A homeowner performs DIY work in a home built prior to 1978. A seller of a home built in 1952 doesn't make the appropriate lead disclosures. Contractors from a home improvement store install windows or doors. Contractors perform renovations that disturb lead-based paint without holding proper certification.
Contractors perform renovations that disturb lead-based paint without holding proper certification.
Seller Stan knows there is asbestos in his insulation. Stan should _______. Assume his agent will keep the information confidential Disclose the information in the real estate condition report Keep the information to himself Let the inspector find it
Disclose the information in the real estate condition report
Which of the following properties requires a lead disclosure? Commercial building built in 1960 Duplex built in 1959 Duplex built in 1979 Single-family home built in 1999
Duplex built in 1959
What must sellers provide prospective buyers of homes built prior to 1978, in addition to the federally required disclosure form? EPA lead safety pamphlet List of reputable home improvement contractors Verbal assurance that the home is lead-free before offering it for sale Written proof that the home is lead-free
EPA lead safety pamphlet
Filomina is preparing to sell her home and thinks she should test for radon. Which of the following options about radon testing is true? Filomina can hire a professional to perform the test, or she can buy a test kit and submit it to a lab for analysis. Filomina can purchase a home test kit and interpret the results herself. Filomina is required to test for radon and perform any necessary mitigation before placing her property on the market. Filomina must hire a certified testing company to perform the radon test and interpret the results.
Filomina can hire a professional to perform the test, or she can buy a test kit and submit it to a lab for analysis.
Upon receipt of the condominium-related disclosures required by Wisconsin law, how many days does the prospective purchaser have to rescind an offer without liability? 10 days 15 days Five days One week
Five days
What type of insurance would be appropriate for property owners who live in a community that's designated as a special flood hazard but has measures in place to reduce future flood risk? Casualty insurance through the National Flood Insurance Program Flood protection through the National Flood Insurance Program Homeowners coverage through the National Flood Insurance Program Universal coverage through the National Flood Insurance Program
Flood protection through the National Flood Insurance Program
The Nicholsons just bought a mid-century modern home that will require lead paint abatement. Tom and Genna, their three-year-old daughter Grace, and Genna's mom Pat are waiting to move into the split level until the abatement is complete. Who would be at the most risk of adverse lead effects if they moved in before the abatement was finished? Genna Grace Pat Tom
Grace
In contrast to land that has buildings on it, vacant land in Wisconsin _______. Doesn't have access to a road Doesn't have electricity Doesn't have water Has no structures built on it
Has no structures built on it
Roger's adult daughter lives with him in is Wisconsin home. He's licensed, but is selling his home himself. His daughter is infected with HIV. What must Roger disclose about his daughter's condition? He may not disclose anything, as this would be a fair housing violation. He needs to disclose that a resident on the property has HIV and how the person got the disease. Roger doesn't does to disclose anything because his daughter isn't the property owner. Roger needs to disclose that a resident of the property has HIV.
He may not disclose anything, as this would be a fair housing violation.
Why is asbestos considered hazardous? It can cause serious lung disease and cancer. It causes a skin rash. It causes dementia if levels of exposure are high. It causes premature birth.
It can cause serious lung disease and cancer.
Why is asbestos an environmental issue? It causes brain clouds. It causes chronic lung disease. It causes depression. It takes up space in a landfill.
It causes chronic lung disease.
Which one of the following is a true statement about radon? It's a manmade chemical. It's a naturally occurring gas. It's a problem outdoors. It's safe at any level.
It's a naturally occurring gas.
Wisconsin buyer Judy had prior knowledge of a property defect before entering into an offer. Because of this, ______. Judy doesn't have recession rights based on the defect Judy has extended recession rights based on the defect Judy has limited recession rights based on the defect Judy still has recession rights based on the defect
Judy doesn't have recession rights based on the defect
Federal law requires disclosures about what potential hazard in residential properties built prior to 1978? Arsenic Asbestos Lead Radiation
Lead
Sellers, landlords, and real estate agents are required to include a ______ in the contract or lease if the real estate was built prior to 1978. Denial of responsibility for lead-based hazards Lead abatement discount Lead warning statement Notice of local lead renovators
Lead warning statement
Jenna's home was built in the late 1800s and served as a place to treat patients who suffered from tuberculosis (several of whom died on the premises), was raided during the Prohibition era while it served as an illegal speakeasy, and may be haunted by a previous homeowner who committed suicide during the Great Depression. When selling the home, what disclosures must be provided? Infectious disease disclosure Lead-based paint disclosure Site of suicide disclosure Stigmatized property disclosure
Lead-based paint disclosure
Radon is an important environmental issue because it causes what? Brain cancer Heart attacks Lung cancer Permanent paralysis
Lung cancer
Which of the following is required by Wisconsin Statute Chapter 709? Licensees must disclose known defects to the buyer at the time of the offer. Listing firms must disclose known defects to the buyer at the time of the offer. Most residential property owners aren't required to disclose known property defects when they transfer owned property. Most residential property owners are required to disclose known property defects when they transfer owned property within 10 days of offer acceptance.
Most residential property owners are required to disclose known property defects when they transfer owned property within 10 days of offer acceptance.
Darlene suspects a property has a material adverse fact. Per Wisconsin state law, Darlene______. Doesn't have to reveal anything she isn't 100% certain about Is required to hire a third party to investigate Must disclose the information in writing Should rely on the seller's disclosures
Must disclose the information in writing
What is the federal program that was created to help mitigate future flood losses across the country? Federal Flood Loss Prevention Program (FFLPP) Federal Flood Loss Program (FFLP) National Flood Insurance Program (NFIP) National Flood Mitigation Fund (NFMF)
National Flood Insurance Program (NFIP)
Pursuant to Wisconsin law, when must a seller provide condo-related disclosures to prospective buyers? By the day of closing No later than 15 days after accepting the buyer's offer No later than 15 days before closing No later than five days after accepting the buyer's offer
No later than 15 days before closing
If you're inspecting vacant land, you're required to ______. Hire a qualified inspector to assist because land is different than a structure Observe the property from at least one point on or adjacent to the property Stop inspecting it because it's prohibited per licensing regulations Walk the entire property, similar to a grid search
Observe the property from at least one point on or adjacent to the property
Which of the following is considered a material adverse fact in Wisconsin? Cracked kitchen tile Loose banister Old carpeting Persistent basement moisture after heavy rainfalls
Persistent basement moisture after heavy rainfalls
Nico received a copy of the Real Estate Condition Report and doesn't like what he sees. He wants to rescind the contract based on the RECR. May he do so without penalty? No; buyers may not back out of a contract based upon the RECR. No; he may only back out if he forfeits his deposit. Possibly, if he can prove that he doesn't have the funds to cure the defects listed in the RECR. Possibly, if he didn't know of any defects prior to making his offer, and the report was inaccurate or incomplete.
Possibly, if he didn't know of any defects prior to making his offer, and the report was inaccurate or incomplete.
Shelly, a listing agent, notices that an inspection report prepared by a third-party inspector contradicts some of the information her seller client gave her. Per Wisconsin law, Shelly should _______. Encourage her client to come forward Keep the contradictions confidential Reveal the contradictory information Trust the third-party inspector
Reveal the contradictory information
Dwight, the listing representative, asks his client, Maisey, to complete a Real Estate Condition Report. Maisey refuses this request. This means that Dwight should use which of the following forms? Addendum S: Lead-Based Paint Disclosures and Acknowledgments Agency-Broker Disclosure to Client Seller's Refusal to Complete Condition Report WB-42 Amendment to the Contract Listing
Seller's Refusal to Complete Condition Report
Which of the following about radon disclosure in Wisconsin is true? If radon is present, the sales contract must include an estimate for the price of mitigation. Real estate professionals must give buyer clients a list of professional radon mitigators. Real estate professionals only have to disclose the presence of radon if their client asks about it. Sellers must disclose any knowledge of radon in the sales agreement.
Sellers must disclose any knowledge of radon in the sales agreement.
Radon is found in well water and where else? Ceiling tiles Insulation Plastics Soil
Soil
Based on Megan's Law, who is responsible for determining if a registered sex offender lives in the neighborhood? The buyer The buyer's broker The listing broker The seller
The buyer
A Wisconsin buyer made an offer to purchase a condominium. Which statement best describes the disclosure timeline for the transaction? The seller must provide the required condo-related disclosures no later than 15 days after offer acceptance. Upon receipt of those disclosures, the buyer has 15 days to rescind the offer without liability. The seller must provide the required condo-related disclosures no later than 15 days after offer acceptance. Upon receipt of those disclosures, the buyer has five days to rescind the offer without liability. The seller must provide the required condo-related disclosures no later than 15 days before closing. Upon receipt of those disclosures, the buyer has five days to rescind the offer without liability. The seller must provide the required condo-related disclosures no later than five days after offer acceptance. Upon receipt of those disclosures, the buyer has five days to rescind the offer without liability.
The seller must provide the required condo-related disclosures no later than 15 days before closing. Upon receipt of those disclosures, the buyer has five days to rescind the offer without liability.
Is it required for a license holder to disclose information surrounding a death at a property if that death were a result of a defect on the property? No. A licensee is only required to disclose information pertaining to illness or death by natural causes on the property. No. The licensee is not required to disclose this information. Yes. However, the licensee could wait to disclose this information until the property was under contract. Yes. If a death occurred because of a defect on the property, a licensee must disclose this information when listing or selling that property.
Yes. If a death occurred because of a defect on the property, a licensee must disclose this information when listing or selling that property.