Practice - Unit 3 Questions

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

a. his or her principal. Relationship of Trust. p. 92

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

b. before the buyer executes an offer. It is included in offer form. p. 99

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

b. primarily for 1 to 4 residential units. Such as a Transfer Disclosure Statement. p. 92

Compliance with environmental hazards disclosure requires... a. chemical tests of the soil for all dangerous contaminants. b. the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants. c. that the seller post a bond to cover damages by hazards discovered at a later date. d. 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. Explains possible hazards. p. 116

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

c. a 3-unit residential building. 1 to 4 residential units. p. 99

An agent need not disclose to a buyer that: a. a former owner has AIDS. b. there was a death by murder or suicide on the property more than 3 years ago. c. both A and B. d. neither A nor B.

c. both A and B. But law is unclear as to the need to disclose for deaths within three years. p. 109

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

c. disclose, elect, confirm Disclose as soon as possible, confirm with offer. p. 99

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. Plus credit information, cash out sellers, warnings, etc. pp. 122-123

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. With reasonable expertise of a licensee. p. 106

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. Residential Earthquake Hazards Report. p. 110