Property Conditions and Disclosures

Which of the following could indicate the presence of an underground storage tank? Pipe or vent sticking out of the ground Newer residential development Steep drop off on the property Basement

Pipe or vent sticking out of the ground

How can you determine lot size, easements, and encroachments of a property? Select the answer that would provide the most comprehensive search. Search the property's deed and title history, ask the neighbors, and pace off the property. Review subdivision maps, pace off the property, and check tax records. Check the county recorder's office and local building board. Research the deed and title history, check maps at the county recorder's office, and review land surveys.

Research the deed and title history, check maps at the county recorder's office, and review land surveys.

Full disclosure

Seller must proactively disclose any known defects

Which of the following could be a clue that a property was formerly a waste disposal site? Soft spots, mounds, and discolored soil Pipe or vent sticking out of the ground Plate covering an oil fill area Birds constantly on the property

Soft spots, mounds, and discolored soil

Radon is found in well water and ______. Ceiling tiles Soil Insulation Plastics

Soil

After closing, a buyer discovers the seller wasn't honest about the property condition on the state's required disclosures. What can the buyer do? Ask for a refund of his earnest money. Terminate the contract. Sue the seller for breach of contract. The buyer has no options after closing.

Sue the seller for breach of contract.

Which type of pest may make mud tubes—tunnels that run along your walls—or shed tiny wings? Termites Carpenter ants Powder post beetles Fire ants

Termites

Which statement about radon testing is true? It can only be performed by a licensed professional. It is not necessary. Test kits are not available to the general public. Test kits are available for purchase.

Test kits are available for purchase.

A prospective buyer is curious why a previous owner is selling such a perfect home. The licensee knows that the previous owner recently died due to complications from AIDS. How should the licensee respond to the prospective buyer's inquiry? The licensee can share that the previous owner died from AIDS. The licensee can obtain permission from the seller to reveal the previous owner's AIDS diagnosis. The licensee can disclose that the owner had AIDS, but can't reveal whether the owner died from the disease. The licensee can't disclose that a previous owner had HIV or AIDS.

The licensee can't disclose that a previous owner had HIV or AIDS.

Licensees have a duty to disclose to potential buyers any material, adverse information they actually possess about the physical condition of the property

True

Buyer Peter is eager to make an offer on the two-story home you just showed him, but you're concerned about the back bedroom, since it looks like a relatively recent addition. When Peter asks you why it's an issue, how do you respond? It doesn't fit aesthetically with the rest of the house. You're certain it's not built to code, so Peter shouldn't make an offer on the property. The extra bedroom is inconsistent with the rest of the neighborhood, reducing its value. You'd like to check on the permits for it, so that Peter doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code.

You'd like to check on the permits for it, so that Peter doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code.

easement

a right to cross over or otherwise use another person's land for a specified purpose. A common type of easement is a utility company's right to access a property's lot to maintain its power lines.

Prescriptive easements

are easements gained with regular use that aren't approved by a property's owner. An example is your neighbors ENCROACHING onto your property by moving their fence three feet onto your lot, reducing its size.

Seth is a licensee working for a buyer, Britney. She wants to make sure the seller accepts her offer on a charming Cape Cod, so she plans to make a full-price offer without any contingencies. How should Seth respond? "Since you love this house, this is the best way to make sure you get it. Let's write up the offer and send it over right now." "Your offer may be more attractive if we come in at $5,000 over the list price." "I highly recommend a home inspection contingency to protect yourself in the event there are major defects with the house." "Your offer would be more attractive if it were all cash."

"I highly recommend a home inspection contingency to protect yourself in the event there are major defects with the house."

John and Amy purchased a home warranty when they bought their home. They have found structural damage that could be a detriment to their home. On average, how many years does a home warranty cover structural damage? One year Three years Five years 10 years

10 years

Which of the following can indicate an electrical problem? A broken light bulb A burnt or discolored outlet A switch that's cool to the touch An outlet that only works when the switch is turned on

A burnt or discolored outlet

A burnt electrical outlet or light switch that's warm to the touch are signs of ______. A fault or defect in the electrical system A fault or defect in the HVAC system A fault or defect in the plumbing system A fault or defect in the structural condition of the home

A fault or defect in the electrical system

Which of the following is an example of an easement? Michael installed a basketball hoop next to his driveway, six inches outside his property. The state took ownership of Don's property when no heirs could be located following his death. A path providing neighborhood access to a pond cuts through part of Hillary's property. The city seized a formerly private parcel of land for public use.

A path providing neighborhood access to a pond cuts through part of Hillary's property.

The fibers of ______ are dangerous when inhaled because they can lodge in the lungs and intestines, causing cancer. Radon Asbestos Silicone Lead paint

Asbestos

A sloping hearth is a common ______ issue. Foundation Roof Chimney/fireplace Window

Chimney/fireplace A hearth is a fireplace feature. Cracks or sloping can indicate a problem.

Which of the following is a common problem with roof shingles? Discoloration or curling Water buildup and ice damming Clean fascia Soffit without holes

Discoloration or curling

Seth is a licensee representing seller Dora. Which of these items is Seth required to disclose to prospective buyers about the property, if Dora hasn't already done so? The pink geraniums in the window boxes are fake. Dora keeps sunflowers planted in the back yard because the local birds can eat the seeds. The neighborhood kids like to ride their bikes in Dora's driveway. Dora doesn't use the back door because the steps leading to the yard are rotted.

Dora doesn't use the back door because the steps leading to the yard are rotted.

Which of the following properties would require a lead disclosure? Duplex built in 1959 Single-family home built in 1999 Duplex built in 1979 Commercial building built in 1960

Duplex built in 1959

Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor's property. What is this an example of? Easement Encroachment Eminent domain Necessity

Encroachment

Discoloration in the attic or near windows and doors can indicate ______. Wind damage Drainage issues Fire damage Plumbing problems

Fire damage

Basement wall cracks and leaks can be indicators of ______ problems. Foundation Roof Chimney/fireplace Window

Foundation

Why is a home inspection recommended? It gives the buyer a full and accurate picture of the home's condition. It's required by law for most residential transactions. It's free to the buyer. It helps the buyer identify cosmetic changes that must be made.

It gives the buyer a full and accurate picture of the home's condition.

What's the best way to prevent mold? Keep air circulating and moisture out. Remove gutters and drains. Remodel your kitchen. Keep water running in a slight stream at night.

Keep air circulating and moisture out.

Caveat emptor

Latin for "buyer beware." In real estate, it means that the buyer is responsible for performing due diligence on the property, and the seller isn't responsible for disclosing everything, or for protecting the buyer.

Lead may cause a range of health problems, especially in young children. Which statement about health problems is true? Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death. Lead causes blindness upon contact with the eyes. Lead is associated with coronary heart disease. Lead can be traced to senioritis.

Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.

What does "caveat emptor" mean? Let the buyer beware Let the seller beware Beware of empty spaces Buyer's market

Let the buyer beware

Which of the following could be a sign of a plumbing problem? Copper pipes Rotting around the soffit Cracks in the basement wall Low water pressure

Low water pressure

Most often, what's the first course of action for disputed home warranty claims? Litigation Mediation Arbitration Condemnation

Mediation

Which of the following is an example of an encroachment? Michael installed a basketball hoop next to his driveway, six inches outside his property line. The state took ownership of Don's property when no heirs could be located following his death. A path providing neighborhood access to a pond cuts through part of Hillary's property. The city seized a formerly private parcel of land for public use.

Michael installed a basketball hoop next to his driveway, six inches outside his property line.

How is "adverse" defined with regard to property disclosures? Positive information about a property that's usually something that would increase the property value Information that's considered to be of advantage to the buyer Negative information about a property that usually reduces the property value Information that only one person knows

Negative information about a property that usually reduces the property value