Section 11 Unit 1

Donald and Martina decided to purchase a newly built home, and their agent, Ed, recommended that they get a professional home inspection done. The couple tells Ed that they thought inspections were only for older homes. How should Ed respond to that?

Ed should remind them that every dwelling, no matter the age or size, should have a home inspection.

Sellers who are reluctant to fill out a property condition disclosure statement need to know that ______.

Full disclosure will offer more protection from liability lawsuits

What does "caveat emptor" mean?

Let the buyer beware

In non-full-disclosure states, whose responsibility is it to notify sellers of their duty to disclose required items?

Licensee representing the seller

When a buyer finances a newly built home with a Federal Housing Administration loan, what does the FHA require the builder to do?

Purchase a third-party home warranty to protect the buyer

For home sellers, which of the following is a benefit of the property condition disclosure statement?

The disclosure statement provides the seller with protection against liability and potential legal action.

Assuming licensee Shannon has actual knowledge of all of the following property issues, which of these issues should she disclose to prospective buyers?

The upstairs bathroom has a leaky toilet.

Your buyer clients Josie and Terry made an offer that was accepted on a cute bungalow in a city neighborhood. They just received the inspection report and were delighted to see only minor condition issues. They'd like the sellers to replace two windows that have broken seals. In response, the sellers asked for a copy of the inspection report. What must you do?

You can only provide a copy if you get permission from Terry and Josie.

Your buyer clients Sylvie and Daryl reviewed their inspection report and decided that they would address small repairs themselves, but they want the seller to have regrading done to direct water away from the house. What is your responsibility at this point?

You need to communicate to the listing agent that the buyers are requesting regrading.

Insurance claims might not appear on a CLUE report for a property if the claims were made more than ______ years ago.

seven