Property Condition Disclosure

The Act does not obligate the seller to make any specific investigation or inquiry in an effort to complete the disclosure statement.

*NOTE*

The seller must disclose material defects of which he has actual knowledge.

*NOTE*

RRPDA applies to any residential real property, w/ some exceptions:

- Under a court order - From a mortgagor to a mortgagee by deed - From one co-owner to other co-owners - Pursuant to testate or intestate succession - Legal descendants of the sellers - Governmental entity - Newly-constructed and has never been occupied

If a material defect is disclosed, the prospective buyer has a ___ business-day right of rescission.

3

What MUST be printed on or included with the Property Disclosure Report? A) A copy of the actual Disclosure Act B) A copy of the inspection report C) An affidavit signed by the managing broker who has the listing D) The seller's contact information including phone number and email address

A) A copy of the actual Disclosure Act

A property may have hidden defects undiscoverable by ordinary inspection that jeopardizes structural integrity or an occupant's safety, these items are defined as: A) Latent defects B) Material defects C) Stigmatized defects D) Latent misalignment

A) Latent defects

The Deceptive Trade Practices Act (DPTA) can come to bear on a real estate licensee when: A) an agent lies to get someone to put in a contract on a property. B) a broker advertises a property on the internet. C) an agent holds an open house for another agent. D) an agent gives a client a list of home inspectors to choose from.

A) an agent lies to get someone to put in a contract on a property.

In Illinois, the Residential Real Property Disclosure Act requires that when a residential seller signs the listing agreement, he or she must prepare a disclosure document completed by any of the following except the A) licensee. B) seller. C) seller's attorney. D) seller's power of attorney.

A) licensee.

Is negligent misrepresentation practiced deliberately or accidentally?

Accidentally

Which of these transfers of residential real property are exempt from the Illinois Property Disclosure Act? A) Jim sold his home to one of his fraternity brothers. B) Builder Frank sold a newly-constructed home that has never been occupied. C) Seller Sally exchanged her Illinois home with a buyer from New Jersey. D) Seller Gary was selling his condominium unit.

B) Builder Frank sold a newly-constructed home that has never been occupied.

According to various sections of the Administrative Code, if Broker Bob is showing property that was the site of an act that had no effect on the physical condition of the property or its environment, Broker Bob _____________________. A) Is required to disclose the act. B) Is not required to disclose the act. C) Disclose whatever the seller advises. D) Should complete and deliver a Residential Real Property Disclosure Form to the buyer.

B) Is not required to disclose the act.

How long does a person have to initiate an action for a violation of the Property Disclosure Act? A) 6 months B) One year C) Two years D) Five years

B) One year

Which statement is FALSE? A) Seller Pete is not liable for any error, inaccuracy, or omission of any information delivered in the property condition report if he did not have actual knowledge of the problem. B) Seller Amanda is not liable for any error, inaccuracy, or omission of any information delivered in the property condition report if she thought the problem had already been corrected. C) The Property Disclosure Act obligates the seller to make a specific investigation or inquiry in an effort to complete the disclosure statement. D) Seller Greg will be liable for any undisclosed material defects of which he had actual knowledge.

C) The Property Disclosure Act obligates the seller to make a specific investigation or inquiry in an effort to complete the disclosure statement.

To which of these transfers of residential real property does the Property Disclosure Act apply? A) Transfers between spouses resulting from a judgment of dissolution of marriage or legal separation B) Transfers from a mortgagor to a mortgagee by deed in lieu of foreclosure or consent judgment C) Transfer by sale, exchange, installment land sale contract, or assignment of beneficial interest D) Transfers by a trustee in bankruptcy

C) Transfer by sale, exchange, installment land sale contract, or assignment of beneficial interest

Under the Illinois Property Disclosure Act, who is exempt from disclosure? A) Beneficiary of a trust B) Contract purchaser or lessee of a ground lease C) Owner D) Any person who has never occupied, nor managed, the property

D) Any person who has never occupied, nor managed, the property

What happens if a seller lists a defect on the disclosure report? A) The home must sell as is. B) The seller must repair it before the home transfers. C) The buyer is required to have an inspector verify the problem. D) The buyer could take that information into account when structuring an offer.

D) The buyer could take that information into account when structuring an offer.

Is fraud accidental or deliberate?

Deliberate

A copy of the actual ____________ _____ must be printed on or be included with the Residential Real Property Disclosure Report form.

Disclosure Act

When a seller lists a problem on disclosure form, is he/she obligated to repair the problem?

No. However, buyer may request either repair or a price break because of the problem.

Residential Real Property Disclosure Act

Requires that when a seller signs the standard listing agreement, he must prepare a disclosure statement.

Based on the Illinois Real Estate License Act the licensee must disclose any material facts about the physical condition of the property OR the transaction about which the licensee has ____________________ knowledge. appurtenant actual subjacent extra-territorial

actual

Agents need to remember, "stigmatized" conditions are not material and that they ________________________________.

are not required to be disclosed.

If, prior to ____________, the seller has actual knowledge of an error, inaccuracy, or omission in any prior disclosure document after delivery to a buyer, that seller must provide a _____________ __________________ ______________.

closing ; written supplemental disclosure

What disclosure was included on the disclosure form as of 2010?

disclosure of a meth lab

The _____________ must NEVER complete the disclosure forms. (licensee/managing broker)

licensee

Information about a property that has a significant bearing on a buyer's decision to purchase that property.

material fact

If the _______ fails or refuses to provide the disclosure document prior to the transference of the residential real property, the ________ has the right to terminate the contract.

seller ; buyer

Under certain circumstances, the __________ is not liable for any error, inaccuracy, or omission of any info delivered in the property condition report.

the seller is not liable