Real Estate Express Chapter 6 ❤️

A property disclosure statement must be delivered to the buyer... A) At time of property showing. B) Prior to accepting a purchase offer C) With a counteroffer D) At closing

B) Prior to accepting a purchase offer

How would a seller inform a buyer that the property has an underground storage tank? A) The seller must show the tank to the buyer at property showing. B) The seller must include the information on the property condition disclosure. C) The seller can wait to see if a property inspection discovers the tank. D) The seller should not inform the buyer about the tank.

B) The seller must include the information on the property condition disclosure.

Net listings are viewed... A) as professional and are legal in New York. B) as unprofessional and they are illegal in New York. C) as professional and legal in most states. D) as acceptable in most cities and legal in New York City.

B) as unprofessional and they are illegal in New York.

An agent must present a copy of the agency disclosure to a potential buyer and get it signed... A) at the time of closing. B) before they sign a buyer's agency agreement. C) after an offer is approved. D) two days before a closing.

B) before they sign a buyer's agency agreement.

A property condition disclosure must include... A) Any incidents of suicide on the property. B) A home inspection report. C) Anything the seller knows about the condition of the property D) A property appraisal report.

C) Anything the seller knows about the condition of the property

When must a buyer's agent provide the agency disclosure to a seller? A) Prior to the seller signing a listing agreement B) Prior to the buyer submitting an offer to purchase C) At the time of first substantive contact D) A buyer's agent does not provide the disclosure to a seller.

C) At the time of first substantive contact

Which disclosure must New York City landlords use to let prospective tenants know if an apartment has suffered a bed bug infestation within the past year? A) Insect Disclosure B) Bed Bug Mitigation Order C) Bed Bug Disclosure D) Tenant Safety Disclosure

C) Bed Bug Disclosure

How long must an agent retain a copy of an agency disclosure? A) Until the transaction is closed B) Until the agency relationship is terminated C) For 3 years D) For 5 years

C) For 3 years

When a buyer begins to discuss his or her needs with a broker, it is called... A) The listing phase. B) Exercising fiduciary duties of care and skill. C) The first substantive contact. D) Creation of the agency relationship.

C) The first substantive contact.

If a potential buyer attends an open house and wants to talk with the hosting agent about making an offer... A) the agent is not allowed to make an agency disclosure. B) the customer must do so after the scheduled open house hours. C) the agent must make an agency disclosure. D) the customer must sign a single agency contract.

C) the agent must make an agency disclosure.

When must the agency disclosure form be presented, explained, and signed? A) Prior to any substantive contact B) When a client makes an offer C) When a seller receives an offer D) During the first substantive contact

D) During the first substantive contact

Which of the following types of listing agreements can a real estate licensee NOT enter into? A) MLS B) Exclusive C) Single D) Net

D) Net

Which statement is true about the Property Condition Disclosure? A) It must be filled out by the seller's agent B) It is required by law C) It must be filled out by an attorney D) The seller has the option to fill it out or not

D) The seller has the option to fill it out or not

What do you do if a buyer, seller, landlord, or tenant refuses to sign an agency disclosure form?

- find out why - tell the consumer the disclosure form is designed to protect them - explain it is not a binding contract, just a consumer rights notice If they still refuse: - note the names, time, date, and reason of refusal - show the property still - complete affidavit and attach original disclosure and have it notarized immediately, giving a copy to your broker and keeping a copy yourself

exclusive right to sell listing agreement

The broker has the exclusive right (only them) to market the property for a specified period of time

What must an owner do if they don't want the cooperating broker present when the listing broker presents an offer?

The owner must give the listing broker a letter stating that they don't want cooperating brokers present then the listing broker can give a copy of that letter to the cooperating brokers

In an exclusive right to rent agreement, under what conditions will the broker receive a commission?

The owner will pay the broker a commission at either the execution of the lease or at time of occupancy

exclusive agency listing agreement

This agreement gives a broker the right to market and sell a property for a specified time period, while the owner can still find a buyer and sell the property without owing the broker a commission. The seller must pay a commission only if the home is sold by the broker or affiliates of the broker.

Property Condition Disclosure

homeowner is required to fill out a statement regarding everything that is wrong with the home

Listing agreements should _______________ to be enforceable.

be in writing

How long must an agent keep the signed copy of the agency disclosure form?

3 years

Multiple Listing Service (MLS)

A listing service where local members of the Board of REALTORS agree to share listings and commissions on properties sold

open listing agreement

A non-exclusive contract that gives the seller or buyer the right to engage with any number of brokers as agents at the same time, but only the broker who is the procuring cause gets commission

What instrument is used to document when a customer refuses to sign an agency disclosure form? A) Declaration Pursuant to Section 443 (3) F of the Real Estate Property Law B) Declaration Pursuant to Public Disclosure Law C) Declaration of Brokerage Disclosure D) Declaration of Disclosure Failure

A) Declaration Pursuant to Section 443 (3) F of the Real Estate Property Law

What must an agent do if a buyer or seller refuses to sign the required NY disclosure form? A) Fill out an affidavit and attach the original NYS disclosure form and have it notarized B) Refuse to enter into a listing agreement with the seller or a buyer's agency with the buyer. C) Tell the buyer or seller that the form must be signed before the agent can legally show a property. D) Refuse to negotiate for the seller or the buyer.

A) Fill out an affidavit and attach the original NYS disclosure form and have it notarized

Questions regarding which of the following would NOT be included in the Environmental section of a Property Condition Disclosure? A) If there has ever been a fire in the home B) If the property is in an agricultural district C) If the property is in a designated wetland D) If lead plumbing is present

A) If there has ever been a fire in the home

Who is paid commission with an exclusive right to rent agreement? A) The listing broker B) The property owner C) The property manager D) Whoever rents the property

A) The listing broker

An agent must present a copy of the agency disclosure to a potential buyer and get it signed... A) before they sign a buyer's agency agreement. B) after they sign a buyer's agency agreement. C) after an offer is made. D) three days before a closing.

A) before they sign a buyer's agency agreement.

If the seller fails to provide a property disclosure before a binding contract is signed... A) the buyer will receive a $500 credit from the seller at closing. B) the buyer will receive a $800 credit from the seller at closing. C) the seller forfeits any earnest monies. D) the brokerage is fined $500.

A) the buyer will receive a $500 credit from the seller at closing.

What is another name for the exclusive right to represent agreement?

Buyer's agency or buyer's broker agreement

Stigmatized Property Disclosure

By law, agents are not required to disclose: - if anyone living (or lived) in the house had AIDS or any other illness not transmitted through dwellings - if anyone died on the property - if a crime had been committed on the property HOWEVER, if it's a buyer's condition to buying the house the seller's agent must disclose the information but ONLY with the seller's consent.

First Substantive Contact

Happens the first time when all parties come together and share details/information about a property

In an exclusive right to sell agreement, under what conditions will the seller still owe the broker a commission after the agreement expires?

If the owner sells the property to someone that the broker showed the property to during the listing agreement

How does a net listing create a conflict of interest for a broker?

It violates the broker's fiduciary responsibility of putting the client's interests above their own

Where do licensees typically get their listing forms they use in their office?

Most of these forms are provided by the local real estate board REBNY, NYSAR, Westchester Association of Realtors, NAR, and MLS

Bed Bug Disclosure

NYC landlords/their agents must let prospective tenants know in writing if any apartment in the building has suffered a bed bug manifestation within the past year

Agency Disclosure Form Paragraphs

Paragraph 1 - tells the consumer that brokers are required to disclose whom they work for in the transaction Paragraph 2 - defines/describes seller's agent Paragraph 3 - defines/describes buyer's agent Paragraph 4 - defines/describes broker's agent Paragraph 5 - defines/describes dual agent Paragraph 6 - defines/describes dual agency with designated sales agents

What does the Seller's Statement paragraph of the Property Condition Disclosure form stipulate?

That anything contained in the statement is based on the seller's actual knowledge at the time of signing

What does the Rental of Property paragraph of a listing agreement do?

This paragraph gives the broker the exclusive right to rent the property and receive commission for doing so, if the owner is okay with it

What is the major difference between an exclusive right to sell listing and an exclusive agency listing?

With exclusive right to sell, the broker has the exclusive right to market the property and receive a commission regardless of who procures the buyer. With an exclusive agency, the owner can find a buyer on their own and owe the broker nothing.

Electrical Service Disclosure

agent must disclose if a property has no utility electrical service to the buyer

Uncapped Well Disclosure

agent must disclose if property has a known uncapped natural gas well to the buyer

Utility Surcharge Disclosure

agent must disclose if property has an electric or gas utility surcharge to the buyer

Agricultural Districts Disclosure

agent must disclose if property is partially or wholly located within a state-mandated agricultural district *specific wording the disclosure must have is in chapter info*

Lead-Based Paint Disclosure

agents must give potential buyers a lead-based paint disclosure if home was built before 1978 and agents must also give prospective buyers a booklet called, "Protect Your Family from Lead in Your Home"

bilateral employment contracts

owner pays broker to locate a "ready, willing and able" buyer or tenant

net listing agreement

when an owner sets a minimum amount that he wants to receive from the sale of the property and lets the broker keep Amy amount above the set minimum as commission