Real estate (CE SHOP)
Filomina is preparing to sell her home and thinks she should test for radon. Which of the following options about radon testing is true?
Filomina can hire a professional to perform the test, or she can buy a test kit and submit it to a lab for analysis.
In Maryland, listing agreements and their associated disclosure forms must be kept on file with the broker for a minimum of ______.
Five years
Fred is buying Gary's property, which is listed with broker Sara. Who are the parties to the listing agreement?
Gary and Sara
Which of the following conditions must a buyer meet before they can use alternate financing?
There must not be any added expense to the seller.
Lola and Rick's offer on a property is contingent upon financing. What happens if they cannot obtain financing?
They must let the seller know.
In the Inclusions/Exclusions section of the Disclosure of Inclusions/Exclusions, Leased Items, and Utilities Addendum, the parties can indicate additional items that the seller will leave, as well as ________________________.
Items the seller is removing that would otherwise stay.
Jasmine just received written notice from her buyers that they have been unable to obtain financing. What option does Jasmine have?
Jasmine can notify the buyer in writing that she is declaring the contract null and void.
In non-full-disclosure states, whose responsibility is it to notify sellers of their duty to disclose required items?
Licensee representing the seller
Informs the seller that they are granting the broker the right to use non-confidential information about the property
Release of Property Data
Prakesh and Jean have always wanted to renovate an old home. They found a Victorian that hasn't been lived in for years and are considering making an offer. Their agent warns them that the property as it stands now may not be insurable. Which of the following might make it uninsurable?
The 100-year-old wiring
Which section of the Residential Contract of Sale specifies the time frame a buyer has to submit a written application for financing?
The Financing Application and Commitment section
Alexandra is helping her clients, the Kents, fill out the Purchase Price section of the Residential Contract of Sale. What amount will they put in this space?
The Kents' purchase offer
Which section of the Residential Contract of Sale states that the seller must not negotiate a new lease or renew any existing lease that extends past the settlement or possession date without the buyer's written consent?
The Leases section
As Brandon's listing agent, Lily must disclose all known material facts relative to Brandon's property. Which of the following is a zoning-related fact that Lily might have to disclose to prospective buyers?
The property is right in the middle of a historic preservation district.
Which one of the following property features could contaminate the soil?
Underground storage tanks
Maryland Property Disclosure Law
establishes the requirements for the residential property condition disclosure and disclaimer statement - sellers of single family residential real properties that include four or fewer single-family units must provide buyers with either a written residential property condition disclosure statement or a written residential property disclaimer statement
How long are licensees and brokers required to keep copies of the real estate forms on file?
five years
Down Payment
money you bring to the table as part of your closing costs, and must be paid as a condition established by the loan terms to give the buyer some 'skin in the game'
In which type of listing agreement will a seller contract with multiple agents and only pay commission to the agent who locates a buyer?
open listing
purchase price
the amount the buyer is offering to pay for the property
Earnest money deposit
the amount the buyer will put up as consideration when making an offer. Earnest money can be paid in the form of a personal check and is subtracted from the offer price at settlement.
Caveat Emptor
the buyer is responsible for performing due diligence on the property; seller isn't responsible for disclosing everything or for protecting the buyer
Which of the following may be considered a stigmatized property?
A home where a homicide, suicide, or haunting occurred
Stigmatized Property
A property that has acquired an undesirable reputation due to an event that occurred on or near it, such as violent crime, gang-related activity, illness or personal tragedy. Some states restrict the disclosure of information about stigmatized properties.
Notice to seller about a brochure that explains issues regarding obtaining property insurance coverage
Insurability
Explains the role of an assigned agent in a dual agency situation
Intra- Company Agency
What is a major reason a buyer should sign a buyer representation agreement?
It assures the buyer of representation.
Which of the following properties requires a lead disclosure?
Duplex built in 1959 residential!
The seller is required to have an attorney review the agreement.
False
What is the minimum number of years that the listing agreement and signed disclosures must be kept on file with the broker?
Five years
What would you tell your clients that the disclosure statement is?
It is the seller's representation of the property's condition.
Ministerial Acts
It's okay for a broker to do things like let an appraiser into the house or perform other tasks for the buyer that doesn't require the brokers expert advice
Nancy, a broker in Annapolis, is going over the listing agreement with her new client, Josie, who asks, "What if I need to cancel the agreement early?" What should Nancy tell her?
"There's a provision right here that gives either of us permission to cancel the agreement early."
Homes/ properties built before _______ needs a federal lead disclosure and safety pamphlet completed.
1978
latent defect
A latent defect is a material fact that would not necessarily be found with a careful inspection and poses a potential health or safety hazard to occupants of the property.
In the MAR's Exclusive Right to Sell Residential Brokerage Agreement, what does the Lead-Based Paint section contain?
A notice that sellers of properties built before 1978 must provide lead hazard disclosures
Grants the broker the exclusive right to represent the buyer
Buyer Authorization
Which of the following statements is true about buyers and the Maryland Residential Property Disclosure and Disclaimer Statement?
Buyers can rescind a contract on the basis of having received an incomplete disclosure from the seller.
Which three of these are some of the most common pests you'll want to keep at bay?
Carpenter ants Powderpost beetle Termite
Notice to sellers who are foreign persons or non-resident aliens about IRS income tax requirements
FIRPTA (Foreign Investment in Real Property Tax Act)
Listing agreement is not legally binding T/F?
False
As soon as potential buyers contact Amelia, she sets them up to receive weekly emails with listings that fit what they're looking for. The thing is, they hardly ever get in touch with her after that. What's the best thing Amelia could do to improve her likelihood of sealing the deal?
Have an in-person buyer presentation meeting.
Hiram, a broker, is part owner of a real estate investment group that wants to unload some of its portfolio and the group wants Hiram to list the properties. What percentage of ownership interest would Hiram need to have in order to avoid having to disclose his licensed status?
Hiram has to disclose his personal interest no matter how much of an ownership interest he has
Historically, buyer representation has ______.
Increased
Which of the following is one of a listing agent's duties?
Maintain seller confidentiality.
According to the Inspection Contingency paragraph of the Residential Contract of Sale, the buyer has the opportunity to ________________________.
Make the purchase of the property contingent upon a home and/or environmental inspection
Regarding information that licensees must disclose, what does the pneumonic MAAP stand for?
Material, Adverse, Actual, Physical
what two attributes are behind mold
Moisture and lack of airflow
Registered Sex Offender nearby... disclose or dont?
No, not required but should advise client to look. According to Megan's Law, law enforcement agencies must register convicted sex offenders
self-dealing
Not disclosing a conflict of interest
Which section of the MAR's Exclusive Right to Sell Residential Brokerage Agreement requires the seller to disclose the condition of the property to the buyer?
Notice of Property Condition Disclosure/Disclaimer
In which section of the Residential Contract of Sale do buyers indicate the amount of earnest money they are putting down?
Payment Terms section
Which of the following statements about how a listing agreement can be terminated in Maryland is true?
Per Maryland law, all listing agreements must contain a provision for the early cancellation of the agreement by either the broker or the seller.
In what form can a buyer pay earnest money?
Personal check
In which section of the Residential Contract of Sale do buyers indicate the price they are offering for the property?
Purchase Price section
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
Bonnie always schedules an in-person meeting with prospective buyers before she begins sending them data on properties. Why might this be?
She needs to define the buyers' needs and wants.
MAAP
Shows the licensee what to disclose Material - considered material if it is important in deciding what course of action the buyer takes regarding the real estate transaction Adverse - information is negative, reduce property value (information that would cause a normal person to not go through with the sale) Actual - licensee must have actual info about the physical condition of the property. MUST disclose what you know Physical - know something wrong with foundation, window, or public easement crosses the property; must disclose it
Whose responsibility is it to ensure that a prospective buyer receives a copy of the Maryland Residential Property Disclosure and Disclaimer Statement prior to the buyer making a written offer to the seller?
The buyer's broker and the seller's broker
What is the sales contract?
The buyer's documented offer to the seller to purchase the home.
Which of the following is a legitimate and legal way that an exclusive right-to-sell listing agreement may terminate without the seller owing a commission?
The listing agent stops working on the listing.
sales contract diff names
The offer Earnest money agreement offer to purchase contract of purchase and sale purchase agreement
Your buyer clients have access to property tax information for each listing that you've given them. Why are they asking you about county tax assessment schedules?
The property taxes may change drastically after reassessment.
What's the purpose of a buyer presentation?
To build rapport with the buyer
What is the purpose of a listing agreement?
To spell out the agreement between the listing broker and the seller
Listing agreement can only be changed with the written consent of all parties T/F?
True
The listing agreement is binding upon the parties, their personal representatives, successors, heirs, and assigns.
True
listing agreement can only be changed with the written consent of all parties.
True
Notice to sellers that the contract of sale may require them to convey a property that is free and clear of all issues
Violation Notices
Consent for Dual Agency form:
You are required to present this form and obtain the seller's signed consent as part of completing the listing agreement and present it again for signed consent if a dual agency situation arises. The seller may also choose not to consent to dual agency.
Federal Lead-Based Paint Disclosure form:
You are required to provide this form to the seller and have your client complete it if the property was built before 1978. You must ensure that the completed form, along with a copy of the EPA pamphlet, Protect Your Family from Lead in Your Home, is provided to prospective buyers.
Maryland Residential Property Disclosure and Disclaimer Statement:
You are responsible for providing your client with the latest version of the form. The seller completes the form and a copy must be provided to a prospective buyer on or before the time that a purchase agreement is entered into.
Is the signed sales contract legally binding?
yes
Mitch, your seller client, asked you about the tax ramifications of selling his townhome. What's your best response?
"That's not my area of expertise. You should ask your tax advisor."
Seth is a licensee working for a buyer, Britney. Britney wants to make sure the seller accepts her offer on a charming Cape Cod, so she tells Seth she wants to make a full-price, non-contingent offer right away. How should Seth respond?
"I highly recommend a home inspection contingency with your offer to protect yourself in the event there are major defects with the house."
Owners should complete the disclosure section of the Maryland Residential Property Disclosure and Disclaimer Statement only if they choose to disclose defects or other information about the property's condition they ______.
Actually know
Identifies which attachments are part of the agreement
Addenda
When should a prospective buyer receive a copy of the Maryland Residential Property Disclosure and Disclaimer Statement?
Before or at the time the buyer makes a written offer to the seller
Which section of the Residential Contract of Sale explains how the earnest money deposit is handled from the time the buyer submits it through to settlement?
Deposit section
Specifies the scope of the broker's professional duties and obligations to the buyer
Disclaimer / Limitation
Monica is a listing agent who is in the process of gathering material facts about her client's property. She has had the seller complete the disclosure/disclaimer form, she has checked the public records to verify the seller's information, and she has reviewed the survey data. What else should Monica do?
Disclose any material facts she discovers when gathering listing information.
Seller is required to provide buyer with the MD Residential Property Disclosure rand Disclaimer Statement on or before the buyer enters into the contract of sale. What two things happen if the buyer does not receive the statement on or before the y sing they purchase offer?
- The buyer can rescind the contract of sale in writing at any time before receiving the disclosure - The buyer can rescind the contract of sale in writing within five days of receiving the disclosure
Babs is assured of a commission if the seller's listing sells. What does she likely have?
An exclusive right-to-sell listing agreement
In Maryland, how and when must you present the Consent for Dual Agency form to the seller?
As part of completing the listing agreement and again if a dual agency situation arises and you need the seller to reaffirm her consent
At what point must a listing agent disclose material facts to all parties involved in the transaction?
As soon as possible
Requires the seller to give permission to the broker to reveal to buyers if there are other offers on the table.
Authority to Disclose Offers
What type of listing agreement provides the sellers with the opportunity to enter into listing contracts with multiple agents and still reserve the right to sell the property themselves, owing no commission?
Open listing
Marilyn is reviewing the inspection report with her buyer clients. Which of the following issues in the report should Marilyn flag as most significant?
Presence of mold
Ron prides himself on providing his buyer clients with consistently stellar representation. His latest buyer client, Tammy, is purchasing a fixer-upper on Walnut Street, just a stone's throw from the railroad tracks. What's Ron's responsibility regarding making sure Tammy is informed about the property's condition?
Ron should make sure that Tammy understands her rights and obligations regarding the property disclosure/disclaimer statement
What is the purpose of a CLUE report?
Summarize all insurance claims filed relative to the property within the last 7 years
Marla's excited about closing on a cute lakefront cottage. But when she reads the report from the home inspection, she learns that the chimney leaks and that there is water damage in several places. This wasn't on any of the seller's disclosures. Which of these is the best option for Marla?
Terminate the agreement and ask for a refund of her earnest money.
All of the homes on Elm Street are currently on septic systems. However, the county plans to extend the sewer lines to Elm Street within the next two years. What's the biggest reason why it's important for your buyers to know this?
The county will likely impose an installation fee on Elm Street residents to cover the costs.
According to Maryland disclosure guidelines, upon which of the following events is it NOT appropriate to give the buyer the opportunity to review the seller's disclosure/disclaimer statement?
The day of the home inspection
Which of the following would NOT likely be a location issue of concern to buyers?
The house was built in 1985.
Bridget represents Colin, who's buying Hugh's house. Darcy represents Hugh. Hugh completed and signed the Residential Property Disclosure/Disclaimer Statement, and Colin reviewed and signed it. Hugh and Colin also signed the Section 10-702 notice form, and their agents made sure a copy of the form and the disclosure statement were included in the finalized contract. What's missing from this scenario?
The licensees also need to sign the notice form.
As a part of a buyer's due diligence, which location-related issues should be researched?
Whether the property is insurable, located in a wetland, or located in an historic area
Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker, without cause. Burt may legally do this as long as he's ______.
Willing to pay Scott's commission anyway
May listing agreements be terminated without penalty?
Yes, if both the listing broker and the seller's agree in writing
Earnest Money Deposit (EMD)
a down payment on the down payment. A copy of the check accompanies the offer to the sellers, and becomes part of the terms being considered in the offer/acceptance period. The EMD is a consideration because it means that you, the buyers, are putting that money at risk if you should default on the contract.
material fact
any fact that, if known to the buyer, would likely influence the buyer's decision to purchase the property, or to purchase it at a certain price, or with certain conditions in place