REAL ESTATE PRACTICES - CHAPTER 3 Mandatory Disclosures
There are statutory rescission rights for a number of transactions. Which of the following provides for rescission rights?
(a) A loan for consumer credit that is secured by a borrower's residence. (b) Selling his or her equity interest in a residence in foreclosure. (c) Purchase of a time-share.
An agent's inspection under Easton vs. Strassburger (as codified by state statutes) applies to:
(a) visual inspections. (b) accessible areas only. (c) 1-4 residential units.
Which of the following statements regarding agency disclosure is TRUE?
The listing agent cannot elect to be only a buyer's agent.
Which seller(s) must provide a Real Estate Transfer Disclosure Statement?
The seller of a 4-unit APARTMENT building.
Mello-Roos is:
a special tax assessed to homeowners in a community as repayment for bonds used to fund the infrastructure within their community
Under Easton, an agent's duty of inspection and disclosure covers:
a visual inspection only.
Creative financing and the complaints stemming from these questionable types of financing helped enact the existing:
seller financing disclosure requirements
The licensee who brings the buyer into the transaction is called the:
selling agent.
Compliance with environmental hazards disclosure requires:
the buyer sign that they have received a booklet entitled Environmental Hazards: A Guide for Homeowners and Buyers.
Facts that must be disclosed when SELLER financing is involved:
-That the loan has or will have negative amortization, or that deferred interest ARMs could have negative amortization. -That the note, if not fully amortized, will have to be refinanced at maturity and that this might be difficult or impossible to accomplish in the marketplace. -The buyer's creditworthiness (credit report, job verification, etc.).
The following are listed on the California Real Estate Law Disclosure Chart prepared by the California Association of Realtors®?
-Window security bars. - Notice of borrower's right to copy of appraisal report. - Military ordnance disclosure.
A right of rescission is provided by law for purchase agreements involving all EXCEPT:
1-4-unit residential properties.
A special study zone is an area that is in danger of which type of calamity?
Earthquakes
A selling agent must comply with agency disclosures to the buyer:
before the buyer executes an offer.
The earthquake safety disclosure statement:
both applies to 1-4 residential units and must be signed by buyer and seller.
In addition to disclosing known material facts concerning the property, the listing agent also has a duty to disclose defects that can be discovered by:
conducting a reasonably diligent visual inspection.
The order of the three steps of the disclosure process are
disclose, elect, confirm
The Real Estate Settlement Procedures Act (RESPA) applies to
federally related first mortgages for the purchase of 1-4 residential units.
A fiduciary relationship applies to a real estate licensee and to:
his or her principal.
Brownfields
is a term used to describe contaminated soil
The Real Estate Transfer Disclosure Statement (TDS) provides information regarding the:
physical condition of the property.
A fact about a property is considered a "material fact" if:
prior knowledge of the fact would have prevented the other party from entering into the contract.
STIGMATIZED property is:
property that may be perceived to be undesirable for other than physical or environmental reasons. Besides murder or suicide, a house could be stigmatized by the fact that molestations occurred in the home, or haunted.
The purpose of the Subdivided Lands Law is to:
protect purchasers from fraud.
The agent does not disclose a Mello-Roos tax. After close of escrow the buyer may:
rescind the contract within three days of receipt of the notice.