unit 14- disclosures
Salesperson Cook places a newspaper ad on a piece of property that she owns. The ad reads, "3 bedroom, 2 bath, rambler; below market; good location; call 555-3421." This ad is in violation of the Real Estate Board Regulations because: The ad fails to include the property address The ad fails to disclose that the owner is a licensee The ad makes false or misleading statements The ad does not include the price
The ad fails to disclose that the owner is a licensee Cook must disclose that she is licensed in all ads (even a "For Sale" sign in her front yard). The personal interest disclosure is now required whether or not the licensee uses a broker to sell the property.
A developer has prepared an advertisement, offering several lots for sale. One lot is $10,000 and all others are in the $15,000 - $20,000 price range. Prior to actually running the ad, the developer receives an offer for the $10,000 lot which he intends to accept. Which of the following statements is true regarding the advertisement? The developer may publish the ad as planned but it cannot run for than 4 weeks The developer cannot publish the ad as planned The developer may publish the ad as planned The developer may publish the ad as planned until 50% of the lots are sold
The developer may publish the ad as planned The question did not say the offer had been accepted, only that he intended to accept it. As such, this is not a "bait and switch" and the ad may run as planned. Using "bait and switch" tactics is to advertise or offer real property for sale or rent with the intent not to sell or rent at the price or terms advertised.
Jack the Broker sends an email to Mike. The email describes the real estate services Jack provides and encourages Mike to call for more details. Jack makes the required disclosures in the middle of his email, in bold lettering. Jack's email: Complies with the regulations so long as it is at least 12 point bold font Complies with the regulations Is not regulated by the board Does not comply with the regulations
Complies with the regulations According to the regulations, email advertising must include the requisite disclosures on the main page or no more than one click away. Jack's email is in compliance.
A parcel of real estate that you are trying to sell is located near a toxic waste site. The seller (your client) does not want you to disclose this information because he thinks that no one would buy if they knew. As a real estate agent, you have an obligation to: Say nothing as per your fiduciary relationship with the seller (your client) Disclosure the information only when you are involved in an transaction Note it on the disclosure form by doing this you do not need to disclose the fact verbally Disclose the information regardless of whether you are involved in the transaction
Disclose the information regardless of whether you are involved in the transaction Disclosure laws apply regardless of whether a real estate agent is involved in the transaction. Although using disclosure forms adds a layer of protection for all parties in the transaction, the forms themselves do not replace an agent's independent responsibility to disclose all known material property defects. Environmental hazards are material facts and must be disclosed to all parties in the transaction.
Prior to settlement the listing broker discovers that a house has a history of plumping issues. When the broker checks on the house he notices the ceiling is beginning to leak. The broker should Inform the seller only Fix i himself and tell no one Inform the buyer only Inform the buyer and seller
Inform the buyer and seller The broker must to disclose facts about the physical condition of the property to all parties.
A broker advertises property listed with her firm in a newspaper. What must be included in this property advertisement Location of property Name of the brokers firm Name of the listing salesperson Price that is shown in the listing agreemen
Name of the brokers firm All ads must include the name of the brokerage firm, as it is known to the public. Listing the salesperson's name is fine, but the firm's licensed name MUST also be listed
The virginia property disclosure act applies to all of the following transactions except New home construction Property options Property sales Installment sales
New home construction The VA Property Disclosure Act does not apply to new home construction (a first sale), but it does apply to the other items specified
Which act regulated disclosures in residential (1-4 units) property sales, options, installment sales, and lease in an option to buy? Virginia fair housing act Residential property disclosure act Landlord tenant act None of the above disclosures are the responsibility of the seller and are not regulated
Residential property disclosure act
Which of the following names must appear in any advertisement for real estate Selling salesperson Listing broker Listing salesperson Seller
listing broker The name of the seller and the name of the listing salesperson MAY appear in the ad, but the listing broker's name MUST appear in all forms of advertisement (conventional and electronic media).
Which of the following is not a required disclosure under the virginia residential property disclosure act? Registered sex offenders in the area Building ode violations Defective drywall Noise zone
Registered sex offenders in the area
Ben and Jerry are communicating via instant messages. Ben is a licensee and Jerry is interested in locating property in Ben's area. Ben suggests that he may be able to help. Which of the following disclosures is Ben most likely required to make? Ben must disclose his email address Ben must disclose his username Disclosures Ben must disclose his firm name, city and state
Ben must disclose his firm name, city and state Ben must disclose his firm name, city, and state since Board regulations now cover instant messages. These disclosures must be viewable on the main page or no more than one click away from the main page.
When must mandated disclosures be made: During the open house In the listing Prior to buyer accepting offer Before closing
Prior to buyer accepting offer
"Defective drywall" is drywall designated by the US Consumer Product Safety Commission to be a substantial product hazard, OR drywall that contains elemental sulfur exceeding 10 parts per million. If a property has defective drywall what must be provided to a potential buyer? An agreement to have the defective drywall replaced prior to closing A written disclosure regarding the defective drywall An allowance for the buyer to repair the defective drywall after closing None of the above
A written disclosure regarding the defective drywall Under Virginia Law, sellers with actual knowledge that the property contains defective drywall must provide a written disclosure of that fact to the prospective purchaser
Which of the following statements is true about real estate advertising It must be supervised by the principal or supervising broker It must be in the name of the firm The firm licensed name must be clearly and legibly displayed All of the above
All of the above All of the listed items are true regarding any form of real estate advertising
If used to advertise property which type of communication could trigger disclosure requirements by a licensee Email Instant messaging Chat All of the above
All of the above All of the listed means of communication could trigger disclosure requirements if used by a licensee. In Virginia, licensee disclosures apply to all forms of advertisement (including electronic media).
Towns in the chesapeake bay area are required to take which actions to protect the public interest and protect the bay and surrounding public waters of this area Incorporate water quality protection measures Establish programs to protect the bay area Provide financial and technical assistance to protect the bay area All of the above
All of the above The counties, cities, and towns of Tidewater Virginia incorporate general water quality protection measures into their comprehensive plans, zoning ordinances, and subdivision ordinances; The counties, cities, and towns of Tidewater Virginia establish programs, in accordance with criteria established by the Commonwealth, that define and protect Chesapeake Bay Preservation Areas The Commonwealth must provide financial and technical assistance, policy guidance, and oversight when requested to carry out and enforce the provisions of this article All agencies of the Commonwealth exercise their delegated authority in a manner consistent with water quality protection provisions of local comprehensive plans, zoning ordinances, and subdivision ordinances
What is wrong with this advertisement: " 3 bed, 2 ba, $75,000. Ann agent broker xyz phone #" The agents name appears before the brokers name Nothing No location specified It does not disclose the agents license status
nothing There is nothing wrong with the ad as it is presented (assuming is is placed in conventional media). However, if this was an electronic advertisement, it would also have to include the firm's city and state.
A real estate salespersons license may be revoked if the licensee Sells insurance from the real estate office where she is employed Gives a reduced commission rate to a family member Advertises a listing at lower than listed price Charges more than the legal maximum commission rate
Advertises a listing at lower than listed price A licensee can only advertise property at the price that was agreed upon by the seller of the property. Doing otherwise might be classified as misrepresentation, and a failure of the licensee's fiduciary duties towards her client. Also note that there is no such thing as a maximum commission rate.
Kim has a listing agreement with Agent Garcia. Agent Garcia and Kim draft the listing on Thursday and, in accordance with Kim's wishes, they plan to publicly advertise the listing on Monday after Kim returns from an out of town trip. Agent Garcia knows the weekend is the best for selling Real Estate and decides to add Kim's listing to the MLS on Saturday morning. Is Agent Garcia ok to do so? Agent garcia has violated license law Agent garcia showed great business acumen Agent garcia is the professional and therefore is ok to list at the best time B and c
Agent garcia has violated license law Regardless of whether ads are in conventional or electronic media, licensees cannot advertise property without the owner's or landlord's (written) consent. Agent Garcia is in violation of License Law due to advertising Kim's listing without her consent.
The virginia property disclosure/disclaimer acts apply to all of the following situations except All property sales All property options All installment sales All leases
All leases Virginia Residential Property Disclosure Act imposes property disclosure obligations on sellers and licensees (to inform sellers of these regulations), which are in addition to the agency duty to disclose material facts. The Act applies to residential (1-4 units) property sales, options, installment sales, and leases with an option to buy, regardless of whether an agent is involved. The act does not apply to regular leases without an option to buy
Which of the following advertisements may contain a link to a required disclosure A firm web page An email from a broker to a prospective client A posting on an internet bulletin board by a broker regarding real estate services All of the above
All of the above All electronic media advertising that can be viewed or experienced as a separate unit (i.e., email messages and web pages) must contain disclosure that shall be viewable on the main page or is no more than one click away from the main page
Jill wants to sell her home and enters into a sales contract with jack. Jack will be moving in with his wife and three small children. Jills broker must disclose of each of the following items to jack except Condition of appliances Condition of electrical systems Condition of structural elements An occupant was HIV positive
An occupant was HIV positive A person's HIV/AIDS status is exempt from disclosure. Revealing that information could violate Fair Housing Laws or the Federal Privacy Act. All other choices include material facts which must be disclosed.
Jill is selling her property to Carl. After they agreed upon a sale price they both signed the sales contract. Carl is reviewing the disclosure form which shows the septic system is in the process of being repaired; there is a waiver attached to the property due to the failed septic system. What options does Carl have regarding the purchase of Jill's property? Carl can ask to back out of the sales contract but he risks a breach and loss of his deposit Carl is obligated by the sales contract to buy jills property Carl is allowed to back out of the contract and get his full deposit refunded Carl will have to take the matter to court
Carl is allowed to back out of the contract and get his full deposit refunded The purchaser may void the contract and have his deposit returned if the property is subject to such waiver.
The owner of residential real property who has actual knowledge that the dwelling unit is a repetitive risk loss structure must disclose this fact to the purchaser what is the owner disclosing If the owner filed claims and was paid by the national flood insurance program on multiple (2+) occasions Any amount of time If the owner has had to file claims against the home warranty on multiple (2+) occasions If severe wether has caused property damage/loss on multiple (2+) occasions
If the owner filed claims and was paid by the national flood insurance program on multiple (2+) occasions The owner of residential real property who has actual knowledge that the dwelling unit is a repetitive risk loss structure must disclose this fact to the purchaser. "Repetitive risk loss" means that two or more claims of more than $1,000 were paid by the National Flood Insurance Program within any rolling 10-year period, since 1978. This disclosure shall be provided to the purchaser on a form provided by the Real Estate Board on its website.
Which of the following statements is true regarding the MLS It can only accept residential listings It can establish minimum and maximum commission rates It can refuse to accept open listings All of the above
It can refuse to accept open listings The MLS is only an advertising tool of the real estate industry. As such, the License Law and regulations do not address their activities. Multiple Listing Services do take commercial listings, but note that most refuse to accept open listings since their terms provide little protection for the listing broker's interests. If the MLS were to establish commission rates, it would be in violation of federal Anti-Trust Law
The principal broker of a real estate franchise must make certain disclosures when advertising. In which of the following forms of advertising are thes disclosures not required In radio and television advertisements On for sale signs placed on specific property In newspaper ads consisting of more than 28 lines of copy None of the above
None of the above There are disclosure requirements for each of these advertising methods. In Virginia, advertising includes all forms of representation, promotion, and solicitation related to licensed real estate activity (for any purpose, in any medium). Therefore, "none of the above" is the best answer choice
Mark's home was the site of a widely publicized and grizzly murder. Unable to bear living in such a place, Mark puts his home on the market. However, Mark neglects to disclose the murders in a subsequent sale. In relation to the murder, Mark has most likely: Violated virginia's property disclosure law unless he is represented by a broker Compiled with virginia's property disclosure law provided the home has been properly cleaned Violated virginia's property disclosure law Not done anything wrong
Not done anything wrong In Virginia, there is no requirement to disclose (or disclaim) whether the property was the site of a homicide, felony, or suicide. These are stigmatizing events, which do not affect the physical nature of the property.
Which of the following conditions is most likely to be a latent defect? The paint is peeling on the exterior of the house The driveway concrete is cracked The carpeting is worn in the bedrooms The house's flood boards are rotting
The house's flood boards are rotting Latent defects are defects that are not readily apparent. Cracked concrete, worn carpeting, and peeling paint are readily apparent defects. Usually, they are not considered as latent because they are not hidden
The residential property disclosure form informs buyers that the seller makes no representations or warranties about all of the following except Whether the property is in a flood or radon zone Whether the property has been the location of a death such as murder or suicide Whether the pipes/plumbing are lead free Whether the property contains defective drywall
Whether the property has been the location of a death such as murder or suicide The owner makes no representations with respect to the condition of the property or its improvements and/or whether the property has defective drywall, is part of a community interest community, whether all the pipe/plumbing is lead free, is subject to easements, is in a flood or radon zone, is within a dam break zone, has registered sex offenders in the area, is in a resource protection area, matters pertaining to adjacent properties. A "stigmatized property" is one that has been deemed haunted or has had an event such as murder or suicide occur on the property in the past, these are not required disclosures.
Ben and Barry enter into a valid sales contract, which specifies that the trash compactor will be in working order. Ben signs a disclaimer/waiver about the property, which states that he is selling "as is" and gives no opinion on the condition of specified systems. When Barry takes possession of the house, the trash compactor is not operational. Does Barry have a cause of action against Ben? No because ben sold the home as is No because barry took possession Yes because bens disclosure was defective Yes because ben is in breach
Yes because ben is in breach Ben's disclosure was permissible--one can disclaim knowledge of the condition of specified systems and sell "as is." However, the disclaimer must not contradict the sales contract. In this case, it appears that Ben is in breach because he promised to deliver the premises with a working trash compactor, but failed to do so. Therefore, Ben's disclaimer contradicts the sales contract, and Barry has a cause of action against Ben.
Bill hired Larry to sell his home. Bill prefers to communicate with Larry via email. One night Larry replies to one of Bill's emails but includes none of the required disclosures. Has larry violated the rules? No because bill is larry's client No because disclosure was provided in prior communication Yes because the rules require specific disclosures in emails Yes so long as larry is a broker
Yes because the rules require specific disclosures in emails Under Virginia Law, "advertising" includes all forms of representation, promotion, and solicitation related to licensed real estate activity. Emails sent in order to advertise real estate services must contain specified disclosures. These disclosures shall be viewable on the main page (i.e., within the email itself) or no more than one click away. In this situation, the safest option is for Larry to add the required disclosures into his email signature.
Sellers are required to provide buyers with a residential property disclosure statement is there a required format? Yes the disclosure statement provided must be the one found on the vreb website No the seller can choose the format of the disclosure statement No but typically the sellers agent will draft the disclosure statement Yes the disclosure statement must follow the VA residential property disclosure act guidelines
Yes the disclosure statement provided must be the one found on the vreb website The owner of the residential real property shall furnish to a purchaser a residential property disclosure statement for the buyer to beware of certain matters that may affect the buyer's decision to purchase such real property. Such statement shall be provided by the Real Estate Board on its website. The disclosure form provided by the board informs the buyer that the seller makes no representations or warranties with regard to adjacent properties, covenants/restrictions, historic districts, registered sex offenders, resource protection area, flood zone or hazard areas, easements etc.