example, if the licensees area of expertise is agricultural

Material Facts related to property condition Flashcards t/f - For most residential sales transactions, licensees should be able to identify if there are signs of flooding on a property. Is there noticeable erosion on the land? Are there signs of water pooling in the yard?t T/F - How much licensees are expected to inquire about land and soil conditions can often depend on the type of transaction and the licensee's area of practice. For example, if the licensee's area of expertise is agricultural land sales, then they should reasonably be expected to know if the property is in an area in which the water table is too deep for a reliable water supply in a dry season T What are some of the most common examples of material facts related to property coindition?

• land & soil conditions2. accuracy of representation of lot

or improvement size, encroachments, or easements affects use3. structural issues4. condition of major systems, equipment, and appliances that are fixtures5. known alterations or additions6. environmental hazards Seller Danny knows that there is asbestos insulation within the walls of his old house. However, he also thinks that he could probably get away with concealing that little fact from any potential buyers. Can Danny get away with not disclosing this information?No - this MUST be disclosed. Asbestos cannot be detected by ordinary inspection, and that makes it a latent defect - which means that Danny is obligation to disclose it, or potentially face legal liability What are some examples of major systems? electrical, plumbing, hvac systems T/F - a latent defect does not need to be disclosed by the seller and listing agent F - these are defects that cannot be detected by ordinary inspection. These defects MUST be disclosed by the seller & listing agent What should a licensee do if they have cause to wonder about possible latent defects?Because licensees have a "should have known" disclosure standard to live up to, they should be sure to discuss any concerns with their clients Licensees will also be expected to conduct visual inspections of structural components such as...-roofs-gutters-downspouts-doors-windows-foundation Why does the seller & listing agent not need to disclose patent defects?The rational behind this standard of practice is that a buyer (and buyers agent) should reasonably be able to see visual evidence of a patent defect.Which of the following would be an example of a latent defect?a. a clasped roofb. hazardous materials contained behind the wallc. a flooded yardd. a sink that does not drain properly b defects that are easily discoverable upon inspectionpatent defects Buyer James and his agent are viewing a property in which he is interested. He's only seen exterior photos from the internet, so he's excited to get a look at the interior! Once

James and his agent arrive, however, they see a giant hole in the wall. Did the seller & listing agent have a duty to disclose this hole in the wall?Since the giant hole in the wall is an example of a patent defect - that is, defects that are easily discoverable upon inspection - then, technically speaking, the seller and

seller's agent have no obligation to disclose this defect.Why? Because James should be able to see the giant hole in the wall. If James is unable to see the giant hole in the wall, then his agent should certainly also be able to see the giant hole in the wall.T/F - the homeowner has a duty to disclose any known environmental hazards on their property T What is a material fact?this is defined as a fact that, if known, could cause someone to take a different course of action or make a different decision regarding the property to be purchased- a material fact is any fact that is significant or essential to the real estate transaction T/F - Licensees are obligated to disclose patent defects, but not latent defects.F - Licensees are obligated to disclose latent defects, which cannot be detected by ordinary inspection, but are not required to disclose patent defects, which ARE easily discoverable upon inspection.A garage that was altered into a guest house or a second story addition would be considered....alterations or additions to the home. These items are especially important if the alterations or additions were constructed without the appropriate permits. The buyer could end up inheriting a problem with the local zoning authorities any structural defects that cannot be detected by ordinary inspection latent defects T/F - patent defects do not have to be disclosed by the seller & listing agent T Known history of an infestation is an example of a...material fact. If a buyer purchased this property and later discovered carpenter ant damage or a new infestation, they probably wouldn't be too pleased. Knowledge of the history of infestation could have easily caused the buyer to make a different decision regarding the property.