Nevada Real Estate Exam Prep Mandated Disclosures Flashcards

Nevada Real Estate Exam Prep (Mandated Disclosures) Flashcards

• A real estate salesperson working for a listing broker

must always disclose:a. all facts to the seller onlyb. all

material facts to the seller onlyc. all facts to both the seller and the buyerd. all material facts to both the seller and the buyer

• C The principal and the principal's agent have a duty

to disclose known facts, which are not known to the other parties to the transaction and are not easily observable that materially affect the value of the property.

• A colorless, odorless gas which is a hazard to health

and is found in homesthroughout the United States is:a.

asbestosb. radonc. urea formaldehyded. trichloroethylene

• B Radon is a radioactive, colorless, odorless gas,

which is produced when certain natural radioactive minerals break down or decay.

• A listing salesperson should do all of the following

EXCEPT:a. advise prospective buyers of the lowest price

the seller will acceptb. verify factual information about the property provided by the sellerc. advise the seller that known property defects must be revealed to prospective buyersd. review local zoning laws that affect the property

• A When the broker represents the owner of the

property objectives of the seller should not be disclosed.

• Prior to settlement, the broker discovers dry rot in the

floor joists. The broker should:a. inform the seller onlyb.

inform the seller and the buyerc. refund the purchaser's depositd. inform no one

• B All parties to the contract must be informed of any

material defect; even if it discovered after the contract has been formed.

• A seller's failure to properly and honestly complete the

Seller's Real Property disclosure Form allows a buyer all of

the following, EXCEPT:a. litigate and be entitled to treble

damagesb. entitled to court and legal feesc. have up to two years from the close of escrow to begin litigationd.immediate recovery from the Real Estate Recovery Fund

• D The buyer can only collect from the Recovery fund

after obtaining a judgment against the seller and then only if the damages were caused by the actions of the licensee.

• What form is used to provide the written disclosure by

the seller of a residentialproperty of any and all known material conditions and aspects of the property?a. Consent to Actb. Duties Owedc. Seller's Real Property Disclosure Formd. Agency Confirmation

• C The proper disclosure by the seller of material facts

is to be made in writing in a timely manner and in a format prescribed by the Real Estate Division; the Seller's Real Property Disclosure Form.

• During contract negotiations, a broker for the seller

assures the purchaser that the property is appropriate for multi-family use. Prior to closing, the purchaser learns that zoning regulations prohibit such use. By law, this contract

is:a. voidable by either partyb. voidable at the option of the

buyerc. valid and binding on all partiesd. assigned to the broker

• B The broker's statement about the zoning is a

misrepresentation, which makes the agreement a voidable contract at the option of the buyer.

• A broker for the seller is required to disclose to a

potential buyer that:a. the seller doesn't like the houseb.

the seller is moving out of statec. the seller is in poor healthd. a felony occurred on the property

• A The broker is required to inform the buyer about

defects related to the property, which include the fact that the seller no longer likes the property. Normally the fact that a felony took place on the property would need to be disclosed, but a Nevada statute has made the discovery of

that defect a responsibility of the buyer.

• The owner tells the broker that there is a sewer on the

property. A buyer purchases the property and discovers there is only a septic tank on the property. Who is liable?a.the sellerb. the brokerc. the appraiserd. there is no liability attaching to anyone

• B The broker could be held liable under the theory that

the broker is a professional and should investigate the accuracy of the seller's representation.

• A real estate salesperson advised a prospective buyer

that the property the buyer was considering was scheduled for annexation into the city limits. This disclosure

constituted which of the following:a. disloyalty to principalb.

misrepresentationc. required disclosure to buyerd.disclosure of confidential information

• C The annexation in to the city is a material fact that

could affect the consideration to be given and therefore must be disclosed.

• If a parcel of real estate is near a toxic waste site the

agent would be obligated to:a. conduct a phase one auditb.

do nothing, if he is not the buyer's agentc. disclose the factd. disclose only if it is a superfund site.

• C Environmental hazards are a material fact that must

be disclosed to all parties to the transaction.

• Sue listed her house with a broker and told the broker

that the house had termite infestation and some structural damage, but the repairs had just been completed. The

broker is obligated to:a. tell her not to tell other brokers

showing the propertyb. pay for all repairs himselfc. inform potential buyersd. cancel the listing agreement

• C Termite infestation and structural damage even if it

has been repaired should be disclosed.

100. A broker must NOT disclose to prospective buyer:a.

about structural defectsb. that zoning makes the present usage non-conformingc. that he has seen evidence of termitesd. that the owner will accept less than the listing price

• D When the broker represents the owner of the

property objectives of the seller should not be disclosed.

• If an inspection indicates that a building contains

asbestos, the results of the inspection must be disclosed to

the:a. seller onlyb. buyer onlyc. seller and any potential

buyerd. person requesting the inspection only

• C A building containing asbestos is a material fact and

must be disclosed to the seller and to any potential buyer.

• The Seller's Real Property Disclosure Form must be

completed by the seller at least:a. 10 days before escrow

closeb. 14 days before escrow closec. within 10 days of contract signingd. within 14 days of contract signing

• A The Seller's Real Property Disclosure Form must be

completed by the seller at least 10 days before the escrow close.

• Which of the following may a broker disclose to a

prospective purchaser without permission?a. why the seller must sell nowb. why the property is not desirablec. what the owner actually will acceptd. what the owner originally paid

• B Why the property is not desirable means to disclose

any material fact that would adversely affect the consideration to be given by the prospective purchaser, which must be disclosed by the agent. The other items are considered confidential information and can only be disclosed with the permission of the seller.