Real Estate Practice, Edition 9, Chapter 3 Quiz Flashcards

Real Estate Practice, Edition 9, Chapter 3 Quiz Flashcards A fiduciary relationship applies to a real estate licensee and to his or her principal. (Relationship of Trust.) The proper order of the steps taken in agency disclosure isdisclose, elect, confirm. (Disclose as soon as possible, confirm with offer.) The earthquake safety disclosure statement both applies to 1 to 4 residential units and must be signed by buyer and seller. (Residential Earthquake Hazards Report.) An agent need not disclose to a buyer that: both a former owner had AIDS or there was a death by murder or suicide on the property more than 3 years ago.(But the law is unclear as to the need to disclose for deaths within three years.) A selling agent must comply with agency disclosures to the buyer before the buyer executes an offer. (It is included in offer form) Compliance with environmental hazards disclosure requires the buyer sign that they have received a booklet titled

Environmental Hazards: A Guide for Homeowners, Buyers,

Landlords, and Tenants. (Explains possible hazards.) An agent's inspection under Easton v. Strassburger (as codified by state statutes) applies to all of these. accessible areas only, visual inspections and 1 to 4 residential units. (With reasonable expertise of a licensee.) Real estate disclosure laws applyprimarily for 1 to 4 residential units. (Such as a Transfer Disclosure Statement.) The Seller Financing Disclosure Statement provided to both buyer and seller provides All of these. A warning as to balloon payments, disclosure of deferred interest and credit terms. (Plus credit information, cash out sellers, warnings, etc.) A Transfer Disclosure Statement must be provided to the buyer when the sale involves a 3-unit residential building. (1 to 4 residential.)