Section 15 Unit 1 Flashcards

Section 15 Unit 1 Flashcards When may a home warranty be purchased?a. Only at the time the property is listedb. Right after closingc. When something breaksd. When the property is listed or at the time of closing

• When the property is listed or at the time of closing

In non-full-disclosure states, whose responsibility is it to notify sellers of their duty to disclose required items?a.Buyerb. Licensee representing the buyerc. Licensee representing the sellerd. Transactional broker

• Licensee representing the seller

What does the MAAP method help licensees determine?a.What their gross commission will beb. When to report another licensee for an ethics violationc. Whether a fair housing violation has occurredd. Which property facts they need to disclose

• Which property facts they need to disclose

In a caveat emptor state, who or what entity has the burden to prove that a seller was dishonest about a property's condition?a. The buyerb. The courtc. The listing agentd.The seller

• The buyer

Darren and Natalie are first-time buyers who have decided to purchase a newly built townhouse. Their agent, Jenner, tells them that the builder must provide a one-year home warranty. Which of the following conditions is most likely true?a. Darren and Natalie are getting a USDA rural development loan.b. Darren and Natalie are using an FHA-insured loan.c. Darren and Natalie are using conventional financing.d. Darren and Natalie made an all-cash offer.

• Darren and Natalie are using an FHA-insured loan.

Donald and Martina decided to purchase a newly built home, and their agent, Ed, recommended that they get a professional home inspection done. The couple tells Ed that they thought inspections were only for older homes.How should Ed respond to that?a. Ed needs to inform his clients that home inspections are most important for newer properties.b. Ed should let them know that lenders for new construction loans require inspections.c. Ed should remind them that every dwelling, no matter the age or size, should have a home inspection.d. Ed should tell him that he doesn't trust the builder.

• Ed should remind them that every dwelling, no matter the

age or size, should have a home inspection.Shane's buyers learned during the inspection that there was water damage around the fireplace and that the chimney needed new flashing and to be repointed. To whom must Shane disclose that information?a. Any party to

the transactionb. Only the listing agentc. Only the sellersd.Only the sellers and the lender

• Any party to the transaction

Your buyer clients Sylvie and Daryl reviewed their inspection report and decided that they would address small repairs themselves, but they want the seller to have

regrading done to direct water away from the house. What is your responsibility at this point?a. You must identify three potential contractors from whom the sellers can select.b.You need to communicate to the listing agent that the buyers are requesting regrading.c. You need to send the report to the sellers and ask them what they'd be willing to fix.d. You should help the buyers gather tools and materials for the small repairs.

• You need to communicate to the listing agent that the

buyers are requesting regrading.

Seth is a licensee working for a buyer, Britney. Britney wants to make sure the seller accepts her offer on a charming Cape Cod, so she tells Seth she wants to make a full-price, non-contingent offer right away. How should Seth respond?a. "I highly recommend a home inspection contingency with your offer to protect yourself in the event there are major defects with the house."b. "Since you love this house, this is the best way to make sure you get it.Let's write up the offer and send it over right now."c. "Your offer may be more attractive if we come in at $5,000 over the list price."d. "Your offer would be more attractive if it were all cash."

• "I highly recommend a home inspection contingency with

your offer to protect yourself in the event there are major defects with the house." Your buyer clients are excited because the property they made an offer on provides a home warranty. What should you tell them?a. Check the coverage at the time of purchase.b. Check the coverage if an appliance breaks.c. It protects brokers too.d. They're getting a great deal.

• Check the coverage at the time of purchase.

Lamar closes on his new home next week. It's a 37-year-old split level, so his agent asked if he's interested in purchasing a home warranty. "Why would I need a warranty?" he wondered. "Didn't the home inspection identify all of the issues?" What's the agent's best response to Lamar's question?a. A home warranty will cover all problems that come up in the future.b. A home warranty will cover things like appliances and major systems.c. Buying a home warranty almost guarantees you won't have any issues!d. If you purchase a home warranty and something breaks, you can sue the seller.

• A home warranty will cover things like appliances and

major systems.In full seller disclosure states, whose responsibility is it to complete the seller disclosure form which will be reviewed by prospective buyers?a. Home inspectorb. Licensee representing the buyerc. Licensee representing the sellerd.Seller

• Seller

Seth is a licensee representing seller Dora. Which of these items is Seth required to disclose to prospective buyers about the property?a. Dora doesn't use the back door because the steps leading to the yard are rotted.b. Dora keeps sunflowers planted in the back yard because the local birds can eat the seeds.c. The neighborhood kids like to ride their bikes in Dora's driveway.d. The pink geraniums in the window boxes are fake.

• Dora doesn't use the back door because the steps

leading to the yard are rotted.Home inspector Murray is explaining to first-time buyers what he looks for during a home inspection. What is his primary goal?a. Document health and safety issues that may affect both the cost and enjoyment of the home.b.