Topic 6: Disclosure in Real Estate CA portion Flashcards

Topic 6: Disclosure in Real Estate (CA portion) Flashcards

Carbon monoxide detectors (CO detectors) must be installed in all dwelling units that contain a fossil fuel burning heater, appliance, or fireplace; or that have an attached garage- July 1, 2011 for a single-family homes and January 1, 2013 in multi-family residences. What document does a seller use to disclose whether the property has carbon monoxide devices installed?- Carbon Monoxide Disclosure Statement- Real Estate Transfer Disclosure Statement- Natural Hazard Disclosure Statement- Poisonous Gasses Disclosure Statement Sellers notify buyers on the Real Estate Transfer Disclosure Statement whether the property has carbon monoxide devices installed.(b)

The R-value is a rating that measures:- How well insulation

resists heat- The efficiency of energy; used to determine the effectiveness of appliances- The amount of heat needed to raise one pound of water one degree Fahrenheit- Insulation The R-value is a rating that measures how well insulation resists heat.(a) Broker Fisher took a listing on a property where a person died from AIDS. Does Fisher have to disclose this information?- Yes, Fisher must disclose all material facts- No, Fisher does not have to voluntarily disclose this information- Yes, but only if the death was within the previous three years- No, the law does not allow this disclosure to be made.Neither the seller not his or her agent has to ever voluntarily disclose, whether a person was afflicted with or died from AIDS. However, if the buyer asks a direct question about a death on the property, the seller or agent must answer their question honestly.(b) Seller Sam listed his newer ranch-style home built in 2002 with broker Bob. Regarding the lead based paint

disclosure, Sam must:- Give the buyer the pamphlet,

Protect Your Family Lead in Your Home.- Complete statements verifying completion of the disclosure requirements- Must give the buyers a 10-day opportunity to test for lead.- Do none of the above The home was built in 2002, so there is no disclosure requirement. This disclosure pertain to residential housing built before 1978.(d) The Coopers closed escrow on a single-family home in February. After the close of escrow, they discovered they

were responsible for:- An increase in property taxes were

responsible for; supplemental tax bill.- No increase in taxes, but a supplemental tax bill for the following year- The former owner's back taxes- Paying two year's taxes in advance Upon the sale of real property, the property taxes will be assessed at 1% to 1.5% of the new purchase price. If the escrow closes between the time the seller has paid the taxes and new taxes are assessed the buyer also will receive a supplementary tax bill for the increase.(a) When a condominium is sold, the seller must, upon

request, provide to the buyer:- CC&Rs- Bylaws- Financial

statements- All of the above The owner must furnish the controlling documents, e.g.CC&Rs, bylaws, and the most recent financial statements.(d) Broker Marshall took a listing on a home. When filing out the NHDS, which of the following would Marshall not

include?- Flood hazard- Seismic hazard- Mold hazard- Fire hazard Choices (a), (b), and (d) are included on the Natural Hazard Disclosure Statement (NHDS); mold is discussed

on the Transfer Disclosure Statement (TDS).(c) A Real Estate Transfer Disclosure Statement is required in the _____ of one-to-four residential units.- Sale- Lease- Foreclosure- All of the above The Transfer Disclosure Statement is required on a sale of 1-4 residential units. Choice (b) is not correct, because it must be a lease with an option of purchase.(a) The law requires a seller to reveal any information that would be important to the buyer regarding the condition of the property in what document?- Mello Roos Statement- Statement of Compliance- Transfer Disclosure Statement- Pest Control Inspection Statement The Transfer Disclosure Statement form requires sellers to disclose known property defects, which are not limited to the physical aspects of the property but also include items such as zoning violations and nuisances in the area.(c) All of the following actions would be in violation of real estate law, except;- A real estate broker sharing a commission with an unlicensed buyer if the broker discloses this to all parties- A licensed salesperson sharing a commission with another licensed salesperson- A licensed salesperson accepting and consent of both principals- A broker sharing a commission with a licensed salesperson employed by another broker Answer (a) is the only one that is not in violation of the real estate law. Only brokers share commission, not salesperson. Only the broker accepts commission from one or more principals, not the salesperson.(a) All homes with a fossil fuel burning fireplace or an attached

garage must:- Install carbon monoxide detectors- Have

braced water heaters- Install operable smoke detectors- Have water heater insulation blankets Carbon monoxide detectors (C) detectors) must be installed in all dwelling units that contain a fossil fuel burning heater, appliance, or fireplace; or that have an attached garage.(a) What must be disclosed to purchasers under the Alquist- Priolo Special Studies Act?- Location of toxic waste sites- Water quality reports- Location of flood hazard zones- Location of earthquake fault lines The Alquist-Priolo Special Studies Act requires the State Geologist to delineate various earthquake fault zones. An earthquake fault zone is an area delineated by state officials to have an active fault within it and have the potential for surface rupture.(d) During negotiations for the purchase of a house, seller Butler never informed buyer Wright that the house was served by a septic tank with a failed drainfield. Escrow closed, Wright moved in, and shortly thereafter discovered the problem with the septic tank. What recourse does Wright have?- Revoke the offer- Rescind the contract with Butler based on fraud- Rescind the contract with the broker- Sue the title company This is a material fact that should have been disclosed on page 1 of the TDS. If the offer had not been accepted, Wright could revoke his offer. Once escrow closed, Wright could rescind the sales contract based on fraud.(b) SPecial flood zones areas on the flood hazard boundary

maps indicate that flooding occurs:- Every 50 years- Within

100 years- Within 100 and 500-years- Over 500 years Special flood zone areas are areas within a 100-year flood boundary as indicated on flood hazard boundary maps.(b) Regarding environmental hazards on the property, the

seller is required to:- Give a copy of the Environmental

Hazards booklet to the buyer.- Disclose any known environmental hazards to the buyer- Complete and give Transfer Disclosure Statement to the buyer.- Do all of the above The seller or seller's agent should give a copy of the Environmental Hazard booklet to the buyer. Additionally, the seller must disclose any known environmental hazards on the TDS and give it to the buyer.(d)

A private seller advertises a single-family home for sale "as is". Since the seller is not using the services of a real estate

broker, the seller:- Has met the legal requirement of caveat

emptor by putting the term "as is" in the newspaper advertisement.- Is not obliged to disclose any defects in the property because the property is being sold "as is"- Must give a Real Estate Transfer Disclosure Statement to prospective buyers- Is not obliged to give a Real Estate Transfer Disclosure Statement to prospective buyers.The seller of a 1-4 unit residential property must complete and give a Transfer Disclosure Statement to a prospective buyer. A seller can sell a home "as is" but must still disclose any defects.(c)