Principles of Real Estate ch.4 (Quiz 4)

The sellers have accepted an offer in which they agreed to carry a second trust deed. What contract should be provided to the seller to be sure all the required information is available to them to enter into this type of agreement?

1) Buyer’s credit report.

2) Seller Financing Addendum and Disclosure Statement.

3) Real Estate Transfer Disclosure Statement.

4) Common Interest Development Statement.

2) Seller Financing Addendum and Disclosure Statement.

Megan's Law is concerned with the:

1) issue of AIDS and/or death in the home

2) hazards of earthquakes and un-braced water heaters

3) location of registered sex offenders

4) possibility of mold and its required disclosure

3) location of registered sex offenders

Both Salesperson A and Salesperson B work for American Realty. Salesperson A takes a listing.   If Salesperson B finds a buyer, she would most likely be:

1) a dual agent

2) a single agent

3) representing the buyer only

4) representing the broker only

1) a dual agent

A material fact would most likely be defined as:

1) something that affects the value of the propert

2) an item of unimportance to the buyer

3) something of importance to the seller

4) an item that need not be disclosed

1) something that affects the value of the propert

The best place for the seller to disclose a leaky roof is:

1) the Sellers Financial Disclosure Form

2) the Natural Hazards Disclosure Form

3) the Transfer Disclosure Form

4) the Agents Visual Inspection Disclosure Form

3) the Transfer Disclosure Form

If the seller provides the Transfer Disclosure Statement to the Buyer following the acceptance of the offer; the buyer has how many days to cancel the agreement?

1) Nice

2) 17 days

3) Three-days

4) 21 days

3) Three-days

The most detailed area of the Transfer Disclosure Form that requires the most information from the seller is:

1) Paragraph IV

2) Paragraph III

3) Paragraph II

4) Paragraph I

3) Paragraph II

Information regarding unreinforced masonry would most likely be found in the:

1) Residential Environmental & Earthquake Hazard Disclosure

2) Natural Hazards Disclosure

3) Transfer Disclosure Statement

4) Agents Visual Inspection Disclosure

1) Residential Environmental & Earthquake Hazard Disclosure

Which cause of death would most likely need to be disclosed to a buyer?

1) Murder

2) Natural causes

3) Cancer

4) AIDS

1) Murder

Which would be an example of a stigmatized property?

1) The property is misidentified on a “Hollywood Map of the Stars”

2) All of these

3) A celebrity committed suicide on the property five years ago

4) The property was the site of a popular television series

2) All of these

A Lead Based Paint Disclosure must be given on all properties:

1) properties where in the agent suspects lead based paint

2) that do not contain lead based paint

3) built before 1978

4) which contain lead based paint

3) built before 1978

A primary concern of methamphetamine contamination is:

1) soil contamination

2) the house was occupied by drug users

3) the property may be stigmatized

4) the property may have odors

1) soil contamination (unsure)

Which is not covered by a Natural Hazard Disclosure Statement?

1) Flood area

2) Inundation zone

3) Mold contamination

4) Earthquake zone

3) Mold contamination

Formaldehyde is associated with real property for which reason?

1) Insulation

2) Mold remediation

3) Wood preservation

4) Insect repellent

1) Insulation (unsure)

Un-braced water heaters are prone to:

1) falling

2) explosions

3) leaking

4) faulty ignition

1) falling

An odorless, colorless gas caused by carbon/fossil based fuel is:

1) carbon dioxide

2) oxygen

3) hydrogen

4) carbon monoxide

4) carbon monoxide

An all-electric home without an attached garage would not be required to have a:

1) carbon monoxide detector

2) seismic meter

3) smoke alarm

4) braced water heater

1) carbon monoxide detector

All homes, no matter when they were constructed, must have a smoke alarm located

1) In the kitchen

2) Outside of the sleeping areas

3) On each floor

4) In each bedroom

2) Outside of the sleeping areas

In order to properly prepare a NHD report, the preparer must consult:

1) the State Geologist’s Office

2) the county recorder’s office

3) state maps

4) the Bureau of Real Estate

1) the State Geologist’s Office (unsure)

For purposes of real estate disclosure, an ordinance is considered to be:

1) a mandatory procedure

2) a governmental regulation

3) a military explosive

4) an obligation

3) a military explosive (unsure)

If a salesperson is unsure about if an item needs to be disclosed, the best policy is to:

1) ask the Bureau of Real Estate

2) call the local Association of REALTORS®

3) disclose it

4) consult with the seller

3) disclose it

Upon learning the seller’s spouse died of cancer last year, and agent concerned about the death may be viewed as a material fact by a buyer, should make which disclosure?

1) The seller’s spouse died but I do not know the cause

2) The seller’s spouse died of an illness

3) The seller’s spouse died of unknown reasons

4) The seller’s spouse died of cancer

2) The seller’s spouse died of an illness (unsure)

Lead based paint is most hazardous when:

1) consumed

2) all of the above

3) inhaled

4) ingested

2) all of the above

The purpose behind the requirement for sellers to disclose to the buyer that the property is --located in a condominium or planned development is to:

1) give the buyers an opportunity to meet their neighbors

2) provide copies of financial statements and governing documents

3) make sure the buyers are qualified to obtain a loan

4) allow for board approval of the buyers

2) provide copies of financial statements and governing documents

Megan’s Law requires:

1) buyers be informed of a website where convicted sexual predators in a neighborhood are identified

2) buyers be told of potential sexual predators in a neighborhood

3) all sexual predators will be known to the potential buyers

4) sexual predators are prohibited from living in a neighborhoodbuyers be told of potential sexual predators in a neighborhood

1) buyers be informed of a website where convicted sexual predators in a neighborhood are identified

The Seller Financing Addendum:

1) prohibits the buyer from paying excessive interest in violation of usury laws

2) discloses the financing terms on a seller carry back loan

3) discloses to the seller what type of loan the buyer is obtaining from a bank

4) allows the buyer additional time to qualify for a loan

3) discloses to the seller what type of loan the buyer is obtaining from a bank

An agent is not required to complete an Agents Visual Inspection on:

1) a 4-unit apartment property

2) a bank owned TDS exempt property

3) a non-seller occupied residence

4) vacant land

4) vacant land

An agent may disclose the results of her investigation on:

1) his company’s letterhead, typed and signed by the agent

2) the Transfer Disclosure Statement

3) the Agent’s Visual Inspection Disclosure Form

4) all of these

4) all of these

In a single family residence, agents must inspect

1) the attic of the property

2) the roof of the property

3) the entire property

4) all accessible areas

4) all accessible areas

When inspecting the property, the agent must be constantly looking for what is known as a:

1) notice item

2) point of interest

3) key feature

4) red flag

4) red flag