3 Mandatory Disclosures Flashcards
Designated agent
In some states one agent in an office can be the seller’s agent and another agent in the same office can be the buyer’s agent.
Material fact
A fact that would be likely to affect the judgement of a person to whom it is known, such as information concerning the poor physical condition of a building that is for sale.
Mello-Roos bonds
Improvement bonds that place offsite improvement costs on the home purchaser rather than on the developer.
Red flag
A physical indication of a possible problem with a property.
Rescission
The cancellation of a contract and restoration of the parties to the same position they held before the contract was formed.
Sick building syndrome
- Illness attributed to a sealed structure
- believed related to ventilation
Toxic mold
- Usually a greenish black mold that causes respiratory problems
- it usually grows on material with a high cellulose content
Truth in lending act
Federal act acquiring loan term disclosures, as well as advertising disclosures.
Caveat emptor
“Let the buyer beware”
Full disclosure will
- protect the principals (buyers and sellers)
- establish and build trust and confidence between the licensee and principals
- satisfy the law
Mandated disclosure
Is an item of information required by law to be conveyed from one entity involved in a real estate transaction to another entity in the same transaction.
Agent’s fiduciary responsibility
- Loyalty
- obedience
- Confidentiality
- Disclosure
- Accounting
Associate licensee
A person who is licensed as a real estate salesperson or broker who is either licensed under a broker or has entered into a written contract with a broker to act as the broker’s agent and to function under broker’s supervision
Disclosure process (DEC)
- Disclose = This step will be in writing, agent must educate principal about the 3 different types of agents and how they operate. After the disclosure they must obtain principal’s signature.
- Elect = Principal and the agent decide which type of agency will be used.
- Confirm = Must be in writing and signed in the confirmation statement of the type of agency is gonna be used, purchase contract is included (Deposit receipt)
Easton vs. Strassburger
- May 31, 1984 The California Supreme Court refused to hear this case
- requires all real estate agents conduct a competent and diligent visual inspection of all accessible property areas in a real estate sale involving 1-4 unit residential properties and must disclose all material facts.
Real estate agents are only required to visually inspect ??
1-4 residential units
How many years does it have to be to not have to disclose a death in the house?
-3 years
Stigmatized property
-a property that murder or suicide or haunting has occurred
Purpose of the California subdivided lands law
To protect purchasers in new subdivisions from fraud
Public report
Discloses information on the project such as location, size of the offering, identity of the subdivided, the interest to be conveyed, and provisions for handling deposits, purchase money, taxes, and assessments.
Loan estimate form
Showing estimated closing loan costs within three days of receiving the application and not less than seven days prior to consummation, as well as a booklet called YOUR HOME TOOLKIT within 3 days of application.
Megan’s law
Provides for registration of sex offenders and public availability of knowledge regarding the location of these offenders.
Mello-Roos bonds
Municipal-type bonds issued to fund streets, sewers, and so forth for a new development.
Septic system disclosure
Disclosure is required when property is not presently connected to a sewer.
