CANVAS QUIZ: Chapter 15

Question 1

In California, the State Franchise Tax Board requires what percentage of the gross sales price be withheld by the buyers (if sold to foreign persons for under $100,000)?

Answer 1

3.3%

Question 2

Which of the following that affect the value or desirability of the property must be disclosed by the seller (transferor) or real estate agent involved in the transaction?

Answer 2

Any material facts

Question 3

What percentage of the gross sales price must buyers withhold from sellers (who are foreign persons) according to Federal Withholding (FIRPTA) guidelines for the IRS for properties under $300,000?

Answer 3

10%

Question 4

Although not a mandatory disclosure, which advisory reminds buyers and sellers of the importance of investigating a property for sale and lists seven different sections (14 pages) of property aspects to review, such as soil conditions, geologic hazards, environmental hazards, mold, water intrusion, fire hazards, building permits, and HOA rules?

Answer 4

Statewide Buyer and Seller Advisory (SBSA)

Question 5

The seller/lessor provides the buyer/lessee with a required lead-based hazard information pamphlet called Protect Your Family from Lead in Your Home for property built prior to what year?

Answer 5

1978

Question 6

“Diligent visual inspection” requirements, along with the seller’s mandatory disclosure of specified items and any known adverse material conditions, is included in which disclosure form?

Answer 6

Transfer Disclosure Statement (TDS)

Question 7

The seller and the buyer each receive which of following before signing the listing contract signing or the purchase agreement contract?

Answer 7

Agency Disclosure Form (AD)

Question 8

Which of the following may be exempt from the Lead-Based Paint disclosure requirements?

a. housing for elderly or handicapped
b. loft or efficiency unit
c. short-term rental
d. all of the above.

Answer 8

d. all of the above.

Question 9

Who prepares and delivers the Transfer Disclosure Statement (TDS)?

Answer 9

The seller

Question 10

Which disclosure form is provided to sellers first?

Answer 10

Disclosure Information Advisory (DIA)

Question 11

A buyer must be notified by a seller if a death has occurred on the property within how many years?

Answer 11

3 years

Question 12

Which of the following sales of real property is NOT legally exempt from completing the TDS?

Answer 12

1-4 unit residential sales

Question 13

Which of the following is NOT covered in the Natural Hazards Disclosure Act?

a. special flood hazard area
b. low-income area
c. dam inundation
d. very high fire area

Answer 13

b. low income area

Question 14

What does the term “Statutory” mean?

a. passed into law by the legislature
b. signed by the governor
c. becomes part of The 29 California Codes
d. all of the above.

Answer 14

d. all of the above.

Question 15

What is the difference between Advisories and Disclosures?

Answer 15

Disclosures are mandated by law

Question 16

In the Disclosure Information Advisory, under Final Recommendation Section, if any disclosure becomes inadequate, incomplete, inaccurate or changes over time right up until the close of escrow, you should:

Answer 16

Update and correct disclosure forms in a timely manner

Question 17

If a tenant does not receive a copy of the Meth Lab Clean-Up Order for any affected rental property prior to move in, the tenant may:

Answer 17

Void the rental agreement

Question 18

A real estate licensee must conduct a reasonably confident and diligent visual inspection of the property. This inspection duty includes:

a. off-site areas
b. public records
c. easily accessible areas
d. permits concerning the title or use of the property

Answer 18

c. easily accessible areas.

Trick question. As stated,

“This inspection duty does NOT include areas which are reasonably and normally inaccessible, off-site, public records, or permits concerning the title or use of the property.”

Question 19

The Statewide Buyer and Seller Advisory (SBSA) includes which of the following topics?

a. Buyer’s Rights and Duties
b. Broker’s Rights and Duties
c. Local Disclosures and Advisories
d. All of the above

Answer 19

d. All of the above

Question 20

A statutorily-defined notice regarding the existence of public access to database information regarding “sex offenders” must be included in every lease or rental agreement and every sales contract. This is known as the:

Answer 20

Megan’s Law Disclosure