Ch. 14, 15, 16, 17

Question 1

Fiduciary duty

Answer 1

That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over there principal by the slightest misrepresentation,Concealment, duress or undue influence.

Question 2

General duty

Answer 2

The duty a licensee owes to non-client individuals to act honestly and in good faith with upfront disclosures of known conditions which adversely affect a properties value

Question 3

TDS transfer disclosure statement

Answer 3

A mandatory disclosure prepared by a seller and give into perspective buyers setting forth any property defects known or suspected to exist by the seller, generically called a condition of property disclosure.

Question 4

Title conditions

Answer 4

Encumbrances such as liens, conditions, covenants And restrictions and easements which affect title to property.

Question 5

When asked by the prospective buyer or buyers agent about any aspect, feature or condition which relates to the property or the transaction in someway, the seller’s agent is duty-bound to…

Answer 5

Respond fully and fairly to the inquiry

Question 6

When is the TDS delivered to the buyer?

Answer 6

Before the seller except the purchase agreement offers submitted by a buyer.

Question 7

If the TDS is delivered to the buyer after the seller enters into a purchase agreement, the delivery is ultimately in violation of TBS rules, and the buyer may…

Answer 7

1) Cancel the purchase agreement on discovery of undisclosed defects known to the seller or the seller’s agent and unknown and an absurd by the buyer or the buyers agent prior to acceptance
2) Make a demand on the seller to correct the defects or reduce the price accordingly before escrow closes
3) Close escrow and make a demand on the seller for the cost to cure the defects

Question 8

Home inspector

Answer 8

A professional employed by a home inspection company to inspect and advise on the physical condition of property improvements in a home inspection report for reliance by the seller the seller’s agent and the buyer as a warranty on the condition of improvements

Question 9

Home inspection

Answer 9

And non-invasive examination of the mechanical, electrical and plumbing systems of a dwelling, as well as the components of the structure, such as the roof, ceiling, walls, floors and foundations.

Question 10

What is the transfer disclosure statement TDS more Generically called?

Answer 10

A condition of property disclosure statement

Question 11

What is a condition of property disclosure statement also known as?

Answer 11

A transfer disclosure statement TDS

Question 12

How many days does the buyer have to elect to cancel the purchase agreement if the TDS is belatedly delivered to the buyer?

Answer 12

Statutory three days

Question 13

Environmental hazards

Answer 13

Noxious or annoying man – made conditions which are injurious to health or interfere with the individual sensitivities

Question 14

What conditions are classified as environmental hazards?

Answer 14

1) Injurious to the health of humans

2) And interference with an individual sensitivities

Question 15

Environmental hazards located on the property which pose a direct health threat on occupants due to construction materials, design of the construction, the soil or is the location, include…

Answer 15

• Asbestos containing building materials,
• Formaldehyde
• Radon gas, hazardous waste for materials, products or sentences which are toxic corrosive, ignitable, or reactive
• toxic mold,
• smoke from the combustion of materials, products, supplies or substance is located on or with in the building,
• security bars which might interfere with an occupant ability to exit a room in order to avoid another hazard, such as a fire,
• and lead

Question 16

Environmental hazards located off the Property, but which have an adverse affect on the use of the property due to noise, vibrations, orders or some other of billet he to inflict harm, include…

Answer 16

• Military ordinance sites within 1 mile of the property,
• industrial zoning in the neighborhood of the property,
• airport influence areas establish my local airport land commissions,
• and ground transportation arteries which include train tracks and major highways in close proximity to the property

Question 17

Environmental hazards have an adverse effect on properties value and desirability of us they are considered…

Answer 17

Defects

Question 18

If the facts are known and disclose, They are considered…

Answer 18

Material facts

The environmental hazards might affect the perspective buyers decision to purchase the property (adverse affect)

Question 19

Carcinogen

Answer 19

A substance which causes cancer in human beings

Asbestos Is a known carcinogen

Question 20

Formaldehyde

Answer 20

Colorless, pungent gas contained in most organic solvents which are used in paint, plastics, resins, Press – wood fiber board materials, you FFI urea – formaldehyde foam installation, curtains and upholstery textiles.

Question 21

Radon gas

Answer 21

And naturally – occurring radioactive gas. It is not visible, cannot be tested and has not ordered. It is located in soil’s with a concentration of uranium in the rock for example granite or shale, beneath it

This is known as a human carcinogen and enters the building from the soil beneath the structure

Question 22

Hazardous waste

Answer 22

Any products, materials or substances which are toxic, corrosive, ignitable or reactive.

Question 23

Natural hazards

Answer 23

Come with the location of a parcel of real estate, not with the man-made aspects of the property.

Risks to life and property which exist in nature due to a property’s location

Question 24

Types of natural hazards…

Answer 24

• Special flood hazard areas, a federal designation,
• potential flooding and inundation areas,
• very high fire hazard Severity zones,
• wildland fire areas,
• earthquake fault zones,
• seismic hazard zone

Question 25

Natural hazard disclosure and HD statement

Answer 25

A report provided by a local agency or NHD vendor and used by sellers and sellers agents to disclose natural hazard which exist on a property held out for sale.

Question 26

What type of sales are excluded from the NHD?

Answer 26

• Court order transfers or sales
• Deed in Lieu of foreclosures,
• trustees sales,
• lender resales after foreclosure or a deed in Lieu,
• Estates on death,
• transfers between co-owners,
• transfers to relatives spouses,
• transfers to or by governmental entities

Question 27

True or false:

Disclosure of a natural hazard is mandated on all types of property.

Answer 27

True

Question 28

Termination

Answer 28

The cancellation of a transaction before escrow has closed or a lease has ended.

Question 29

Restoration

Answer 29

The return of funds and documents on a rescission of a purchase agreement or transaction sufficient to place all the parties in the position they held before entering into the agreement or closing the transaction.

Question 30

How is natural hazard information obtained?

Answer 30

The seller and the seller‘s agent I required to exercise ordinary care in gathering the information. They may gather the information themselves or the seller may employ an NHD expert together the information.

Question 31

When relying on in an HD report prepared by others, the seller’s agent need only to…

Answer 31

REQUEST and NHD report from a reliable expert in natural hazards, Such as an engineer or a geologist who has studied the public records,

REVIEW the NHD form prepared by the expert and enter any actual knowledge the seller or sellers agent may possess,

SIGN the NHD statement provided by the NHD expert and DELIVER it with the NHD report to perspective buyers or buyers agents.

Question 32

True or false:

The use of an expert to gather information from the public record and prepare the report relieves the seller’s agent of any liability for errors not known to the agent to exist.

Answer 32

True

Question 33

True or false:

If the agent knew her up to have known of a natural hazards noted in the readily available planning department’s personal list, the agent is exposed to liability?

Answer 33

True

Question 34

When a natural hazard has been failed to be disclosed by seller’s agent, the buyer on and in escrow disclosure after entering into a purchase agreement and an alternative to a money claim, has a statutory remedy allowing them to terminate the purchase agreement and avoid the transactions by exercising…

Answer 34

• A three day right of cancellation when the NHD statement was handed to the buyer,
• a five day right of cancellation when the NHD statement was mailed to the buyer

Question 35

Who is responsible for handing the buyer the NHD statement? And what is this process called?

Answer 35

It is the buyers agents duty. And it is called delivery.

Question 36

True or false:

A sellers an HD statement is a warranty or guarantee by the seller or sellers agent of the natural hazards affecting the property.

Answer 36

False.

It is NOT a warranty or guarantee.

Question 37

What type of disclosure is used for environmental hazards and physical deficiencies in the soil or property improvements?

Answer 37

The TDS, transfer disclosure statement.

Question 38

True or false:

the NHD statement disclose his wrist to life and property which exist in nature due to the properties location, wrists known and readily available from the public records

Answer 38

True. In nature

Question 39

If a property is in an area where the financial responsibility for preventing or suppressing fires it’s primarily on the state, the real estate is located within a…

Answer 39

State fire responsibility area

Question 40

True or false:

if a property is located within a wildland area exposed to substantial force virus, the seller or the seller’s agent is to disclose this fact.

Answer 40

True

Question 41

Alquist-Priolo Maps

Answer 41

Maps which identify earthquake fault areas available from the state my knee and geology board in the city or county planning department.

Question 42

What are seismic hazard zone?

Answer 42

Areas which are exposed to earthquake hazard such as

• strong ground shaking,
• ground failure, such as liquefaction or landslides,
• tsunami’s,
• damn failures