Chapter 15: Real Property Disclosures and Advisories

Question 1

This is required for all real property with any standard water heater with a capacity of not more than 120 gallons for which a pre-engineered strapping kit is readily available.

Answer 1

Water heater bracing statement of compliance

Question 2

In the event that toxic contamination by an illegal controlled substance has occurred on a property and upon receipt of a clean-up order from the Dept. of Toxic Substance Control (DTSC) or a Local Health Officer, the transferor must provide a copy of this order to the transferee.

Answer 2

Meth lab clean-up order

Question 3

The requirement that buyers must withhold 10% of the gross sales price and send it to the IRS. If the seller is not a “foreign person”, he or she may complete the affidavit of non-foreign status.

Answer 3

Federal withholding tax (FIRPTA)

Question 4

This is required if the transfer of residential real property of 1-4 units is located in one or more of the following hazard zones: Special Flood Hazard Area, Area of Potential Flooding, Very High Fire Severity Zone, Earthquake Fault Zone, Seismic Hazard Zone, or State Responsibility Area.

Answer 4

Natural Hazard Disclosure Statement

Question 5

A requirement that agents who act for buyers, sellers, or both the seller and buyer must disclose where they’re working for in the transaction.

Answer 5

Agency Disclosure (AD)

Question 6

Describes the most common weaknesses that can cause damage to homes in the event of an earthquake.

Answer 6

Homeowner’s Guide to Earthquake Safety.

Question 7

The seller’s agent or the seller without an agent must disclose to the buyer the fact that the property is an a seismic hazard zone if maps are available at the County assessor, county recorder, or County planning commission office, or if the seller or sellers agent has actual knowledge that the property is in the.

Answer 7

Seismic hazard zones

Question 8

The requirement that every lease or rental agreement and every sales contract is required to include a statutorily-defined notice regarding the existence of public access the database information regarding sex offenders.

Answer 8

Megan’s Law disclosure

Question 9

Although there are no current disclosure Carmen’s, the transfer disclosure statement (TDS) has been modified to include the word which refers to a soft green, gray, or black growth that develops an old food on objects that have been left too long and warm, slightly wet places.

Answer 9

Mold

Question 10

This disclosure was created by the Carbon Monoxide Poisoning Prevention Act of 2010.

Answer 10

Carbon monoxide detector disclosure

Question 11

This notice informs the buyer that information about the general location of these pipelines is available to the public online via then National Pipeline Mapping System (NPMS).

Answer 11

Gas a hazardous liquid transmission pipeline notice

Question 12

The seller or transfer must disclose and running to the prospective transferee at the lot requires a non-compliant plumbing fixtures must be replaced with water conserving plumbing fixtures and by what date, and also whether the real property includes any non-compliant plumbing fixtures.

Answer 12

Water Conversing fixtures disclosure

Question 13

The requirement that buyers must withhold 3.3% of the gross sales price on any of California real property interests, unless an exemption applies, and send it to the FTB.

Answer 13

California withholding tax

Question 14

This disclosure is required when the transfer/lessor has actual knowledge that former military training grounds which may contain explosives is within 1 mile of the property.

Answer 14

Military ordinance location

Question 15

As required by state, a real estate licensee must conduct a reasonably competent and diligent visual inspection of the property and the seller fills out forms.

Answer 15

Broker’s statutory duty to inspect property

Question 16

The requirement that the owner/subdivider must record either a tentative and final map, or a parcel map (depending on the type of subdivision). Escrow on the transfer cannot close until the appropriate map has been recorded.

Answer 16

Transfer Disclosure Statement (TDS)

Question 17

The requirement that the transfer must notify the transferee in writing on a document “evidencing the transfer of ownership of the property” about the requirement to obtain and maintain flood insurance in accordance with applicable federal law.

Answer 17

Flood disaster insurance requirements

Question 18

The transferor/agent has no liability for not disclosing this fact if it occurred more than 3 years prior to the date the transferee offers to buy, lease, or rent the property.

Answer 18

Death

Question 19

Federal law requires this pamphlet be provided to the buyer before renting or buying a pre-1978 home or apartment.

Answer 19

Lead-Based Paint Pamphlet

Question 20

These devices must be hard wired in new real property construction and local requirements may be more restrictive.

Answer 20

Smoke alarms

Question 21

A seller (transferor) or real estate agent involved in the transaction must disclose any of these known facts that “affect the value or desirability” of the property.

Answer 21

Material facts

Question 22

Also called a termite inspection, this visual inspection is conducted by a state-licensed professional hard to look for signs of infestation or damage to a structure by wood destroying pests.

Answer 22

Pest control inspection report

Question 23

The requirement that the transfer must make a good-faith effort to obtain a disclosure notice concerning the special tax assessment bond from each local agency that Leavy is a special tax or assessment and delivers a notice(s) to the perspective transferee.

Answer 23

Mello-Roos, 195 Bond Act assessments

Question 24

The property disclosure statement required by law in most residential sales transactions in California.

Answer 24

Transfer Disclosure Statement (TDS)

Question 25

The requirement that the owner, subdivider, or agent, prior to the execution of the purchase contract or lease, must give the buyer/lessee a copy of the final public report (FPR - white), preliminary public report (PPR - pink_, or the conditional public report (CPR) issued by the DRE.

Answer 25

Subdivided Lands Law

Question 26

This non-mandatory advisory reminds buyers and sellers of the importance of investigating property for sale. It lists many property aspects to consider.

Answer 26

Statewide Buyer and Seller Advisory (SBSA)

Question 27

The obligation to prepare and deliver the transfer disclosure statement (TDS) is imposed on:

Answer 27

The seller

Question 28

What must the seller receive prior to signing the listing contract and the buyer receive prior to signing the purchase agreement contract?

Answer 28

Agency Disclosure (AD) form

Question 29

According to Federal Withholding (FIRPTA) guidelines for the IRS, buyers must withhold what percentage of the gross sales price?

Answer 29

10%

Question 30

Which lead-based hazard information pamphlet must be provided by the seller/lessor to the buyer/lessee for property built prior to 1978?

Answer 30

Protect Your Family From Lead in Your Home

Question 31

A seller (transferor) or real estate agent involved in the transaction must disclose which of the following that affect the value or desirability of the property?

Answer 31

Any material facts

Question 32

Every lease or rental agreement and every sales contract is required to include statutorily-defined notice regarding the existence of public access to database information regarding sex offenders. This is known as the:

Answer 32

Megan’s Law Disclosure.

Question 33

The seller is required to notify buyer if a death has occurred on the property within how many years?

Answer 33

3 years

Question 34

Which disclosure statement includes the seller is mandatory disclosure of specified items and any known adverse material conditions, as well as sections for sellers and buyers agents to comply with diligent and visual inspection requirements?

Answer 34

Transfer Disclosure Statement (TDS)

Question 35

Which 14-page advisory, although not mandatory, remind the buyers and sellers of the importance of investigating a property for sale, listing how many property aspects to consider, such as soil conditions, geologic hazards, environmental hazards, mold, water intrusion, fire hazards, building permits, and HOA rules?

Answer 35

Statewide Buyer and Seller Advisory (SBSA)

Question 36

According to California Withholding guidelines for the Franchise Tax Board, buyers must withhold what percentage of the gross sales price?

Answer 36

3.33%