Chapter 3 Flashcards
Failing to provide financing in certain communities is called:
a. redlining
b. redevelopment
c. panic selling.
d. subordination
A
The __________ prohibits discrimination in lending based on race, color, religion, national origin, sex, marital status or age.
a. Unruh Civil Rights Act.
b. Federal Fair Housing Act (FFHA).
c. American with Disabilities Act (ADA).
d. Equal Credit Opportunity Act.
D
The __________ requires lenders to compile and submit their home loan origination data to their respective supervisory agencies.
a. Equal Credit Opportunity Act
b. Home Mortgage Disclosure Act (HMDA)
c. Home Affordable Modification Plan (HAMP)
d. Federal Fair Housing Act (FFHA)
B
A property defect, if known to a buyer, which would likely affect the price they are willing to pay and must be timely disclosed, is referred to as:
a. a material fact.
b. a matter of opinion.
c. circumstantial evidence.
d. None of the above.
A
The methods for gathering adverse facts about the property’s fundamental characteristics include:
a. advising the seller on risk avoidance procedures.
b. conducting a visual inspection of the property.
c. responding to inquiries by the prospective buyer.
d. All of the above.
D
A seller of a one-to-four unit residential property must complete and deliver to a prospective buyer a statutory form called a:
a. Transfer Disclosure Statement (TDS).
b. Condition of Property Disclosure Statement.
c. Both a. and b.
d. Neither a. nor b.
C
Environmental hazards located off the property, but which have an adverse effect on the use of the property, include:
a. industrial zoning in the neighborhood of the property.
b. military ordnance sites within one mile of the property.
c. airport influence areas established by local airport land commissions.
d. All of the above.
D
Locations where a property might be subject to natural hazards include:
a. very high fire hazard severity zones.
b. potential flooding and inundation areas.
c. seismic hazard zones.
d. All of the above.
D
To unify and streamline the disclosure by a seller and his agent about natural hazards affecting a property, the California legislature created a statutory form called the:
a. Transfer Disclosure Statement (TDS).
b. Natural Hazard Disclosure Statement (NHD).
c. Conflict of Interest Disclosure.
d. Settlement Statement.
B
The Natural Hazard Disclosure Statement (NHD) requires the seller’s agent to disclose to a prospective buyer whether they have knowledge the property:
a. has a roof greater than three years old.
b. is located in a fault zone.
c. is located in an area with a high crime rate.
d. has an outdoor pool.
B
