Chapter 4: Disclosures

Question 1

1. Which of the following is not true regarding a licensee’s duty in a real estate transaction?

A. A listing licensee owes a duty of fairness only to her broker’s client, not the buyer.
B. A broker has a fiduciary duty to her client.
C. Any material facts that the licensee becomes aware of must be disclosed to her client.
D. All of the above.

Answer 1

D. All of the Above

Question 2

2. Which of the following is not true regarding agency disclosure?

A. A licensee need not provide the seller of a rental property with an agency disclosure.
B. The agency disclosure must be signed by the buyer at least ten days prior to close of escrow.
C. Neither a nor b.
D. Both a and b.

Answer 2

D. Both a and b

Question 3

3. Which of the following is true regarding agency disclosure?

A. The listing licensee must confirm the agency prior to completing the listing agreement.
B. The three steps to the disclosure process are disclose, elect, and confirm.
C. The confirmation of agency must be in writing.
D. All of the above.

Answer 3

D. All of the above.

Question 4

4. The legislation resulting from
   Easton v. Strassburger limits the licensee’s duty of inspection and disclosure to which of the following?

A. A visual inspection only.
B. Accessible and inaccessible areas.
C. All types of property.
D. None of the above.

Answer 4

A. A visual inspection only.

Question 5

5. Which of the following sellers must provide a Real Estate TDS?

A. The seller of an owner-occupied triplex.
B. The seller of a small office building.
C. The seller of a residential lot.
D. None of the above.

Answer 5

A. The seller of an owner-occupied triplex

Question 6

6. A special study zone refers to which of the following?

A. An inner-city redevelopment area.
B. An area of land that is steeply sloped.
C. An area that is 1/8th of a mile on either side of a known earthquake fault line.
D. Any area of undeveloped land.

Answer 6

C. An area that is 1/8th of a mile on either side of a known earthquake fault line.

Question 7

7. Which of the following is the purpose of bracing a water heater?

A. To make it last longer.
B. To stabilize it in the event of an earthquake.
C. To allow for better water flow.
D. To install it in a location where a pressure-release valve can be installed.

Answer 7

B. To stabilize it in the event of an earthquake.

Question 8

8. Under the Truth-in-Lending Act (TILA), when a homeowner obtains a home equity loan on her home, the rescission period is

A. noon the following business day.
B. within five days after close of the purchase escrow.
C. there is no right of rescission period for a refinance.
D. midnight of the third business day following completion of the loan.

Answer 8

D. midnight of the third business day following completion of the loan

Question 9

9. A “Watch Out for Lead-Based Paint” notice must be given to the buyer of any one to four residential unit built prior to which one of the following years?

A. 1960
B. 1930
C. 1978
D. None of the above

Answer 9

C. 1978

Question 10

10. The California Real Estate Law Disclosure Chart was created by which of the following organizations?

A. California Association of Real Estate Boards
B. Mortgage Banker’s Association
C. California State Bar Association
D. California Association of REALTORS®

Answer 10

D. California Association of REALTORS®