Chapter 4 Quiz Flashcards
When does Wisconsin’s seller disclosure law require a seller to complete a real estate condition report?
A. If the property is located in Illinois but owned by Wisconsin residents.
B. If the property was built before 1978.
C. If the property contains five or more dwelling units.
D. If the property includes 1-4 dwelling units.
D. Wis. Stat. Ch. 709 requires seller disclosure on transactions involving properties that include 1-4 dwelling units.
When could a listing firm be found liable for misrepresentation?
A. If a seller misrepresents information to the buyer.
B. If a buyer’s firm misrepresents information to the buyer.
C. If a listing licensee misrepresents information to the buyer.
D. If a cooperating firm misrepresents information to the buyer.
C. Wis. Stat. 452.139(2)(b) A firm that is providing brokerage services to a client and who retains another firm to provide brokerage services to that client is not liable for a misrepresentation made by the other firm, unless the firm knew or should have known of the other firm’s misrepresentation or the other firm is repeating a misrepresentation made by the listing firm.
What must a property owner do after purchasing a property with an in-use, unregistered 1,200-gallon underground storage tank?
A. Register the tank with the Department of Natural Resources.
B. Drain the tank and fill it with sand.
C. Remove the tank.
D. Register the tank with the Department of Agriculture, Trade and Consumer Protection.
D. Wisconsin law requires the owners of property with existing, unregistered storage tanks to register them with the Department of Agriculture, Trade and Consumer Protection.
What type of gas is thought to cause lung cancer after long-term exposure?
A. Carbon dioxide
B. Carbon monoxide
C. Hydroxide
D. Radon
D. Radon is an odorless radioactive gas that can enter a home through cracks in the foundation or drains in the floor. It is thought to be the second-leading cause of lung cancer.
What information must a salesperson include in advertisements for real estate on the salesperson’s website?
A. The address of the advertised property.
B. The salesperson’s firm’s name.
C. A list of personal property the seller is including in the sale.
D. The listing price
B. Wis. Stat. 452.136 Except for advertisements for the rental of real estate owned by the licensee, a licensee associated with a firm shall advertise under the supervision of and in the name of the firm.
Which of the following is a licensee required to disclose to a buyer with children?
A. A sex offender has been released from prison and has moved into the neighborhood.
B. The home inspector found significant structural damage to the property, which is outlined in the inspector’s report provided to the buyer and the seller.
C. The house has been on the market for years because of a murder-suicide that occurred on the property.
D. The seller failed to have the required tightness test conducted on the underground storage tank.
D. A licensee does not have to disclose information about stigmatized properties or information that is found in a third party’s report if the all the parties have received the report. A licensee must disclose actual knowledge about sex offenders but a licensee is immune from disclosing this information as long as the licensee provides the requesting party with written information containing the website and toll-free phone number for the Wisconsin Department of Correction’s sex offender registry.
A firm listing a property in “as-in” condition. The seller disclosed to the listing licensee that the roof leaks, the furnace is 30 years old, and the plumbing needs repairs. A buyer writes an offer on the property and neither the seller nor the listing licensee discloses any of the problems with the property because the seller listed it “as-is.” Which of the following statement is true?”
A. The listing licensee does not have to disclose conditions as long as the seller is selling it “as-is.”
B. The seller does not have to disclose conditions as long as the buyer writes an offer knowing it is listed “as-is.”
C. A seller cannot list a property “as-is” when the property has condition problems.
D. A licensee must disclose an “as-is” property’s material adverse facts.
D. Wis. Admin. Code Ch. REEB 24 Conduct and Ethical Practices for Real Estate Licensees. A licensee’s disclosure duties are separate from the seller’s disclosure duties. The licensee must disclose any material adverse facts and information that suggest material adverse facts. Disclosure must be in writing and provided to all parties in a timely manner.
When must a seller complete a real estate condition report?
A. Only when the seller is listing the property with a firm.
B. Only when the seller is selling the property without listing it.
C. Only if the seller wants the property listed in the MLS.
D. If the property is sold for sale by owner or listed by a firm.
D. Wis. Stat. Ch. 709 requires sellers to disclose defects or conditions affecting the property by completing a real estate condition report. It does not matter whether the property is listed or the seller is selling without the assistance of a licensee.
Which of the following does a listing licensee NOT have to do when listing a property?
A. Visually inspect the property.
B. Disclose adverse facts in writing even if the seller is unaware of the facts.
C. Ask the seller about the condition of the property.
D. Provide any potential buyer with all information provided by the seller related to the property.
D. A licensee must visually inspect a property, ask the seller to complete a real estate condition report, and disclose all material adverse facts. A licensee does not have to disclose all information a seller provides and cannot disclose information that a seller provides if that information is confidential.
What material is most dangerous in its friable state?
A. Lead
B. Asbestos
C. Mercury
D. Radon
B. Asbestos is a naturally occurring mineral found in soil and rock in some areas of the United States. Asbestos poses the most risk when it is in a friable state.
Which of the following statements is true of a transaction where a buyer received a real estate condition report before writing an offer on a property?
A. A buyer can require the seller to repair all defects on the property prior to closing.
B. A seller can cancel the transaction if a buyer requires repairs prior to closing.
C. A buyer cannot include an inspection contingency in an offer if a seller provided a real estate condition report before the buyer wrote an offer
D. A buyer cannot rescind an offer based on a condition that the seller disclosed in the seller’s real estate condition report.
D. Wis. Stat. Ch. 709 states that a buyer may not rescind a contract of sale, based on any adverse facts disclosed in the Real Estate Condition Report, if they receive a complete report before submitting the contract of sale to the seller or seller’s agent.
Within how many days of an accepted offer must a seller of a 1-4 family property provide a buyer with a real estate condition report?
A. 5 days
B. 10 days
C. 20 days
D. 15 days
B. Wis. Stat. Ch. 709 states that a seller shall furnish, not later than 10 days after acceptance of the contract of sale, to the prospective buyer of the property a completed copy of the seller’s condition report. A prospective buyer who does not receive a report within 10 days may, within two business days after the end of that 10-day period, rescind the contract of sale.
The presence of something that looks like mold:
A. Must only be disclosed if it is confirmed to be mold.
B. Should be tested for by every licensee.
C. Is unavoidable and never needs to be disclosed.
D. May indicate a material adverse facts that needs to be disclosed by the licensee.
D. A licensee must disclose information that suggest a material adverse fact. A mold-like substance may actually be mold and thus is information suggesting a material adverse fact.
A seller wants to fix a leaky roof before listing the property with a firm. The seller does not want to spend any money on the repairs and hires a local high school student who took a woodworking class in high school to fix the roof. The seller does not mention anything about the roof to the listing licensee. A buyer submits an offer, which the seller accepts. After the transaction closes, the roof leaks and damages a hardwood floor the buyer installed. Which party could be liable to the buyer for damages?
A. Both seller and listing firm.
B. The seller
C. Neither the seller nor the listing firm.
D. The listing firm.
B. The seller did not disclose the roof damage and repair to the listing firm. A listing licensee is not a roof expert and does not have to be able to determine that the roof was damaged and repaired. Because the listing licensee does not have knowledge of the issue, the listing licensee does not have to disclose anything. A seller who does not disclose a defect such as an inadequately repaired roof could be liable for misrepresentation if a buyer incurs harm due to the seller’s actions.
A buyer told a licensee that the buyer will not live in a house that has or had cats. What are a licensee’s responsibilities to the buyer?
A. Say nothing because cats are not considered a material adverse facts.
B. Ask all property owners if there have been cats on the property.
C. Disclose to the buyer the presence of cats if known.
D. Hire a third-party inspector to investigate for the presence of cats.
C. Wis. Admin. Code § REEB 24.07(2) A licensee may not exaggerate or misrepresent facts in the practice of real estate. A licensee, when engaging in real estate practice, shall disclose to each party, in writing and in a timely fashion, all material adverse facts that the licensee knows and that the party does not know or cannot discover through a reasonably vigilant observation, unless the disclosure of the material adverse fact is prohibited by law. This provision is not limited to the condition of the property, but includes other material adverse facts in the transaction. A licensee is not required to retain third party inspectors or investigators to perform investigations of information suggesting the possibility of a material adverse fact to the transaction.
