Chapter 4 True/False

Question 1

All UST’s must have a tightness test done every two years.

True
False

Answer 1

False: Only residential USTs that have 1,100-gallon capacity or larger are required to have a tightness test every two years.

Question 2

A licensee becomes aware of a lead hazard in a property. The licensee must disclose this to both the seller and the potential buyer in writing and in a timely fashion.

True
False

Answer 2

True: Federal law requires disclosure of known lead-based paint and/or lead-based paint hazards by persons selling or leasing houses. Disclosure must be in writing.

Question 3

The EPA may seek penalties if a violation of the lead-based paint disclosure law is committed knowingly and willfully.

True
False

Answer 3

True: Violators of the legislation may face civil and/or criminal penalties as well as triple damages in a private civil suit.

Question 4

The listing licensee’s inspection should consist of operating mechanical equipment, moving furniture and crawling on the roof.

True
False

Answer 4

False: A licensee must look for obvious defects in a structure. Mechanical or structural knowledge is not a requirement of a licensee.

Question 5

Prior to listing a property, a listing licensee must inspect the property and ask the seller about the condition of the property.

True
False

Answer 5

True: Both licensees who are listing a property and licensees who are drafting offers on property must inspect a property for observable material adverse facts.

Question 6

In Wisconsin, a licensee must always disclose the presence of any known sex offender.

True
False

Answer 6

False: A licensee does not need to disclose any information about a sex offender if the licensee provides written information for Wisconsin’s sex offender registry that includes the Department of Corrections’ website and phone number.

Question 7

They buyer receives a real estate condition report before writing an offer. The report disclosed a leak in the basement. Before closing, the buyer wants to remind the offer because of the leak in the basement. The buyer does not have any recession rights.

True
False

Answer 7

True: A buyer may not rescind an offer based on a defect disclosed in the RECR if the buyer was aware of the nature and extent of the defects at the time the offer was submitted.

Question 8

Wisconsin law does not permit as-is sales.

True
False

Answer 8

False: A seller can sell as-is, but a buyer retains a right to rescind an offer to purchase if the seller does not provide a real estate condition report within 10 days of acceptation the buyer’s offer.

Question 9

A seller must provide a potential buyer with condominium disclosure documents within 10 days of accepting the offer and not less that 15 days before closing. After receiving the documents, the buyer has a five-business-day right to rescind the offer.

True
False

Answer 9

True: Any buyer may rescind an offer to purchase a condominium unit, without stating any reason, without liability within five business days following receipt of all information.

Question 10

A third-party inspector does not find any defects during a home inspection. The licensee reviews the inspection report, and it is consistent with the licensee’s knowledge of the propter. The buyer delivers the report to the seller. If a buyer finds a defect after closing, the listing licensee should not be held liable.

True
False

Answer 10

True: A licensee should not be held liable for latent defects.

Question 11

A personal representative is selling a single-family home. The personal representative has not lived in the home. The personal representative must complete a real estate condition report.

True
False

Answer 11

False: Personal representatives who have not lived in the property for sale do not need to complete a real estate condition report.

Question 12

The selling licensee becomes aware of an adverse fact because it is disclosed on the buyer’s home inspection report. The selling licensee has no duty to disclose this information the the buyer or seller if the report is provided to all parties.

True
False

Answer 12

True: Licensees may rely on the results of a home inspection prepared by a third party that discloses information that may constitute a material adverse fact that has been received by the parties.

Question 13

A seller must complete a real estate condition report for the sale of a duplex that the seller has never occupied.

True
False

Answer 13

True: The seller disclosure law applies to all persons who sell or otherwise transfer Wisconsin real estate contain one to four dwelling units. There is not an exemption from the seller disclosure law based solely on the fact that a seller does not live in the property.

Question 14

The Department of Natural Resources regulates underground storage tanks.

True
False

Answer 14

False: The Department of Agriculture, Trade and Consumer Protection regulates underground storage tanks.

Question 15

A seller can accept an offer to purchase on target housing without the lead-based paint addendum as long as the buyer receives the addendum prior to closing.

True
False

Answer 15

False: Every contract for the sale of lease of target housing must include the lead-based pain addendum. Sellers of target housing cannot accept any offer without mandatory lead-based paint disclosure that includes a lead-based paint addendum to the offer to purchase.

Question 16

Asbestos is most dangerous when it is in a friable state.

True
False

Answer 16

True: Friable asbestos fibers are long, thin fibers too small to be seen. Inhalation of asbestos fibers is the method of exposure that is most likely to cause adverse health effects in people.