Chapter 5 Flashcards
The use of an “as-is” clause in a purchase agreement to make the buyer waive delivery of a Transfer Disclosure Statement (TDS) is void as it is against public policy.
a. True
b. False
A
A buyer has ________ from the close of escrow to recover losses caused by the negligent failure of the seller’s agent to disclose a property’s observable and known material defects.
a. one month
b. six months
c. one year
d. two years
D
A seller’s agent is exempt from conducting a visual inspection of a one-to-four unit residential property when the seller is exempt from using the Transfer Disclosure Statement (TDS).
a. True
b. False
B
An automatic reverse safety device is required for all automatic garage doors installed after:
a. January 1, 1990.
b. January 1, 1991.
c. January 1, 1992.
d. January 1, 1993.
B
A separate form is required to be filled out if the water heater is marked as being in compliance on a TDS form.
a. True
b. False
B
The use of a home inspection report (HIR) does not relieve a seller’s agent of their duty to visually inspect the property.
a. True
b. False
A
If a buyer discovers an error in an HIR which affects the property’s value or desirability, they have ________ after the date of the inspection to file a legal action to recover money losses.
a. one year
b. three years
c. four years
d. five years
C
A home inspector may not pay a referral fee to a licensee for the referral of any home inspection business.
a. True
b. False
A
When a seller has refused to authorize the preparation of an HIR prior to entering into a purchase agreement, the buyer is advised to order one:
a. on entering into a purchase agreement.
b. after the expiration of any contingent cancellation period.
c. after escrow has closed.
d. on opening escrow.
D
A buyer is able to enforce a reduction of the purchase price before closing for defects undisclosed to the buyer if the purchase agreement contains a price adjustment provision.
a. True
b. False
A
