Chapter 7 Flashcards
Annual increases in the dollar amount levied as regular assessments by a homeowners’ association (HOA) are limited to a _____ increase over the prior year’s assessments.
a. 5%
b. 10%
c. 20%
d. None of the above.
C
A buyer is advised to request a list of defects from an HOA to get a better idea of the probability of regular and special assessment increases in the near future.
a. True
b. False
A
An HOA is obligated to provide the documents requested by a seller within ______ of the seller’s written request.
a. 3 days
b. 5 days
c. 10 days
d. 21 days
C
On one-to-four residential dwellings, a seller’s agent has an affirmative duty to disclose their knowledge of possible tax consequences.
a. True
b. False
B
To avoid misleading a client, a broker or agent is advised to:
a. disclose the full extent of their tax knowledge regarding the transaction.
b. advise the client to seek the advice of a tax professional.
c. disclose how the broker or agent acquired their tax knowledge.
d. All of the above.
D
As a matter of basic competency, brokers and agents will possess an understanding of fundamental tax concepts regarding:
a. the separate profit and income categories for different types of real estate.
b. the §1031 profit reporting exemption.
c. Both a and b.
d. Neither a nor b.
C
A seller’s agent has an affirmative duty to voluntarily disclose to a buyer information regarding a death on the property which occurred more than three years prior to the purchase offer.
a. True
b. False
B
On direct inquiry by a buyer or their agent, a seller’s agent must disclose their knowledge of any deaths on the property.
a. True
b. False
A
Deposits into an impound account are considered operating expenses.
a. True
b. False
B
fter receiving an Annual Property Operating Data sheet (APOD) from the seller’s agent, the buyer is advised to:
a. review tenant files.
b. confirm utility payments.
c. get quotes on hazard insurance premiums and taxes.
d. All of the above.
D
