CHAPTER SIX PROPERTY DISCLOSURES

Question 1

____- refers to incredulous claims made by sellers or seller’s agents to attract potential buyers.
Exaggerating the positive points of a home may seem harmless, but there is a fine line between
creative marketing and fraudulent statements that simply aren’t based on facts

-not determined to be a legally binding promise

Answer 1

Puffing

Question 2

____ MISREPRESENTATION- is the failure of a real estate licensee to use reasonable care to uncover and reveal
property defects. This duty goes further than the requirement to disclose known material defects.
It requires the licensee to be proactive in discovering potential defects and issues. However, liability
for negligence does not include the detection of defects outside a real estate professional’s expertise.

Answer 2

Negligent Misrepresentation

Question 3

Types of Fraud

____ FRAUD- happens when a real estate licensee
makes a claim that they know is false

• AKA actual fraud

____ FRAUD- happens when a real estate licensee purposely
fails to disclose material information impacting a real estate transaction (This is also known as a negative fraud)

Answer 3

ACTIVE

PASSIVE

Question 4

___ dealing- involves an agent or broker who acts in his own best interest in a real estate transaction
rather than in the best interest of his client, to whom he owes a fiduciary responsibility.

Answer 4

Self-Dealing

Question 5

____- d is a naturally occurring element found in the earth which was widely used in applications
before it was discovered to be toxic to people and animals. It was present in pipes, plumbing,
batteries, cosmetics, and in the paints of older homes, and can be found in the air, water, and
ground.

• In homes and buildings built before 1978, d. Lead can leak into water through lead pipes and fixtures, generally found in older
  buildings. The grounds around a building dating before 1978 could also be contaminated.

Answer 5

Lead

Question 6

Children can consume soil that’s contaminated or inhale the dust due to the fact that kids put
everything in their mouth. However, the most common way children are exposed to lead poisoning
is by lead-based paint. When they eat or inhale the contaminated lead they absorb more into their
systems, as much as five times as much as adults, because they’re more sensitive to it

Answer 6

lead

Question 7

Lead exposure generally has no visible symptoms. Evidence of lead poisoning in children might
be learning disabilities, developmental delays, loss of appetite, abdominal pain, sluggishness, and
harm to the nervous system.

Answer 7

lead

Question 8

There are two ways lead-based paint is discovered and handled. One is through renovation, repair,
and painting (RRP) and the other is \_\_\_\_ (complete removal of lead paint) - regulated by EPA.

Answer 8

abatement

Question 9

The Residential LeadBased Paint Hazard Reduction Act of 1992 (LBPHRA), also known as Title X, was passed to ……?

Answer 9

protect

people from the dangers of lead exposure that can occur from dust, soil, and paint.

Question 10

The seller must produce any records or reports about lead-based paint or related hazards, and a ___ ____
Statement is to be included with the purchase paperwork along with verification
that the seller has followed the regulations. The sellers should keep a copy of their disclosures for
a minimum of three years after the sale.

Answer 10

Lead Warning

Question 11

The seller must produce any records or reports about lead-based paint or related hazards, and a ___ ____
Statement is to be included with the purchase paperwork along with verification
that the seller has followed the regulations. The sellers should keep a copy of their disclosures for
a minimum of three years after the sale.

Answer 11

Lead Warning

10-day period to get testing done

Question 12

If the agent represents the buyer, a home-inspection ____ should be part of the offer so
the buyer can have the property inspected by a home inspector.

Answer 12

contingency

Question 13

____- A naturally occurring mineral fiber sometimes found in older homes. It is
hazardous to health when a possibility exists of exposure to inhalable fibers. Homeowners
should be alert for friable asbestos and always seek professional advice in dealing with it.

____- Easily crumbled or reduced to power. Asbestos is an example of a friable substance.

Answer 13

Asbestos

Friable

Question 14

____– - A chronic lung disease caused by inhaling asbestos fibers.

Answer 14

Asbestosis

Question 15

___- Asbestos is a mineral fiber that has fire-resistant and insulation properties, and because of this,
it was popular, for a period of time, in home construction. It was an inexpensive material used on
pipes and in attics but also incorporated into many other products such as floor coverings, siding,
plaster, roofing, caulking, and glue.

Answer 15

Asbestos

Question 16

___- Radon is a naturally occurring radioactive gas that is colorless and odorless. It’s commonly found
in soil and igneous rocks and is a result of the decaying uranium and thorium in the ground. It can
also be found in well water.

• Based on human and animal studies, radon has been determined to be harmful to people and
  animals and consequently, radon has become an important public health issue. It is estimated that
  15,000-20,000 deaths a year are related to radon, primarily from lung cancer.

Answer 16

Radon

Question 17

The most common way radon gets into houses is through _____ . If the house wasn’t there, the radon
would naturally dissipate into the air, but with a house on the land the radon gets trapped in the
house. It can also enter through openings in the home, cracks and tiny holes in concrete, gaps in
the foundation, and leaks in the area around pipes and wires. Once it enters from the outside, it can
collect in the lower places like a basement or crawl space, because radon is heavier than air.

• Radon is water soluble, so it can move through the water that travels underground

Answer 17

soil

Question 18

Radon is considered a class-one carcinogen, which means it was found to be a definite cancercausing substance. What makes radon particularly dangerous are the alpha radiation particles. It’s
the same type of radiation that materials such as plutonium produce. When it is isolated outside
the body it’s not as harmful as some other types of radiation, such as beta and gamma rays, but it
becomes damaging when it’s ingested or inhaled

Answer 18

Radon

Question 19

____- is a naturally occurring element. Outside, mold helps to decompose dead materials like leaves
and trees and leaf mold is often used in organic gardening. However, mold in the home is another
issue altogether.

Answer 19

Mold

Question 20

There is mold everywhere, in dust and floating in the air. Molds have microscopic-sized spores that
are present in the air, and when they blow into a house, they can become a problem. If they land on
a wet surface or are in a moist environment, they multiply.

Answer 20

Mold

Question 21

___ ____- is a poisonous gas that is colorless, odorless, and tasteless, which makes it
very dangerous. It is a result of natural gas or other material which has carbon in it, like kerosene,
propane, or wood. It’s frequently mixed with gases that do have an odor to make it easier to detect.
The best known and most common occurrence of CO is from the exhaust of an internal combustion
engine. Stoves, grills, fireplaces, gas ranges, or furnaces are possible sources in homes and it’s a
concern because someone exposed to large amounts of CO can lose consciousness and eventually
suffocate.

Answer 21

Carbon Monoxide

Question 22

When carbon monoxide is inhaled, it ___ the oxygen in the blood. This starves the brain,
heart, and organs of oxygen. Exposure can cause headaches, drowsiness, nausea, or dizziness, and
symptoms are often described as flu-like. People with heart problems can experience chest pain.
Continued exposure can lead to vomiting, confusion, and muscle weakness

Answer 22

displaces

Question 23

Carbon monoxide detectors alert the household to CO concentrations much like smoke detectors do
for fire and smoke levels and are now mandated by most building codes. Like smoke detectors, the
batteries should be changed regularly and the unit tested. Additional precautions include getting
the heating system, water heater, gas appliances, and gas fireplace serviced yearly and make sure
all gas appliances are properly vented.

Answer 23

Carbon Monoxide

Question 24

When there are power outages or serious weather events like hurricanes, people do what they can
to stay warm and cook food, but certain items should never be used inside. Do not use chemical
heaters, portable gas camp stoves, or burn charcoal indoors, as fumes can be toxic. Don’t use a gas
oven to heat the home. Generators should be used outside and kept a minimum of 20 feet from
doors, windows, and vents.

Answer 24

Carbon Monoxide

Question 25

___ ___ carbons- A fluid, containing hydrocarbons, that absorbs heat from
a reservoir at low temperatures and rejects heat at higher temperatures. When emitted into
the atmosphere, CFCs cause depletion of the stratospheric ozone layer

• are chemicals that are made
  up of carbon, chlorine, fluorine and carbon
• They are found in aerosol sprays, solvents, and refrigerants

Answer 25

CFCs - chloro-flouro Carbons

Question 26

___- Moderately toxic gases or liquids which have typically been used as refrigerants (in
air conditioning units) and as aerosol propellants.

Answer 26

Freon

Question 27

___ ___ fields- s are an invisible field of energy, also called radiation, that consist of electric
and magnetic components. These energy areas are created by electricity, which is the movement of
current, or electrons, carried through wires.

• Cancer is one of the primary areas being studied in relation to electromagnetic fields, and the
  concern is that the non-ionizing EMFs are found everywhere, like our workplaces, schools, stores,
  offices, and homes.

Answer 27

EMFs

Question 28

EMFs can affect the value of property. In litigation, landowners have been compensated by the
courts for the damage caused by the negative perception and fears buyers have about EMFs, with
the result of reducing the price the property can sell for

Answer 28

EMFs

Question 29

______- - A type of foamed in-place insulation that
releases formaldehyde gas. It was banned by the Consumer Public Safety Commission in
1982 from use in residences and schools. Holding that the risks had not been proven, a
Federal Court lifted the ban in 1983. The local consumer and/or environmental protection
agency should be consulted for additional information on this type of insulation.

Answer 29

UFFI - Urea Formaldehyde Foam Insulation

Question 30

___- e is a colorless gas with a strong odor that is flammable at room temperature, or it can
be in a liquid form which is called formalin. It’s used in household products and to make building
materials. Formaldehyde can be found in paint, carpets, particle board, and some furniture.

Answer 30

formaldehyde

Question 31

The Environmental Protection Agency (EPA) considers formaldehyde a probable human carcinogen
but it hasn’t established any standards for exposure at this time. Formaldehyde is, however,
considered to be one of the substances contributing to sick building syndrome.
When an industrial or commercial building that has indoor air quality issues where no specific cause
can be found, such as an identifiable contaminant, it is labeled as having sick building syndrome.
Signs of sick building syndrome include the fact that at least one out of every five people exhibit
symptoms that disappear when they leave the building. The symptoms could be headaches, sore
throat, skin irritations, nausea, scratchy eyes or tiredness.

Answer 31

formaldehyde

Question 32

__ ___ __ __- was often used as a way to reduce energy costs. In existing homes, it served
as a retrofit energy-saving product, with urea-formaldehyde resin sprayed into areas that were
difficult to reach, such as spaces behind walls, where it would expand, filling the empty space to
better insulate it. Additional formaldehyde was frequently added to extend the shelf life and hasten
curing.

Answer 32

Urea Formaldehyde Foam Insulation

Question 33

__ ___ TANKS- A tank and any underground piping connected to the tank
that has at least 10 percent of its combined volume underground.

-

Answer 33

Underground Storage Tanks

Question 34

__ ___ TANKS- A tank and any underground piping connected to the tank
that has at least 10 percent of its combined volume underground.

• is a tank that usually holds fuels, chemicals, or waste. The
  definition of a UST is the tank, but also includes underground piping connected to the tank when
  10% or more of the combined volume is underground.

Answer 34

Underground Storage Tanks

Question 35

Why are they dangerous?
Before the mid-1980s USTs were commonly made of bare steel. The problem with this was that
steel would corrode and the toxic contents of the tank would leak the hazardous substances and
contaminate the ground and water around it.

Answer 35

underground storage tanks

Question 36

Where are USTs found?
Locations where there was a gas station, auto repair shop, maintenance shop, tire and battery
storage or recycling or similar businesses could have underground storage tanks. In residential
areas, old tanks are often found where heating oil was used for the home.

Answer 36

underground storage tanks

Question 37

In 1986, the ___ ____ ___ (EPA) passed regulations specifying that owners and
operators of USTs have financial responsibility and would have to prove they have the resources
to pay for necessary corrective actions and cover the cost of people who were injured, as well as
repairing property damage that occurred because of tanks that leaked.

Answer 37

Environmental Protection Agency

Question 38

Subsequent laws include inspecting regulated USTs every ___ years, and implementing guidelines
for training, inspections, responsibility, and compliance.

-If the buyer purchases a property with a discarded UST, even if they didn’t know it at the time,
there could be liability issues at a future date for that buyer.

Answer 38

three

Question 39

___ ___- While the aquifer strains larger debris out of the water naturally through percolation, it cannot
filter out all pollutants, and groundwater is very vulnerable to contamination. This contamination
can come from landfills, leakage from waste disposal sites or underground storage tanks, septic
systems, illegal disposal of hazardous materials, overuse of farming pesticides or fertilizers, road
salt contamination, or other human activities. Once groundwater is polluted, it becomes unsafe to
drink and has to be cleaned before it can be used.

Answer 39

Groundwater Contamination

Question 40

____-is where trash and waste are buried. It is different than a dump, which is usually a pit or
pile of garbage uncovered where animals and birds can pick at the debris. A landfill is designed in
or on the ground with a liner in place to prevent contamination with the surrounding environment.
The liner is clay for a sanitary landfill, and plastic in a municipal solid waste landfill (MSW).

Answer 40

Landfills

Question 41

___ site- is one that has, or might have, the presence of a hazardous substance or
contaminant. These sites are often abandoned, out-of-service, or neglected commercial or
industrial locations which become unsightly and filled with debris.

Answer 41

brownfields site

Question 42

___ ___ systems- basically, mini underground wastewater treatment systems. Septic systems are commonly used in
rural areas and places that do not have a centralized sewer system and municipal treatment plant. Wastewater from these
sources typically relies on gravity to flow down drainage pipes that tie into a single drainpipe. That
drainpipe carries excess liquids to the septic tank.

Answer 42

Residential Septic Systems

Question 43

These tanks are designed to hold the wastewater long enough to separate the solids that sink and
form a sludge at the bottom. The wastewater then flows into perforated pipes in an underground
absorption field. Sometimes called a “drain field,” the wastewater percolates into the soil as nature
cleanses the water of harmful byproducts and disperses it.

Answer 43

Residential Septic Systems

Question 44

In Tennessee, the pipe that runs from the septic tank to the absorption field must typically be _____
inches in diameter or larger. This pipe must have Schedule 40 PVC strength or greater, with limited
exceptions.

Answer 44

three

Question 45

___ ____- It is, simply, a hole in the ground from
which water is drawn to the surface. Modern wells are usually narrow holes held open by PVC
casings or another sturdy material that provides a pathway for water to be pumped into a home.
These hard casings prevent contaminants, rocks, and soil sediment from infiltrating drinking
water.

Answer 45

Residential Wells

Question 46

The diameter of a residential well runs six-and-five-eighths of an inch in Middle and Eastern
Tennessee. In Western parts of the state, the diameter can be as narrow as four inches.
• Well systems include a pump to extract water and a storage tank to hold it inside the home. For
a well to handle the typical water usage of a household of four to six people, it should yield three
to five gallons per minute.
• Pumps can be submerged at the bottom of the well or stored in the house to draw water to the
tank.
• Wells must be adequately vented and securely capped.
• Wells typically have screens to prevent clay, sand, gravel, and soil from being pulled into the
pumped out water

Answer 46

Residential Wells

Question 47

One of the more prevalent issues real estate professionals encounter is the impact of low pH levels.
When pH levels are below seven, the well water is generally considered acidic. Acidic water tends to
corrode copper and metal pipes more quickly. If you see _____ build up around copper pipe joints,
the water may be acidic.

Answer 47

green