Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate > Consumer Protection Law > Flashcards

Consumer Protection Law Flashcards

1
Q

MGL Chapter 93A

A
  • Massachusetts General Law Chapter 93A
  • Consumer Protection Act
  • Enacted in 1976, then amended in 1969 to allow for private right of action.
  • Purpose: Protects consumers from unfair & deceptive business practices.
  • MGL chapter 93A is the reason for a lot of real estate disclosure requirements.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Licensees are treated as what according to MGL chapter 93A?

A

Licensees are treated as business and are held to the same standards as any other business when it comes to consumer protection.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

In reference to MGL 93A, what do consumers have the right to do?

A

They have the right to file a claim in court & collect monetary damages for a violation of MGL Chapter 93A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What could get someone into trouble when it comes to MGL chapter 93A?

A
  • Puffing: Exaggerating information (could have some truth).
  • Failing to disclose material defects (foundation issues, lead, etc.).
  • Not upholding a refund/warranty.
  • False Advertising: Blatant lying, misrepresentation.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the guidelines for filing a claim under MGL Chapter 93A?

A
  • Matter must involve a business/licensee.
  • One must have suffered monetary damages (or could have).
  • Complaining party must write a 30 day demand letter.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is in a 30 day command letter?

A
  • Who: offending business/licensee.
  • What: Offense alleged of.
  • When: Time frame.
  • How: Prove the unfair practice caused (or could cause) loss of money (hardship).
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Does intent matter when it comes to MGL Chapter 93A violations?

A

No; Whether or not you meant to deceive someone doesn’t matter.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the penalties for MGL Chapter 93A violations?

A
  • Minimum: Double damages.

- Maximum: Treble (fancy word for triple) damages, plus attorney fees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the exceptions to the penalties of violating MGL Chapter 93A?

A

If a business makes a reasonable offer that is rejected by consumer; court may limit damages to settlement offer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a home inspection?

A

Opportunity for the buyer to review any defects of a property w/ a licensed professional.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Are home inspections required?

A
  • They are not required by law, but strongly suggested.

- Government backed loans may require, but that’s on the lender, not the law.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Who can recommend a home inspector?

A
  • Only the exclusive buyer’s agent is allowed to.
  • Listing agents can only provide the full state list approved inspectors (NACHI.org).
  • Dual agents can only provide the NACHI.org list because seller representations supersedes.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What must buyers be given when the P&S is signed?

A

Buyers must be given a MA Home Inspector Brochure when the P&S is signed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Environmental hazards include…

A

Mold, lead, radon, fuel tanks, etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Do hazardous materials prohibit the sale of real estate?

A

No, but they must be disclosed up front.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

21E certificate

A

Certifies that a property is free from contamination.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Brownfields

A

Lands that have been previously used for commercial purposes & are contaminated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Greenfields

A

Lands that have not been contaminated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

DEP

A

Massachusetts Department of Environmental Protection

-Provides liability relief & financial incentives to clean up contaminated sites under Brownfields Act of 1998.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Prior to what year was lead paint commonly used in homes?

A

1978

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the dangers of lead paint?

A

-If ingested (inhaled or eaten), can cause brain, kidney, nerve, & blood damage.
-Children under age 6 are especially at risk.
Lead poisoning has been linked to behavior issues & learning disabilities as well.
-Pregnant women are also at risk.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Does the presence of lead pain always have to be disclosed?

A

Yes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Both the sale and rental of real estate build prior to 1978 require what in terms of lead paint?

A

Lead Paint Disclosure Form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Different lead paint statutes

A

-Is there lead paint? Y/N/Unknown
-Has the property been tested? Y/N/Unknown
-If positive, when did they de-lead?
Must have either a letter of compliance or a de-lead certificate in hand.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Massachusetts Property Transfer Lead Paint Notification form (state) & Protect Your Family from Lead in your Home pamphlet (EPA)

A
  • Required for prospective purchases of real estate build prior to 1978.
  • Must sign before P&S.
  • Buyer is given 10 day lead inspection provision by Federal law.
    • May waive.
    • This is NOT a lead contingency form.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

If a pregnant person or a child under 6 years old lives in a home built prior to 1978, what must the homeowner do?

A

Homeowner must test for lead & de-lead or encapsulate within 90 days. No exceptions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Massachusetts Tenant Lead Law Notification form

A
  • Required for prospective tenants of real estate build prior to 1978.
  • Must sign prior to or w/ lease.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

If a prospective tenant/current tenant is pregnant or has a a child under 6 years old, what must the landlord do?

A
  • Landlord must test & de-lead any positive areas.
  • Landlord must pay for cost of de-leading + any costs of alternative housing for the tenant that is more than the cost of monthly rent.
  • Tenants may not waive testing/de-leading.
  • Landlord may not deny tenancy (no Fair Housing exemptions).
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

When is de-leading not required?

A

For short term housing.
-MA: <31 days
Federal: < 100 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Asbestos

A

Used as an insulation material & fire retardant.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What are the dangers of asbestos?

A

Prolonged use leads to asbestos, mesothelioma & lung cancer.

32
Q

When did the EPA ban the use of asbestos?

A

EPA banned the use of asbestos in 1989, then overturned ban in 1991.

  • Use in homes was banned in 1978.
  • Installers were permitted to use up their stock until 1989.
33
Q

Where is asbestos most commonly found?

A

Mostly seen in “popcorn” ceilings or flocked ceilings, 9x9 tiles, & on heating pipes.

34
Q

When does asbestos become dangerous?

A
  • When it’s in poor repair or friable state (crumbling).
  • Must be removed or encapsulated (if possible).
    • Subject to 310 CMR 7.00
    • Removal must be done by licensed professional.
    • DEP & DLS must be notified 10 days prior to removal.
35
Q

Radon

A

Colorless, odorless gas.

-Caused by natural breakdown of radioactive elements in the soil.

36
Q

What are the dangers of radon?

A

Radioactive & causes cancer.

37
Q

Homes in high risk areas must be what in terms of radon?

A

They must be tested.

  • especially the 1st floor & finished basement.
  • Levels of 4pCl/L+ must be mitigated.
38
Q

How many homes are affected by radon?

A

1 in 15

39
Q

How should you handle buyers in terms of radon?

A

Encourage your buyers to have a radon test, especially if they are in a high/moderate risk zone. Can google it.

40
Q

Are radon contingencies a thing?

A

Radon contingencies are often built into the home inspection contingency, however you can always add additional radon contingency for your buyers.

41
Q

Mold

A

Occurs due to damp environments w/ poor ventilation.

42
Q

Where is mold commonly found?

A

In vinyl wallpaper, exterior insulation, finished systems, & HVAC ducts.

43
Q

Stachybotrys

A

Genus of mold that contains 50 different species.

44
Q

What is the most concerning type of mold?

A

S. Chartarum & S. Chlorochalonata = black mold

45
Q

Black mold

A

Most toxic & linked to air quality indoors that can cause health issues.

46
Q

Does home owners insurance cover mold?

A

Homeowners insurance often excludes mold.

47
Q

Are mold disclosures required in rentals?

A

Yes.
-Failure to disclose mold by a landlord could cause a violation of state sanitary code & become grounds for constructive eviction.

48
Q

UFFI

A

Urea-Formaldehyde

-Insulation material that when it breaks down causes formaldehyde vapor.

49
Q

When was UFFI banned?

A

1979

50
Q

Does UFFI have to be disclosed?

A

No, but it it best practice to disclose if you know about it.

51
Q

How are lenders handled in terms of UFFI?

A

Under law passed in 2002, lenders reman liable, however it is so old that at this point it is not very toxic.

52
Q

Chlordane

A
  • Used to treat pest infestation in the 1940s-1980s.

- Acted as a chemical barrier or “electrical fence” between pests and the home.

53
Q

What are the dangers of Chlordane?

A
  • It is toxic.

- It impacts well water and air quality.

54
Q

PCBs

A

Polychlorinated Biphenyls

->200 different chemical compounds that aren’t naturally found.

55
Q

What are the dangers of PCBs?

A

They cause cancer.

56
Q

Where are PCBs mostly found?

A

In commercial properties.

57
Q

CFCs

A

Chlorofluorocarbons

-Non toxic, non-flammable chemicals.

58
Q

What are CFCs used for?

A

Used as refrigerants in A/Cs, fridges, freezers, aerosol sprays, paints, etc.

59
Q

What are the dangers of CFCs?

A

They cause ozone layer depletion.

60
Q

USTs

A

Underground Storage Tanks

  • Storage tanks used for chemicals or gas.
  • More than 10% buried underground.
  • Banned in MA under 21E.
  • Disposal requires presence of fire dept. & DEP.
61
Q

Title V

A

Requires septic system to pass inspection.

  • Must obtain passing certificate.
    • 2 yrs. prior to sale or…
    • 3 yrs. prior to sale, if system was pumped each year or…
    • 6 months after sale.
62
Q

Who may perform a Title V septic system inspection?

A
  • Certified engineers
  • Health officers
  • Board of Health
  • Septic installers/haulers
  • Registered sanitarians
63
Q

If septic system fails inspection, who brings it into compliance?

A

Buyer & seller negotiate who will bring it into compliance.

64
Q

Safe Water Drinking Act of 1974

A
  • Permits EPA to set standard for drinking water.
  • Drinking water issues must be disclosed.
  • If your buyer is purchasing a property w/ well water or a non-municipal water system, recommend they have the water tested for contamination.
65
Q

Which hazardous materials must be disclosed?

A

All known hazards.

66
Q

MA smoke Detector Regulations

A

Sale of MA real estate built prior to 1975 requires the a Smoke Detector Certificate signed by a local fire chief.
-Most lenders will require this certificate too.

67
Q

What are the smoke detector requirements for a 1-2 family home in MA?

A
  • Real estate built prior to Jan 1, 1975, may have battery operated detectors.
  • Real estate built or permitted 1975-1977 must have interconnected hardwired detectors.
  • Real estate built or permitted after 1977 must have interconnected detectors w/ battery backup.
68
Q

What are the MA smoke detector regulations for a multifamily home?

A
  • Must have smoke detectors in units & common areas.

- Type of system depends on number of units.

69
Q

As of December 2016, what must all battery operated smoke detectors be?

A

10 yr. + photoelectric sealed.

70
Q

Carbon Monoxide Regulations

A

As of March 31, 206, MA homes must have carbon monoxide detectors if:

  • The home has fuel-burning equipment that produces carbon monoxide.
  • Indoor parking is adjacent to the living areas of the home.
  • Law applies to all home, not just those for sale.
71
Q

What do new construction homes & recent renovations need in terms of carbon monoxide detectors?

A

They must have hard wired detectors.

72
Q

Older homes can have what in terms of carbon monoxide detectors?

A

Battery operated, plug-in detectors.

73
Q

Combination smoke and carbon monoxide detectors must have what?

A

Tone & voice feature.

74
Q

Construction warranty

A

States that all products used in construction were new & of “good quality”, the work is free from defects & has been produced according to the agreed upon contract.
-Builders sometimes give 1 year warranty, although it is not required

75
Q

Implied Warranty of Habitability

A
  • Massachusetts automatic 3 year warranty.
  • Covers structural integrity or the property, systems, mechanics, anything that keeps the property habitable & out of the elements (roof/windows).
  • judge will determine if there had been a breach of the warranty.

Real Estate (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions