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Real Estate > Disclose, Disclose, Disclose > Flashcards

Disclose, Disclose, Disclose Flashcards

1
Q

Things to Disclose

A
  • leaky windows
  • Changes that have been done by a permit
  • information about a major development project near the house or neighborhood
  • The disclosure documents are given to protect the buyer and inform the buyer of the current standing of the house. These forms can also protect the seller from legal action in the future since they are disclosing facts about the house
  • pests
  • Improvements made in the house
  • Renovations
  • Upgrades
  • Other standard disclosures include pets, termite problems, neighborhood issues, any history of property line disputes, and defects major systems or appliances.
    -Lead Paint
    -Neighbor disputes or boundary issues
    -Property drainage issues
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2
Q

How Disclosures Benefit the Buyer

A

-Disclosure documents are provided to buyers once the seller has accepted their offer.
-The buyer has an opportunity to review the seller’s disclosures regardless of loan contingency’s and inspections
-If the buyer discovers something negative about the property through disclosure, they can usually back out of the agreement.

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3
Q

How does a seller make a disclosure?

A

The forms vary from state to state
- The forms vary from city and county level
- The law requires that sellers and their agents: - complete or sign dozens of documents (Natural Hazards Disclosure Statement, Local and State Transfer Disclosure Statements, Advisories: Market Conditions and Megan’s Law Disclosures)

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4
Q

statutes

A

Written laws passed by the legislature.

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5
Q

administrative rules

A

These rules for real estate agents, written under the authority of as compiled and organized by the Office of Administrative Rules, are enforced by statute. Therefore, breaking any administrative rule is also in violation of the statute.

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6
Q

Affirmative Duties Required of All Licensed Individuals

A

An administrative rule spelling out the six fiduciary duties of an agent. This includes full disclosure of any material fact about the other party or the transaction. You have a duty under the law to disclose material information to the other side (not just to your client or to your broker) that is not easily discovered by a prudent buyer or obvious in an inspection.

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7
Q

documented disclosure

A

Disclosures that have been documented in writing. Get all disclosures that you make in writing in case you are subpoenaed and need to prove that you disclosed information in the course of a transaction.

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8
Q

Errors and Omissions

A

A category of insurance that covers mistakes made by agents. Every broker is required to carry errors and omissions insurance on every agent; this does not cover fraud.

It is crucial to pay close attention, be extremely detailed oriented, organized, and diligent to avoid making errors during any transaction.

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9
Q

A buyer’s agent discovers three days before settlement that there is a strong possibility that there is a hole in the roof that the seller attempted to hide from the buyer. What should the Buyer’s Agent NOT do in this situation?
A: Keep The Hole A Secret, As He Needs This Commission Check To Pay His Dues And Renew His License
B: Attempt To Verify There Is A Hole In The Roof By Calling The Listing Agent And Asking A Lot Of Questions
C: Attempt To Verify There Is A Hole In The Roof By Calling The Home Inspector And Asking A Lot Of Questions
D: Disclose In Writing To The Buyer And The Agent’s Broker That There May Possibly Be A Hole In The Roof

A

A: Keep The Hole A Secret, As He Needs This Commission Check To Pay His Dues And Renew His License

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10
Q

The basic premise of the “Hermansen vs Tasulis” case is that:
A: Agents Have A Duty Of Disclosure To Their Own Clients
B: Agents Have A Duty To Disclose Material Facts – Even To Customers
C: Utah Is A Non-Disclosure State
D: The Duty To Disclose Is The Responsibility Of The Seller

A

B: Agents Have A Duty To Disclose Material Facts – Even To Customers

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11
Q

Statutes are often defined as:
A: Written Laws Passed By Legislature
B: Policies And Procedures
C: Rules The Agents Must Follow
D: Documentation Of Regulations

A

A: Written Laws Passed By Legislature

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12
Q

Which of the following statements are true:
A: It Is Crucial To Be Detailed Oriented, Organized, And Communicate Effectively To Avoid Any Errors During A Transaction
B: Always Have Effective Communication For Certain Aspects Only
C: Only Communicate With The Seller’s Agent
D: Only Communicate With The Buyer’s Agent

A

A: It Is Crucial To Be Detailed Oriented, Organized, And Communicate Effectively To Avoid Any Errors During A Transaction

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13
Q

Seller Property Condition Disclosure

A

The seller - not the seller’s agent - fills out this form to convey the seller’s knowledge of the condition of the property. It is not the seller’s right to determine what a buyer gets to know or don’t know.

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13
Q

seller acknowledgements

A

A section of the contract that stipulates that sellers must disclose any defects that are not obvious and that materially affect the value of the property.

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14
Q

The appropriate place for a Seller to disclose that there was a water leak in the upstairs bathroom three years ago is on the:
A: Buyer Due Diligence Checklist
B: Blank Addendum
C: Seller Property Condition Disclosure
D: Real Estate Purchase Contract

A

C: Seller Property Condition Disclosure

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15
Q

Who is responsible for completing the seller property condition disclosure ?
A: Buyer’s Agent
B: Seller’s Agent
C: Seller
D: Buyer

A

C: Seller

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16
Q

Seller’s acknowledgement is a section of the contract that identifies:
A: That Stipulates That Sellers Must Disclose Any Defects That Are Not Obvious And Affect The Value Of The Property
B: That Only Certain Damages Are Disclosed
C: Is An Agreement Between Buyer And Seller
D: Is An Agreement About The Property Defects

A

A: That Stipulates That Sellers Must Disclose Any Defects That Are Not Obvious And Affect The Value Of The Property

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17
Q

Stigmatized Properties are considered:
A: Property With A History That The Sellers Are Hesitant To Disclose, Such As If A Murder Had Occurred In The House
B: Property Only Where Certain Aspects Are Disclosed And Some Are Not
C: Property Where Owners Will Not Provide Background On The House
D: Property Where Agents Will Disclose Information

A

A: Property With A History That The Sellers Are Hesitant To Disclose, Such As If A Murder Had Occurred In The House

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18
Q

A hidden defect in a home that would not be discovered by an ordinary, prudent buyer is called a:
A: Latent Defect
B: Stigmatized Property
C: Material Fact
D: Designated Property

A

A: Latent Defect

19
Q

Despite the fact that the Seller did not disclose the cracked foundation, Agent Max should have known that the foundation of a home he had listed for sale was severely cracked. Max is guilty of:
A: Puffing
B: Negligent Misrepresentation
C: Fraud
D: Implied Agency

A

B: Negligent Misrepresentation

20
Q

stigmatized property

A

Property with a history that the seller is hesitant to disclose, such as if a murder had occurred at the house. You do not have an affirmative duty to disclose this, but if you are asked directly about the issue and you have actual knowledge, you must answer truthfully.

21
Q

An example of a “Stigmatized Property” would be a:
A: House Where A Highly-Publicized Murder Took Place
B: Haunted House
C: Home Where A Woman Committed Suicide
D: All Of The Above

A

D: All Of The Above

22
Q

A house on the corner is believed to be “Dark and Scary” and believed to be haunted. This is an example of a:
A: Latent Defect
B: Stigmatized Property
C: Material Fact
D: Designated Property

A

B: Stigmatized Property

23
Q

latent defect

A

If you become aware of a material defect that would affect a property, you cannot hide it. You must disclose it not only to your client but also to the other side. You do not have to do independent research on this (for example, on unstable soil conditions) but must report issues that you are aware of.

24
Q

negligent misrepresentation

A

The failure to disclose material defects, due to ignorance, which should have been obvious.

25
Q

Three Different Types of Misrepresentations

A
  • Innocent
  • Negligent
  • Fraudulent
26
Q

Despite the fact that the Seller did not disclose the cracked foundation, Agent Max should have known that the foundation of a home he had listed for sale was severely cracked. Max is guilty of:
A: Puffing
B: Negligent Misrepresentation
C: Fraud
D: Implied Agency

A

B: Negligent Misrepresentation

27
Q

What if you become aware of a material defect that would affect a property, you cannot hide it. This is:
A: Latent Defect
B: Disclose In The Statement
C: Communicate It With The Buyer
D: Communicate It With The Seller’s Agent

A

A: Latent Defect

28
Q

What are the three different types of misrepresentations ?
A: Innocent, Negligent, Fraudulent
B: Innocent, Not Knowing, Lack Of Communication
C: Negligent, Fraudulent, Lack Of Communication
D: Innocent, Negligent, Lack Of Facts

A

A: Innocent, Negligent, Fraudulent

29
Q

AIDS disclosure

A

As an exception to the general directive to disclose everything possible, the AIDS status of prior residents of a property is confidential and not to be disclosed to potential buyers.

30
Q

puffing

A

Extravagant claims made by sellers in order
to attract buyers.

31
Q

An agent stating: “This home has the most glorious views of any home in the entire Salt Lake Valley,” is an example of:
A: Puffing
B: Negligent Misrepresentation
C: Fraud
D: Implied Agency

A

A: Puffing

32
Q

Agent Ashley is working on behalf of Buyer Brynne. When Ashley finds Brynne a property that she feels perfectly fits what Brynne is looking for, Ashley works hard to find out everything she can about the home, the neighborhood, the sellers, and their motivation for selling. Ashley’s efforts reflect her fiduciary duty of:
A: Obedience
B: Disclosure
C: Confidentiality
D: Loyalty

A

B: Disclosure

33
Q

Richard Realtor has a home listed. He has a buyer who falls in love with the home and wants to make an offer. Which statement is TRUE about what Richard should do in this situation?
A: Richard Can Write Up The Offer
B: Richard Has A Fiduciary Duty Of Obedience To Write Up The Offer For The Buyer
C: Richard Must Get A Limited Agency Consent Agreement Signed By Both The Seller And The Buyer Prior To Writing The Offer.
D: Richard Should Never Have Showed His Buyer A Home He Had Listed

A

C: Richard Must Get A Limited Agency Consent Agreement Signed By Both The Seller And The Buyer Prior To Writing The Offer.

34
Q

Section 1 of the Seller Property Condition Disclosure specifically addresses:
A: Ownership
B: Roof
C: Water
D: Additions/Remodels

A

A: Ownership

35
Q

Section 3 of the Seller Property Condition Disclosure specifically addresses:
A: Ownership
B: Roof
C: Water
D: Use Of Property

A

D: Use Of Property

36
Q

Section 5 of the Seller Property Condition Disclosure specifically addresses:
A: Water
B: Natural Gas, Electricity
C: Sewer/Septic
D: Additions/Remodels

A

B: Natural Gas, Electricity

37
Q

Section 7 of the Seller Property Condition Disclosure specifically addresses:
A: Sewer/Septic
B: Roof
C: Water
D: Additions/Remodels

A

A: Sewer/Septic

38
Q

Section 9 of the Seller Property Condition Disclosure specifically addresses:
A: Fireplaces/Stoves
B: Equipment
C: Water
D: Additions/Remodels

A

B: Equipment

39
Q

Section 11 of the Seller Property Condition Disclosure specifically addresses:
A: Interior Features
B: Fireplaces
C: Water
D: Additions/Remodels

A

B: Fireplaces

40
Q

Section 13 of the Seller Property Condition Disclosure specifically addresses:
A: Fireplaces/Stoves
B: Equipment
C: Exterior/Exterior Features
D: Additions/Remodels

A

C: Exterior/Exterior Features

41
Q

Section 15 of the Seller Property Condition Disclosure specifically addresses:
A: Termites/Dry Rot/Pests
B: Roof
C: Water
D: Structural Items/Soils

A

D: Structural Items/Soils

42
Q

Section 17 of the Seller Property Condition Disclosure specifically addresses:
A: Electrical
B: Mold
C: Water
D: Additions/Remodels

A

A: Electrical

43
Q

Section 19 of the Seller Property Condition Disclosure specifically addresses:
A: Roof
B: Other Moisture Conditions
C: Mold
D: Structural Items/Soils

A

B: Other Moisture Conditions

44
Q

Stigmatized Properties are:
A: Property With A History That The Sellers Are Hesitant To Disclose, Such As If A Murder Had Occurred In The House
B: Property That Is Not The Best Looking In The Block
C: Properties That Have Been Damaged
D: All Of The Above

A

A: Property With A History That The Sellers Are Hesitant To Disclose, Such As If A Murder Had Occurred In The House

45
Q

Which of the following must be disclosed?
A: Property With A History That The Sellers Are Hesitant To Disclose, Such As If A Murder Had Occurred In The House
B: Properties That Are Not Painted
C: Drainage Issues
D: All Of The Above

A

C: Drainage Issues

Real Estate (52 decks)

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