Disclosures Flashcards
For most of legal history, there was (1)n______ duty on the part of a (2)se______r to disclose (3)an______g.
This rule of law went by the Latin phrase caveat emptor or (4)bu______r (5)be______re.
As far back as 1534, in Fitzherbert’s Book of Husbandrie, Fitzherbert reminds us that if you’re going to buy a horse, you’d better (6)in______ it well because buyer beware!
(1) no
(2) seller
(3) anything
(4) buyer
(5) beware
(6) inspect
For most of legal history, there was no duty on the part of a seller to disclose anything.
This rule of law went by the Latin phrase caveat emptor or ______ ______.
Buyer beware
A few states adhere to 1)bu______r (2)be______re even today.
In some states, such as (3)Al______a, it still appears to be the law of the land for many types of real property transactions, although the basic rules against (4)fr______d may function in part to force (5)di______s.
(1) buyer
(2) beware
(3) Alabama
(4) fraud
(5) disclosures
Around the early (1)19______s, there are some cases in California in which courts are very clearly telling (2)se______rs that they have to disclose (3)mat______l (4)f______ts about the properties they sell, at least when they (5)kn______ things about the property that the (6)bu______r couldn’t (7)ea______y discover.
(1) 1940s
(2) sellers
(3) material
(4) facts
(5) know
(6) buyer
(7) easily
In the case Lingsh v. Savage in 1963, a very clear statement was provided by a California appeals court that puts (1)re______l estate (2)ag______s on the hook for making disclosures of (3)ma______l facts that they know about. The court said that a (4)re______l estate (5)ag______t is under the same duty as a (6)se______r to disclose material information that he or she knows about.
(1) real
(2) agents
(3) material
(4) real
(5) agent
(6) seller
In the case Lingsh v. Savage in 1963, a very clear statement was provided by a California appeals court that puts real (1)es______e agents on the hook for making (2)di______s of material (3)fa______s that they know about. The court said that a real (4)es______e agent is under the (5)s______ me duty as a seller to disclose (6)ma______l information that he or she knows about.
(1) estate
(2) disclosures
(3) facts
(4) estate
(5) same
(6) material
… In this case, a very clear statement was provided by a California appeals court that puts real estate agents on the hook for making disclosures of material facts that they know about. The court said that a real estate agent is under the same duty as a seller to disclose material information that he or she knows about.
(1)L______sh v. (2)Sa______ge - (3)19______
(1) Lingsh v. (2)Savage - (3)1963
It’s fair to say that by the (1)ea______y 1960s, (2)bu______r beware was dead and buried in (3)Ca______.
Since then, and especially since the 1980s, we’ve seen a steady (4)gr______th in the disclosure obligations placed on (5)se______rs and real (6)es______ agents.
(1) early
(2) buyer
(3) California
(4) growth
(5) sellers
(6) estate
It’s fair to say that by the early (1)19______, buyer (2)be______re was dead and buried in California.
Since then, and especially since the (3)19______, we’ve seen a steady growth in the (4)di______re obligations placed on sellers and (5)re______ estate (6)ag______.
(1) 1960s
(2) beware
(3) 1980s
(4) disclosure
(5) real
(6) agents
¿What about the situation where the “as is” addendum is used?
Suppose you’re representing the buyer, and after making the offer, the seller counters with this huge “as is” addendum.
For one, it says that the property is being sold “as is,” and that the buyer waives all disclosures.
If the buyer accepts, would the seller have to disclose anything now?
Yes.
————
Selling the property in “as is” condition says nothing about the seller’s duty to disclose adverse conditions.
All an “as is” provision says is that the seller will not make any repairs even if asked to do so. At least for residential sales, It in no way relieves the seller of the obligation to disclose.
Perhaps, it creates a slightly higher duty for the buyer to be more diligent in investigations.
Selling the property in “as is” condition says (1)no______g about the seller’s duty to (2)di______se adverse conditions.
All an “as is” provision says is that the (3)se______r will not make (4)a______ repairs even if asked to do so. At least for residential sales, it in no way relieves the (5)se______r of the obligation to (6)di______se.
Perhaps, it creates a slightly higher duty for the (7)bu______r to be more diligent in investigations.
(1) nothing
(2) disclose
(3) seller
(4) any
(5) seller
(6) disclose
(7) buyer
Selling the property in “as is” condition says nothing about the (1)se______r’s duty to disclose (2)ad______se conditions.
All an “as is” provision says is that the seller will (3)n______ make any (4)re______s even if asked to do so. At least for residential sales, it in no way relieves the seller of the (5)obl______n to disclose.
Perhaps, it creates a slightly (6)hi______r duty for the buyer to be more diligent in investigations.
(1) seller’s
(2) adverse
(3) not
(4) repairs
(5) obligation
(6) higher
The provision that says that the seller will not make any repairs even if asked to do so is called ______ ______.
As is
A buyer and a seller (1)ca______t agree to (2)wa______e certain seller’s (3)di______re obligations in a consumer transaction.
(1) cannot
(2) waive
(3) disclosure
The agency disclosure form seeks to provide a clear understanding to (1)b______th (2)pr______ls in a (3)tr______n of the potential (4)ag______cy relationships and explains the (5)d______ies of those (6)ag______ts.
(1) both
(2) principals
(3) transaction
(4) agency
(5) duties
(6) agents
The form that seeks to provide a clear understanding to both principals in a transaction of the potential agency relationships and what the duties of those agents are is called the ______ ______.
agency disclosure form
Courts have stated that the (1)ag______cy disclosure form imparts critical information to the (2)pr______ls in a transaction without which they may not comprehend the nature of the agency (3)rel______p, the effect of the dual (4)ag______cy, or whether they should obtain independent advice.
(1) agency
(2) principals
(3) relationship
(4) agency
Courts have stated that the agency (1)di______re form imparts critical information to the principals in a transaction without which they may not comprehend the nature of the (2)ag______cy relationship, the effect of the (3)du______l agency, or whether they should obtain independent (4)ad______ce.
(1) disclosure
(2) agency
(3) dual
(4) advice
What does the agency disclosure form say? Well, it states the (1)du______s of the agents are to their (2)o______n clients and to the (3)cl______ts of the other side.
This is (4)req______d on sale of (5)res______l real property of one to (6)f______r units, and mobile homes and (7)lea______s for a term of over one year of residential one-to-four real property.
(1) duties
(2) own
(3) clients
(4) required
(5) residential
(6) four
(7) leases
What does the agency disclosure form say? Well, it states the duties of the (1)ag______ts are to their own (2)cl______ts and to the clients of the (3)oth______ side.
This is required on (4)sa______ of residential real property of (5)o______ to four units, and (6)mob______ homes and leases for a term of (7)ov______ one year of residential one-to-four real property.
(1) agents
(2) clients
(3) other
(4) sale
(5) one
(6) mobile
(7) over
Duties of the agents found in the agency form are…
A) To the clients of the (1)oth______r side, agents have the duties of honesty, (2)f______ dealing, and (3)g______ faith;
B) diligent exercise of (4)rea______e skill and (5)ca______ in the performance of their duties; and,
C) the duty to disclose all known (6)mat______l facts that are otherwise (7)dif______t for the buyer to find out.
(1) other
(2) fair
(3) good
(4) reasonable
(5) care
(6) material
(7) difficult
Duties of the agents found in the agency form are…
A) To the clients of the other side, agents have the duties of (1)hon______, fair (2)dea______g, and good (3)fa______;
B) diligent exercise of reasonable (4)sk______ and care in the performance of their duties; and,
C) the duty to (5)dis______ all known material (6)fa______ that are otherwise difficult for the (7)bu______r to find out.
(1) honesty
(2) dealing
(3) faith
(4) skill
(5) disclose
(6) facts
(7) buyer
The timing of the agency disclosure is critical and (1)dif______t from the timing of the other disclosures.
The presentation and (2)acc______e of the statutory form of agency (3)dis______e before the execution of the (4)li______g is a material (5)req______t that cannot be remedied by a subsequent (6)dis______e.
If the broker fails to deliver the Agency (7)Dis______e form, the listing (8)ag______nt might not be enforceable and the broker might not be entitled to a commission (Huijers v. DeMarrais [1992] 11 Cal. App.4th 676).
(1) different
(2) acceptance
(3) disclosure
(4) listing
(5) requirement
(6) disclosure
(7) Disclosure
(8) agreement
