Glossary Ch. 13-17

Question 1

A mandatory disclosure prepared by a seller and given to prospective buyers setting forth any property defects known or suspected to exist by the seller, generically called a consition of property disclosure.

Answer 1

Transfer Disclosure Statement (TDS)

Question 2

A fact that, if known, might cause a prudent buyer or seller of real estate to make a different decision regarding what price to offer or demand for a property or whether to remain in a contract or cancel it.

Answer 2

Material fact

Question 3

An unenforceable provision stating the buyer accepts the property without a full disclosure of known conditions. Properties are sold “as-disclosed” never “as-is”.

Answer 3

As-is clause

Question 4

A provision in an agreement calling for the further approval of an event or activity by the seller, buyer or third party as a condition for further performance or the cancellation of the transaction by a person benefitting from the provision.

Answer 4

Further-approval contigency

Question 5

The right of the government to take private property for public use on payment to the owner of the property’s fair market value.

Answer 5

Eminent domain

Question 6

A worksheet used when gathering income and expenses on the operation of an income producing property, to analyze its suitability for investment.

Answer 6

Annual Property Operating Data Sheet (APOD)

Question 7

That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over their principal by the slightest misrepresentation, concealment, duress or undue influence.

Answer 7

Fiduciary duty

Question 8

A mandatory disclosure prepared by a seller and giver to prospective buyers setting forth any property defects known or suspected to exist by the seller, generically called a condition of property disclosure.

Answer 8

Transfer Disclosure Statement (TDS)

Question 9

The duty a licensee owes to non-client individuals to act honestly and in good faith with up-front disclosures of known conditions which adversely affects a property’s value.

Answer 9

General duty

Question 10

Encumberances such as liens, conditions, covenants and restrictions and easements which affect title to property.

Answer 10

Title conditions

Question 11

Noxious or annoying man-made conditions which are injurious to health or interfere with an individuals sensitivities.

Answer 11

Environmental hazards

Question 12

A substace which causes cancer in human beings.

Answer 12

Carcinogen

Question 13

Any products, materials or substances which are toxic, corrosive, ignitable, or reactive.

Answer 13

Hazardous waste

Question 14

Risks to life and property which exist in nature die to a property’s location.

Answer 14

Natural hazards

Question 15

A report provided by a local agency or NHD vendor and used by sellers and seller’s agents to disclose natural hazards which exist on a property held out for sale.

Answer 15

Natural Hazard Disclosure (NHD) Statement

Question 16

The cancellation of a transaction before escrow has closed or a lease has ended.

Answer 16

Termination

Question 17

The return of funds and documents on a rescission of a purchase agreement or transaction sufficient to place all the parties in the position they held before entering into the agreement or closing the transaciton.

Answer 17

Restoration

Question 18

Maps which identify earthquake fault areas available from the State Mining and Geology Board and the city or county planning department.

Answer 18

Alquist-Priolo Maps