Latent Defects

Question 1

The ___ has a duty to disclose any known latent defects that threaten structural soundness or personal safety.

Answer 1

seller

Question 2

If a seller fails to reveal known latent defects, buyers have been able to either ___ the sales contract or receive ___.

Answer 2

Rescind the sales contract
Receive monetary damages

Question 3

If a seller neglects to reveal violations of zoning or building codes, who is the court most likely to decide in the favor of?

Answer 3

the buyer

Question 4

Who’s responsibility is it to disclose any material facts that may affect the property’s value or desirability?

Answer 4

the licensee

Question 5

If a seller was not aware of any known material facts & failed to disclose them, but then they are later discovered by the licensee, does the licensee have an obligation to disclose this to prospective buyers?

Answer 5

yes

Question 6

If a licensee should have known about a substantial defect and it later on is detected by the buyer, who would be liable for any damages that resulted from the defect?

Answer 6

the licensee

Question 7

A listing broker in Illinois was aware that a house was built on a landfill. Several days after the house was listed, another broker in the same real estate office noticed that the living room floor was uneven and sagging in places. Would it be an acceptable solution for the brokers to place rugs over the bad spots and hope that buyers won’t check underneath?

Answer 7

No

Question 8

If a seller refuses to disclose a problem that is discovered by an agent representing the seller, what should the agent do?

Answer 8

Refuse the listing