Mandated Discosrue

Question 1

Seller Property Disclosure

Answer 1

• Maybe in a form or written list
• Discloses issues that may influence a buyer decisions
• sellers complete disclosure form not the broker
• Sellers and brokers must disclose all material defect, visible and un-visible

Question 2

Material Defects

Answer 2

Revealed to the party the agent represents and then to broker/salesperson and parties of transaction
Stigmatized properties req. determined by state

Broker is no responsible for discovering latten (hidden) facts that the seller did not disclose

-Licensee who withholds information may be guilty of misrep or fraud, contract can be voidable

All environmental factor outside property, such as neighborhood safety, is considered a material defect b/c impacts value of property

Question 3

Offers to client

Answer 3

Must be presented to client unless otherwise specified

Liting broker must follow the sellers direction to prevent harm to others

Question 4

Buyer Material defects

Answer 4

-Ability to get a loan

buyers an buyer’s agent have to disclose if the buyer is unable to get a loan

Question 5

Home Warranty Programs

Answer 5

coverage of major appliances
feature a deductble and may exclude some itms
terms an length of warranty by company

Question 6

New house Construction warranties

Answer 6

Covers roof or other structural fails after closing
does not cover structural damage from outside forces
failur of workmanship and material - merchantability an habitability