Practice Quizzes 2

Question 1

The use of an “as-is” clause in a purchase agreement to make the buyer waive delivery of a Transfer Disclosure Statement (TDS) is void as it is against public policy.

Answer 1

True

Question 2

A buyer has ________ from the close of escrow to recover losses caused by the negligent failure of the seller’s agent to disclose a property’s observable and known material defects.

Answer 2

two years

Question 3

A seller’s agent is exempt from conducting a visual inspection of a one-to-four unit residential property when the seller is exempt from using the Transfer Disclosure Statement (TDS).

Answer 3

False

Question 4

An automatic reverse safety device is required for all automatic garage doors installed after:

Answer 4

January 1, 1991.

Question 5

A separate form is required to be filled out if the water heater is marked as being in compliance on a TDS form.

Answer 5

False

Question 6

The use of a home inspection report (HIR) does not relieve a seller’s agent of their duty to visually inspect the property.

Answer 6

True

Question 7

If a buyer discovers an error in an HIR which affects the property’s value or desirability, they have ________ after the date of the inspection to file a legal action to recover money losses.

Answer 7

four years

Question 8

A home inspector may not pay a referral fee to a licensee for the referral of any home inspection business

Answer 8

True

Question 9

When a seller has refused to authorize the preparation of an HIR prior to entering into a purchase agreement, the buyer is advised to order one:

Answer 9

on opening escrow

Question 10

A buyer is able to enforce a reduction of the purchase price before closing for defects undisclosed to the buyer if the purchase agreement contains a price adjustment provision.

Answer 10

True

Question 11

A Natural Hazard Disclosure (NHD) needs to disclose whether the listed property is located within _________ of a proposed airport when the NHD is prepared by an NHD expert.

Answer 11

two miles

Question 12

A flood zone designated with the letter(s) ___ is subject to mandatory flood insurance requirements.

Answer 12

A, V

Question 13

An NHD requires a seller and the seller’s agent to disclose to a buyer whether they have any knowledge that the property is in an earthquake fault zone.

Answer 13

True

Question 14

Section I items on a Structural Pest Control report (SPC) are conditions which will likely lead to infestation.

Answer 14

False

Question 15

Areas that do not need to be inspected during an SPC inspection include:

Answer 15

attics with inadequate crawl space..

floors covered by carpet.

Question 16

A federally mandated Environmental Hazards Disclosure form is used to give a buyer notice of environmental hazards on or near the listed property.

Answer 16

False

Question 17

A seller is required to investigate or have a survey conducted to determine the existence of asbestos on the property.

Answer 17

False

Question 18

A seller has a duty to investigate whether their property contains toxic mold.

Answer 18

False

Question 19

Lead-based paint was banned by the Federal Consumer Product Safety Commission in:

Answer 19

1978

Question 20

Annual increases in the dollar amount levied as regular assessments by a homeowners’ association (HOA) are limited to a _____ increase over the prior year’s assessments.

Answer 20

20%

Question 21

A buyer is advised to request a list of defects from an HOA to get a better idea of the probability of regular and special assessment increases in the near future.

Answer 21

True

Question 22

An HOA is obligated to provide the documents requested by a seller within ______ of the seller’s written request

Answer 22

10 days

Question 23

On one-to-four residential dwellings, a seller’s agent has an affirmative duty to disclose their knowledge of possible tax consequences.

Answer 23

False

Question 24

To avoid misleading a client, a broker or agent is advised to:

Answer 24

All of the above

Question 25

A seller’s agent has an affirmative duty to voluntarily disclose to a buyer information regarding a death on the property which occurred more than three years prior to the purchase offer.

Answer 25

False

Question 26

On direct inquiry by a buyer or their agent, a seller’s agent must disclose their knowledge of any deaths on the property.

Answer 26

True

Question 27

Deposits into an impound account are considered operating expenses.

Answer 27

False

Question 28

After receiving an Annual Property Operating Data sheet (APOD) from the seller’s agent, the buyer is advised to:

Answer 28

get quotes on hazard insurance premiums and taxes..
confirm utility payments..
review tenant files.