Practice Quizzes 2 Flashcards
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.
True
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.
two years
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).
False
An automatic reverse safety device is required for all automatic garage doors installed after:
January 1, 1991.
A separate form is required to be filled out if the water heater is marked as being in compliance on a TDS form.
False
The use of a home inspection report (HIR) does not relieve a seller’s agent of their duty to visually inspect the property.
True
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.
four years
A home inspector may not pay a referral fee to a licensee for the referral of any home inspection business
True
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:
on opening escrow
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.
True
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.
two miles
A flood zone designated with the letter(s) ___ is subject to mandatory flood insurance requirements.
A, V
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.
True
Section I items on a Structural Pest Control report (SPC) are conditions which will likely lead to infestation.
False
Areas that do not need to be inspected during an SPC inspection include:
attics with inadequate crawl space..
floors covered by carpet.
A federally mandated Environmental Hazards Disclosure form is used to give a buyer notice of environmental hazards on or near the listed property.
False
A seller is required to investigate or have a survey conducted to determine the existence of asbestos on the property.
False
A seller has a duty to investigate whether their property contains toxic mold.
False
Lead-based paint was banned by the Federal Consumer Product Safety Commission in:
1978
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.
20%
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.
True
An HOA is obligated to provide the documents requested by a seller within ______ of the seller’s written request
10 days
On one-to-four residential dwellings, a seller’s agent has an affirmative duty to disclose their knowledge of possible tax consequences.
False
To avoid misleading a client, a broker or agent is advised to:
All of the above
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.
False
On direct inquiry by a buyer or their agent, a seller’s agent must disclose their knowledge of any deaths on the property.
True
Deposits into an impound account are considered operating expenses.
False
After receiving an Annual Property Operating Data sheet (APOD) from the seller’s agent, the buyer is advised to:
get quotes on hazard insurance premiums and taxes..
confirm utility payments..
review tenant files.
