Property Conditions and Disclosures

Question 1

Which level of radon is considered the maximum acceptable level?

A: 10
B: 8
C: 6
D: 4

Answer 1

D: 4

Question 2

Which document is required by RESPA to illustrate the costs of closing the real estate transaction?

A: Loan Estimate
B: Property Appraisal
C: Closing Statement
D: Disclosure of the APR

Answer 2

C: Closing Statement

Question 3

Which term best describes reducing the degree or intensity of, or eliminating pollution?

A: Activator
B: Absorption
C: Aeration
D: Abatement

Answer 3

D: Abatement

Question 4

The disclosure of the relationship in which one party (e.g., agent) acts for or represents another (e.g., principal) under the authority of the latter is known as

A: customer representation
B: actual notice
C: agency disclosure
D: abatement

Answer 4

C: agency disclosure

Question 5

A seller completes a property disclosure form and states that there are no conditions in the property in need of repair. However, the listing sales agent recognizes the early signs of termite infestation. The listing sales agent should

A: not tell the buyer
B: Disclose this condition as this is a latent defect
C: disclose this condition as this is a patent defect
D: tell the seller to amend the property disclosure statement

Answer 5

C: disclose this condition as this is a patent defect

Question 6

Which of the following could be made available to a buyer to indicate that a property owner had authorization to make any alterations or additions to the property and that work was done to applicable standards?

A: Receipts and work orders from contractors who performed the work
B: A building permit and certificate of occupancy issued by the municipal government
C: Plans and specifications prepared by a registered architect
D: A home inspection report prepared by a professional home inspector

Answer 6

B: A building permit and certificate of occupancy issued by the municipal government

Question 7

All of the following may be places where asbestos could be found in a single family home that is fifty years old except

A: in insulation sprayed around pipes and ducts or in attic isulation
B: recently purchased treated lumber for use in constructing a deck
C: vinyl flooring material installed when the home was built
D: in exterior siding, shingles or roofing

Answer 7

B: recently purchased treated lumber for use in constructing a deck