Real Estate Disclosures ( Chapter 4) Flashcards
Material Fact
something that affects the ‘value’ of the property. Includes items like (roof leas, broken appliances, hole in a wall)
What is a Real Estate Transfer Disclosure Statement
TDS transfer disclosure statement - details property repairs, condition of appliances, improvements added any harmful substances.
3 parts:
part 1: used by seller to disclose previous inspection or eports on the property
Part 2: seller identify items property contains; damaged or not;
In a Transfer Disclosure Statement (where applicable by law), both the buyer’s and seller’s brokers must conduct what type of property inspection?
Visual Inspection
Of accessible areas
Reasonably Diligent
A Transfer Disclosure Statement is required for the sale of
most residential property consisting of 1-to-4 units.
A real estate agent must visually inspect
most of the time, a two-unit residential property that’s listed for sale
If the owner has re-painted interior walls, this may trigger a disclosure requirement because
there may be lead-based paint beneath
The neighbors of an agent’s listing property mentioned that they’ve heard the property is haunted and this is the reason its being put up for sale. Using his/her common sense and prudent caution, the agent will likely:
- ask the owner about it
- advise the owner that purported hauntings must be disclosed if they are known in the community
- discuss with his/her broker about it
The Natural Hazards Disclosure Statement addresses all of the following except
ground or soil erosion
A Transfer Disclosure Statement is not required of a seller who is:
selling a commercial store like a neighborhood grocery store
a bank selling a home it recently foreclosed on
a seller of a 6 unit residential property
All of the following should be disclosed except:
Personal medical (AIDS) information.
Death Obligations
the seller died in the house within the last 3 years
that a tenant-occupant died in the house in the house in the last 3 years
the bedroom in which the seller died does not meet local building codes
Which of the following conditions should probably (be prudent!) be disclosed!
the fact that the home is on a truck route
a cracked foundation
a leak in the roof
A sales agent tells a home shopper not to worry about the musty smell in the basement because “all the basements in this area have about the same odor, it is perfectly normal and comes with the territory.” If indeed many or all of the local house basements smell about the same, then:
the agent should still include in the disclosure statements the possible presence of mold or other material issue/cause
A listing house does not have any smoke alarm(s). The listing agent should:
advise the owner that all California properties must have at least one smoke alarm, and disclose to home-shoppers the lack of same if the owner doesn’t remedy the situation
A single family house sold in bankruptcy requires:
no Transfer Disclosure Statement whatsoever
