Real Estate Practice: Q 5/Chp 24-27

Question 1

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.
True
False

Answer 1

True (pg 229)

Question 2

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.
a. one month
b. six months
c. one year
d. two years

Answer 2

d. two years (pg 231)

Question 3

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).
True
False

Answer 3

False (pg 233)

Question 4

4) An automatic reverse safety device is required for all automatic garage doors installed after:
a. January 1, 1990.
b. January 1, 1991.
c. January 1, 1992.
d. January 1, 1993.

Answer 4

b. January 1, 1991 (pg 237)

Question 5

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

Answer 5

False (pg 238)

Question 6

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

Answer 6

True (pg 244)

Question 7

7) If a buyer discovers an error in a 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.
a. one year
b. three years
c. four years
d. five years

Answer 7

c. four years

Question 8

8) A home inspector may not pay a referral fee to a licensee for the referral of any home inspection business.
True
False

Answer 8

True (pg 249)

Question 9

9) When a seller has refused to authorize the preparation of a HIR prior to entering into a purchase agreement, the buyer is advised to order one:
a. on entering into a purchase agreement.
b. after the expiration of any contingent cancellation period.
c. after escrow has closed.
d. on opening escrow.

Answer 9

d. on opening escrow (pg 254)

Question 10

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.
True
False

Answer 10

True (pg 256)