Real Estate Principles: Q4/Chp 13-17

Question 1

1) A property defect which would likely affect the price the buyer would be willing to pay is referred to as:
A) a material fact
B) circumstantial evidence
C) A matter of opinion
D) an "as is" condition

Answer 1

A) a material fact

Question 2

2) The broker analyzes the suitability of an income property which is for sale by preparing a(n) ____________ and reviewing it with the buyer.
A) Profit and Loss Statement
B) Balance Sheet
C) Annual Property Operating Data Sheet (APOD)
D) Investment Circular

Answer 2

C) Annual Property Operating Data Sheet (APOD)

Question 3

3) A seller's broker and their agents have a \_\_\_\_\_\_\_\_\_\_\_, owed solely to the seller who has employed the broker, to diligently market the listed property for sale.
A) non-fiduciary general duty
B) fiduciary agency duty
C) implied agency duty
D) limited general duty

Answer 3

B) fiduciary agency duty

Question 4

4) A seller of a one-to-four unit residential property needs to complete and deliver to a prospective buyer a statutory form called a(n)
A) Transfer Disclosure Statement (TDS)
B) Condition of Neighborhood Addendum
C) Agency Law Disclosure
D) Oil Based Paint Disclosure (OBP)

Answer 4

A) Transfer Disclosure Statement (TDS)

Question 5

5) Radon gas concentrations in enclosed, unventilated spaces located within a building where the underlying rock contains uranium is in the example of a(n)
A) environmental hazard located off the property
B) environmental hazard located on a property
C) natural hazard located off a property
D) seismic hazard located on a property

Answer 5

B) Environmental hazard located on a property

Question 6

6) Environmental hazards not itemized in the Transfer Disclosure Statement (TDS) include:
A) hazardous construction materials and waste
B) window security bars and inoperable release mechanisms
C) environmental noise
D) whether the property is located in a special flood hazard area

Answer 6

D) Whether the property is located in a special flood hazard area

Question 7

7) Natural hazards such as ___________ come with the location of a parcel of a real estate, not with the man-made aspects of the property.
A) very high fire hazard severity zones
B) high local crime rates
C) security bars which interfere with an occupant’s ability to exit a room
D) asbestos-containing building materials

Answer 7

A) Very high fire hazard severity sounds

Question 8

8) To unify and streamline the disclosure made by a seller and their agent about natural hazards affecting a property, the California legislature created a statutory form called the:
A) Transfer Disclosure Statement (TDS)
B) Natural Hazard Disclosure Statement (NHD)
C) Conflict of Interest Disclosure
D) Mortgage Settlement Statement

Answer 8

B) Natural Hazard Disclosure

Question 9

9) The Natural Hazard Disclosure Statement (NHD) handed to a prospective buyer does not disclose:
A) whether the property is located in an area of potential flooding
B) whether the property is situated in a very high fire hazard severity zone
C) environmental hazards and physical deficiencies in the soil or property improvements
D) The fact the property was built in a seismic hazard zone

Answer 9

C) environmental hazards and physical deficiencies in the soil of property improvements

Question 10

10) The Natural Hazard Disclosure Statement (NHD) requires the seller’s agent to disclose to a prospective buyer whether they have knowledge the property:
A) has a roof greater than three years old
B) is located in a fault zone
C) is located in an area with a high crime rate
D) has an outdoor pool

Answer 10

B) is located in a fault zone