SU # 14__Material Defects, Disclosures & Misrepresentation Flashcards
What is a material fact?
A material fact is some piece of information that is so important that the parties to the negotiations might change their mind about completing the transaction if they had that information.
When counseling the sellers regarding the Property Disclosure Report, what is a good question the licensee can suggest the sellers ask themselves?
“Would I want to know about this if I was buying the property?”
When are properties considered stigmatized?
- violent crime or death occurred on the property,
- illegal drug manufacturing,
- gang-related activities have taken place on the property,
- suicide occurred there
- rumor that the property is haunted.
What are state law enforcement agencies required to do under Megan’s Law?
make information to the public available regarding sex offenders in their areas.
Agents need to remember, “stigmatized” conditions are not material and
are undiscoverable.
therefore must be disclosed.
are deemed latent ambiguities.
are not required to be disclosed.
are not required to be disclosed.
According to various sections of the Administrative Code, if Broker Bob is showing property that was the site of an act that had no effect on the physical condition of the property or its environment Broker Bob
Is required to disclose the act.
Is not required to disclose the act.
Disclose whatever the seller advises.
Should complete and deliver a Residential Real Property Disclosure Form to the buyer.
Is not required to disclose the act.
A property may have hidden defects undiscoverable by ordinary inspection that jeopardizes structural integrity or an occupant’s safety, these items are defined as
Latent defects
Material defects
Stigmatized defects
Latent misalignment
Latent defects
The Deceptive Trade Practices Act (DTPA) can come to bear on a real estate licensee when
an agent lies to get someone to put in a contract on a property.
a broker advertises a property on the internet.
an agent holds an open house for another agent.
an agent gives a client a list of home inspectors to choose from.
an agent lies to get someone to put in a contract on a property.
Broker Bob is showing a property that may be considered a stigmatized property. If in doubt Broker Bob should
Disclose whatever the seller advises.
Not show the property under any circumstance.
Seek legal counsel regarding the disclosure of the stigmatized property.
Contact the local HUD office for advice
Seek legal counsel regarding the disclosure of the stigmatized property.
Information about a property that has a significant bearing on a buyers decision to purchase that property is a
Defect
Latent fact
Latent misalignment
Material fact
Material fact
