Unit 1: Standards of Conduct

Question 1

What are the 6 prohibited actions for all licensees?

Answer 1

1. Give false statement to Commissioner
2. Act as a Dual Agent without signed disclosure/consent
3. Engage in price-fixing
4. Pay commissions or gifts of value to unlicensed people
5. Include a holdover clause
6. Include an override clause that exceeds 6 months

Question 2

What are all licensees obligated to disclose?

Answer 2

1. Licensed status if it’s their own property
2. If they are representing a relative or business associate
3. Present or future interest in a property
4. All material facts even if buyer agrees to “as is”

Question 3

T/F Meth labs do not need to be disclose.

Answer 3

False

Question 4

In an estate sale or lender acquired foreclosure, who can be depended on to give a physical property disclosure?

Answer 4

Qualified home inspector

Question 5

What stigmatized property issues do not need to be disclosed because they are not material fact?

Answer 5

• HIV or AIDS
• Suicide, accidental death, natural death, murder
• Paranormal activity
• Located in a neighborhood containing an adult home, community-based residential facility, or nursing home

Question 6

T/F If the seller provides written notice on how to obtain information about registered sex offenders, the seller does not need to disclose any information.

Answer 6

True

Question 7

Within how many years can a buyer bring civil action against a seller for undisclosed information?

Answer 7

2 years

Question 8

How many hours do licensees have to submit a protect list?

Answer 8

72 hours