UNIT 7 - DISCLOSURES IN REAL ESTATE

Question 1

STATUTORY DISCLOSURES

Answer 1

THOSE THAT ARE REQUIRED BY STATUTE OR LAW.

Question 2

Easton v. Strassburger

Answer 2

the court ruled that a broker has the duty to inspect a property and disclose any material facts affecting its value. a broker is required to uncover any reasonably discoverable problems and tell all interested parties.

Question 3

Real Estate Transfer Disclosure Statement (TDS)

Answer 3

statutory disclosure about the condition of the property.

Question 4

patent

Answer 4

observable

Question 5

latent

Answer 5

hidden

Question 6

Local Option Real Estate Transfer Disclosure Statement (LORETDS)

Answer 6

optional disclosure form that may be required due to some local condition. e.g. local ordinances on occupancy, zoning and use, building code compliance, fire, health and safety code regulations, and land subdivision descriptions.

Question 7

Supplemental Statutory and Contractual Disclosures (SSD)

Answer 7

lists many of the statutory disclosures that sellers are required to give to buyers

Question 8

stigmatized property

Answer 8

property that has been psychologically impacted y an event which occurred, or was suspected to have occured, on the property. e.g. murders, suicides, criminal activity

Question 9

Comprehensive loss underwriting exchange (CLUE report)

Answer 9

report of insurance claims that were made on the property within the past five years

Question 10

Natural Hazard Disclosure Statement (NHD)

Answer 10

hazards may limit their ability to develop the real property, to obtain insurance, or to receive assistance after a disaster

Question 11

mello-roos district

Answer 11

an area where a special assessment is imposed on those real property owners within a community facilities district.

Question 12

notice of supplemental property tax bill (C.A.R. form SPT)

Answer 12

the county assessors revalue real property at the time the ownership of the property changes. therefore, the buyer may receive one or two supplemental tax bills, depending on when escrow closes.

Question 13

Foreign investment in real property tax act (FIRPTA)

Answer 13

buyers of real property withhold and send to the irs a percentage of the gross sales price, if the seller of the real property is a foreign person.

Question 14

retrofit standards

Answer 14

installing operable smoke detectors, bracing water heaters, and notifying buyers whether carbon monoxide detectors are installed

Question 15

Interstate land sales full disclosure act (ISLA)

Answer 15

regulates land sales when there are two or more states involved, involving 25+ lots.

Question 16

target housing

Answer 16

residential housing built before 1978, which lead-hazard information brochure and disclosure form must be provided.

Question 17

public report

Answer 17

a document disclosing all important facts about the property, its marketing and the financing of the subdivision