100. A broker must NOT disclose to prospective buyer:
a. about structural defects
b. that zoning makes the present usage non-conforming
c. that he has seen evidence of termites
d. that the owner will accept less than the listing price
100. D When the broker represents the owner of the property objectives of the seller should not be disclosed.
101. A real estate salesperson advised a prospective buyer that the property the buyer was considering was scheduled for annexation into the city limits. This disclosure constituted which of the following:
a. disloyalty to principal
b. misrepresentation
c
101. C The annexation in to the city is a material fact that could affect the consideration to be given and therefore must be disclosed.
102. Prior to settlement, the broker discovers dry rot in the floor joists. The broker should:
a. inform the seller only
b. inform the seller and the buyer
c. refund the purchaser's deposit
d. inform no one
102. B All parties to the contract must be informed of any material defect; even if it discovered after the contract has been formed.
103. If a parcel of real estate is near a toxic waste site the agent would be obligated to:
a. conduct a phase one audit
b. do nothing, if he is not the buyer's agent
c. disclose the fact
d. disclose only if it is a superfund site.
103. C Environmental hazards are a material fact that must be disclosed to all parties to the transaction.
104. Sue listed her house with a broker and told the broker that the house had termite infestation and some structural damage, but the repairs had just been completed. The broker is obligated to:
a. tell her not to tell other brokers showing the property
104. C Termite infestation and structural damage even if it has been repaired should be disclosed.
105. A broker for the seller is required to disclose to a potential buyer that:
a. the seller doesn't like the house
b. the seller is moving out of state
c. the seller is in poor health
d. a felony occurred on the property
105. A The broker is required to inform the buyer about defects related to the property, which include the fact that the seller no longer likes the property. Normally the fact that a felony took place on the property would need to be disclosed, but a Neva
106. During contract negotiations, a broker for the seller assures the purchaser that the property is appropriate for multi-family use. Prior to closing, the purchaser learns that zoning regulations prohibit such use. By law, this contract is:
a. voidable
106. B The broker's statement about the zoning is a misrepresentation, which makes the agreement a voidable contract at the option of the buyer.
107. Which of the following may a broker disclose to a prospective purchaser without permission?
a. why the seller must sell now
b. why the property is not desirable
c. what the owner actually will accept
d. what the owner originally paid
107. B Why the property is not desirable means to disclose any material fact that would adversely affect the consideration to be given by the prospective purchaser, which must be disclosed by the agent. The other items are considered confidential informat
108. A listing salesperson should do all of the following EXCEPT:
a. advise prospective buyers of the lowest price the seller will accept
b. verify factual information about the property provided by the seller
c. advise the seller that known property defe
108. A When the broker represents the owner of the property objectives of the seller should not be disclosed.
109. The owner tells the broker that there is a sewer on the property. A buyer purchases the property and discovers there is only a septic tank on the property. Who is liable?
a. the seller
b. the broker
c. the appraiser
d. there is no liability attaching
109. B The broker could be held liable under the theory that the broker is a professional and should investigate the accuracy of the seller's representation.
110. A colorless, odorless gas which is a hazard to health and is found in homes
throughout the United States is:
a. asbestos
b. radon
c. urea formaldehyde
d. trichloroethylene
110. B Radon is a radioactive, colorless, odorless gas, which is produced when certain natural radioactive minerals break down or decay.
111. A real estate salesperson working for a listing broker must always disclose:
a. all facts to the seller only
b. all material facts to the seller only
c. all facts to both the seller and the buyer
d. all material facts to both the seller and the buyer
111. C The principal and the principal's agent have a duty to disclose known facts, which are not known to the other parties to the transaction and are not easily observable that materially affect the value of the property.
112. If an inspection indicates that a building contains asbestos, the results of the inspection must be disclosed to the:
a. seller only
b. buyer only
c. seller and any potential buyer
d. person requesting the inspection only
112. C A building containing asbestos is a material fact and must be disclosed to the seller and to any potential buyer.
113. What form is used to provide the written disclosure by the seller of a residential
property of any and all known material conditions and aspects of the property?
a. Consent to Act
b. Duties Owed
c. Seller's Real Property Disclosure Form
d. Agency Con
113. C The proper disclosure by the seller of material facts is to be made in writing in a timely manner and in a format prescribed by the Real Estate Division; the Seller's Real Property Disclosure Form.
114. The Seller's Real Property Disclosure Form must be completed by the seller at least:
a. 10 days before escrow close
b. 14 days before escrow close
c. within 10 days of contract signing
d. within 14 days of contract signing
114. A The Seller's Real Property Disclosure Form must be completed by the seller at least 10 days before the escrow close.
115. A seller's failure to properly and honestly complete the Seller's Real Property disclosure Form allows a buyer all of the following, EXCEPT:
a. litigate and be entitled to treble damages
b. entitled to court and legal fees
c. have up to two years fro
115. D The buyer can only collect from the Recovery fund after obtaining a judgment against the seller and then only if the damages were caused by the actions of the licensee.