Podcast
Questions and Answers
The actions of the seller and broker represent all of the following EXCEPT:
The actions of the seller and broker represent all of the following EXCEPT:
- Fraud
- Gross misrepresentation
- Unintentional misrepresentation (correct)
- A violation of the license law
A broker representing the buyer must:
A broker representing the buyer must:
- Withhold financial information about the buyer
- Not share the buyer's confidential information with the seller (correct)
- Tell the seller the buyer's ethnicity
- Also represent the seller
A broker representing the seller must:
A broker representing the seller must:
- Tell the buyer about the seller's motivation
- Help the buyer determine an offer
- Work with the buyer to locate other property
- Avoid giving false information to a buyer (correct)
A builder's new home warranty would cover all of the following EXCEPT:
A builder's new home warranty would cover all of the following EXCEPT:
Is the listing broker liable to the buyer for estimating the property line?
Is the listing broker liable to the buyer for estimating the property line?
Who is responsible for the buyer's actions after not being able to produce proof of cash?
Who is responsible for the buyer's actions after not being able to produce proof of cash?
What should a buyer's agent do upon overhearing the seller may accept a lower price?
What should a buyer's agent do upon overhearing the seller may accept a lower price?
A new home warranty would NOT cover which of the following?
A new home warranty would NOT cover which of the following?
What should the listing agent do after learning of a hidden defect in a property under contract?
What should the listing agent do after learning of a hidden defect in a property under contract?
What must a property manager representing the landlord do?
What must a property manager representing the landlord do?
What is the next step if a property under contract was affected by a hail storm?
What is the next step if a property under contract was affected by a hail storm?
Did the listing agent break her fiduciary duties by sharing the seller's willingness to take less?
Did the listing agent break her fiduciary duties by sharing the seller's willingness to take less?
A buyer's agent may negotiate for a relative or friend:
A buyer's agent may negotiate for a relative or friend:
Adding a home warranty to the purchase contract can do all of the following EXCEPT:
Adding a home warranty to the purchase contract can do all of the following EXCEPT:
Which statement concerning the listing agent's responsibility to the seller is true EXCEPT:
Which statement concerning the listing agent's responsibility to the seller is true EXCEPT:
If the seller provides inaccurate material defects information and the listing agent passes it on, who is liable?
If the seller provides inaccurate material defects information and the listing agent passes it on, who is liable?
Nonmaterial information that could damage the seller's bargaining position can be disclosed only:
Nonmaterial information that could damage the seller's bargaining position can be disclosed only:
The broker working for the buyer must tell the seller:
The broker working for the buyer must tell the seller:
The listing agent working for the seller must tell the buyer of any:
The listing agent working for the seller must tell the buyer of any:
The property manager must notify the potential tenant of:
The property manager must notify the potential tenant of:
What hidden defects should be disclosed in the Seller's Property Disclosure statement?
What hidden defects should be disclosed in the Seller's Property Disclosure statement?
When a property is sold 'as-is,' the salesperson is responsible for disclosing to the buyer:
When a property is sold 'as-is,' the salesperson is responsible for disclosing to the buyer:
When a property is sold 'as-is,' the seller is:
When a property is sold 'as-is,' the seller is:
When a property is sold 'as-is,' the seller must disclose:
When a property is sold 'as-is,' the seller must disclose:
When a property is sold 'as-is,' who is liable for disclosing known defects?
When a property is sold 'as-is,' who is liable for disclosing known defects?
When is the buyer legally obligated to provide true and accurate information related to her ability to meet the terms of the purchase contract?
When is the buyer legally obligated to provide true and accurate information related to her ability to meet the terms of the purchase contract?
When the seller sold her home, she was unaware that the house was infested with termites. What was the seller guilty of?
When the seller sold her home, she was unaware that the house was infested with termites. What was the seller guilty of?
Which of the following are most likely to lead to a real estate license being revoked?
Which of the following are most likely to lead to a real estate license being revoked?
Which of the following is not a material fact that would require disclosure?
Which of the following is not a material fact that would require disclosure?
Study Notes
Seller and Broker Responsibilities
- Concealing known material defects, like a leaking roof, constitutes fraud and gross misrepresentation.
- Sellers or brokers must not share confidential buyer information with the seller.
- Brokers representing sellers must disclose all known material facts but can maintain the confidentiality of seller motivations.
Home Warranty Details
- Builder's warranties do not cover structural damage from natural disasters, such as flooding.
- New home warranties are only available for newly constructed homes, not resale properties.
- Resale home warranties can reduce seller and broker liability for post-sale failures.
Broker Obligations in Transactions
- Brokers should avoid providing inaccurate estimates, such as property boundary locations, and instead recommend professional surveys.
- Brokers must disclose material facts to all parties, including hidden defects discovered post-listing.
- Brokers representing buyers are obligated to share advantageous information learned during negotiations confidentially with their clients.
Liability in Transactions
- Buyers are solely responsible for the veracity of their offers, influencing the acceptance of their bids based on inaccurate claims, such as claiming to have cash.
- Agents can be held liable for misrepresenting known defects and must always convey accurate information.
Disclosure Requirements
- Sellers must disclose all known material defects, even in "as-is" sales; this obligation persists regardless of sale terms.
- Disclosure of any defects is not circumstantial; oral disclosures are insufficient, written ones are required.
- Non-material information damaging to the seller's negotiating position requires written consent before disclosure.
Regulatory Compliance
- Not disclosing significant facts could lead to license revocation; agents must be transparent with material information.
- Specific characteristics, like the buyer's health condition, are considered private under federal regulations and do not constitute material fact disclosures.
Buyer and Seller Dynamics
- Agents should not reveal confidential buyer information, such as employment or financial issues, to sellers without permission.
- Buyer’s inability to qualify for loans must be communicated as it constitutes a material fact.
- Sellers are not liable for defects they are unaware of, classified as innocent misrepresentation if discovered later.
General Ethical Considerations
- Agents must prioritize ethical practices, including disclosing all known defects and maintaining confidentiality when required by law or agreement.
- Puffing (exaggerating a property's qualities in advertising) does not constitute grounds for regulatory action but must still adhere to honest representation standards.
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Description
Test your knowledge on material facts, seller property disclosures, and warranties related to new and resale real estate. These flashcards cover important concepts, including fraud and misrepresentation in the real estate market.
