Broker discovering defect before settlement must:
Correct Answer
B) Inform seller and buyer
Agents have a duty to disclose known material defects to both parties in the transaction.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
More Practice Of Real Estate Disclosures Questions
At a DRE administrative disciplinary hearing in California, what standard of proof must the Department meet to sustain a finding against a licensee?
A California property owner in a Mello-Roos CFD discovers that the bond proceeds were mismanaged by the CFD administrator and the planned community park was never built, even though property owners have been paying the special tax for 10 years. What legal recourse does the property owner have?
A seller in Sacramento is selling a single-family home. The listing agent wants to ensure accurate NHD information. Under California law, can the seller's agent rely on a third-party NHD report from a qualified company to satisfy the disclosure requirement?
A landlord instructs a California real estate agent to apply stricter application screening criteria to rental applicants based on their national origin. The agent follows these instructions. Which of the following best describes the agent's legal exposure?
Under California law, how often must a broker reconcile the trust account?
- → A California broker places an ad that states: 'As seen on HGTV — our agents are the best in the state!' None of the broker's agents have appeared on HGTV. Under California law, this advertisement:
- → Under California law, several disclosures relate to property taxes and special assessments. All of the following must be disclosed to a buyer EXCEPT:
- → A landlord must give a month-to-month tenant how many days' notice to terminate the tenancy in California (for tenancies less than one year)?
- → A California broker is ready to assign a new salesperson to handle client showings and write offers. Under Cal. B&P Code §10159.2 and DRE regulations, which of the following best describes the broker's licensing-related responsibility before the salesperson begins working?
- → George, a California seller, completes the TDS for his home in Anaheim. He marks 'Yes' to the question about whether he is aware of any room additions or structural modifications. He then writes that he added a bedroom and bathroom three years ago with a building permit. Under California law, is this disclosure adequate?
- → A salesperson receives a $2,000 cash earnest money deposit from a buyer during a property showing. Under Commissioner's Regulation 2832, what is the salesperson's required next step?
- → A commission check payable to a California brokerage arrives after a transaction closes. The salesperson who closed the deal asks the broker to endorse the check directly to the salesperson rather than processing it through the brokerage. Under DRE regulations, what is the broker's correct course of action?
- → During a DRE audit of a California broker's office, the auditor finds that the last completed trust account reconciliation is dated eight months ago. Which of the following best describes the broker's compliance status under Commissioner's Regulation 2831.2?
- → Under Cal. B&P Code §10159.2, a California broker is required to maintain a written office policy manual. Which of the following most accurately describes the scope of topics the manual must address?
- → California requires notice for estate at will termination:
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Previous Question
Blake sold his home to Frank but remained in possession and negotiated a two-year leaseback. Frank did not record the deed. During this two-year period, Blake sold the home to Sam who then recorded the deed. Who owns the home?
Next Question
Maria is selling her single-family home in Sacramento. Her listing agent, James, provides her with a Transfer Disclosure Statement (TDS) form. Under California Civil Code §1102.6, which portion of the TDS is Maria, as the seller, responsible for completing?