Susan is selling her home in Riverside. Her listing agent, David, discovers during his visual inspection that the garage has been converted into a living space with a kitchenette. Susan says she did the conversion herself five years ago. David checks county records and finds no building permit. How should David handle this?
Correct Answer
D) Disclose the unpermitted garage conversion as a finding in his agent visual inspection section of the TDS
Under California Civil Code §2079, David must disclose all material facts discovered during his visual inspection. An unpermitted garage conversion is a material fact affecting the property's legal status and value. David must note this finding in his agent section of the TDS.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
Asbestos disclosure involves informing buyers about the presence of asbestos-containing materials (ACMs) in a property. Asbestos was commonly used in construction materials before 1980 and poses health risks when fibers become airborne.
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
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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Under California Civil Code §1102, the Transfer Disclosure Statement applies to transfers of residential real property consisting of how many dwelling units?
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A California seller delivers the TDS to a buyer before the buyer signs the purchase agreement. After the buyer signs, the seller discovers a cracked sewer line and sends an amended TDS by mail on Monday. Under California law, when does the buyer's new rescission period expire?