An investor purchases a four-unit apartment building in San Jose, California, from a bank that acquired the property through foreclosure. The investor asks the bank for a Transfer Disclosure Statement. How should the bank respond?
Correct Answer
A) Inform the investor that the sale is exempt from the TDS requirement under Cal. Civil Code §1102.2
Under California Civil Code §1102.2, foreclosure sales by lenders are exempt from the TDS requirement. The bank acquired the property through foreclosure and is selling as a lender, which falls under the statutory exemption.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Death on property disclosure addresses whether sellers must inform buyers about deaths that occurred on the property, including natural deaths, suicides, and murders. Requirements vary significantly by state.
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
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
Under California law, both the listing agent and the buyer's agent have independent duties to conduct a reasonably competent and diligent visual inspection of a residential property. Which of the following forms is used in California real estate practice to document the findings of that inspection?
Next Question
Helen is selling her home in Modesto, California. She tells her listing agent that the home's central air conditioning unit stopped working six months ago, but she has not repaired it. Under the TDS requirements, what must Helen do?