Course II-III Interactive Study Group - Kaplan Professional

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Course II-III Interactive Study Group

Disclosures

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Question!

Which of the following must a licensee provide to every potential renter at the first substantive contact? a. A lease listing b. A blank lease c. A tenant representation agreement d. An Agency Relationships in Real Estate Transactions disclosure

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Question Minnesota statute requires a seller to disclose which of the following? a. All wells b. All septic systems c. All material facts d. All of these

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Question

Minnesota statute requires a seller to disclose which of the following? a. Sealed wells b. Abandoned wells c. Active wells d. All of these

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Question The Minnesota Association of REALTORS® Purchase Agreement requires the seller to make certain disclosures and warranties. Which of the following is NOT one of those warranties? a. Disclosure of moisture or water leaks in the home. b. Whether or not the property is connected to city water. c. Whether or not the property is connected to city sewer. d. Knowledge of a subsurface sewage treatment system on or serving the property.

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Question

Which of the following is NOT considered a material fact in Minnesota? a. Water seepage in the basement. b. Suicide or natural death. c. Inoperable doors or windows. d. Damage to garage structure.

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Question Does the seller’s property disclosure need to be amended if new material facts are discovered before closing? Why? a. Yes, because material fact disclosure to continue until the time of closing. b. Yes, because material fact disclosure must continue until all contingencies are satisfied. c. Not if the seller fixes the issue prior to closing. d. No, because disclosure of material facts is only required once.

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Question

Minnesota law defines a material fact as anything which a. the seller is aware of. b. would be considered a substantive repair. c. would adversely and significantly affect the buyer. d. a qualified home inspector would discover.

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Question! Assuming the buyer and seller formally agreed to arbitration, in the event of a dispute, the buyer or seller must file for arbitration within _______ of closing? a. 6 months b. 12 months c. 24 months d. 36 months

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Question

Which of the following must be presented first? a. Listing agreement b. Purchase agreement c. Seller’s Disclosure Form d. Agency Disclosure Form

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Question!

Regarding the agency disclosure form; a. It must be presented at the first substantive contact with a prospect. b. It is a binding contract. c. It must be signed by agents and brokers. d. It is issued by the state.

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Question

The Agency Relationships in Real Estate Transactions disclosure is required by

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a. Minnesota Realtors Association b. Code of Ethics c. National law d. Minnesota law

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Question

The Agency Relationships in Real Estate Transactions form…

a. is a binding contract. b. must be signed by the agent. c. must be discussed at the first substantive contact with a prospect. d. may be presented when drafting contractual agreements.

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Question

What does the Agency Relationships in Real Estate Transactions form specifically address? When does the law require it? Any exceptions?

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D. Present the agency disclosure form, page 1

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E. Present the agency disclosure form, page 2

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A. Seller’s Property Disclosure Statement

1. Receipt of disclosure is addressed in the purchase agreement on line 176.

2. Buyer must receive seller disclosure statement or seller disclosure alternative.

3. Statement must be completed and signed by sellers.

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A. Seller’s Property Disclosure Statement

4. Buyer should read the form thoroughly and request any additional information needed regarding material facts about the property.

5. Buyers sign disclosure at time of offer to acknowledge receipt.

6. If any material facts have changed since the disclosure was completed, seller must add information using an Amendment to Disclosure Statement form.

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Seller’s Property Disclosure Statement

Listing Date 10

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234 Urban Lane Urbania Hennepin

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July 2003 X

X X

X X

X

X

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X 234 Urban Lane, Urbania, MN

X

X

X

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X X X

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X

X

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234 Urban Lane, Urbania, MN

X

Remodeled main fl bath 2009 and upper level May 2010; new landscaping/pavers June 2008

X

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X

X cats 2

cats with home since 2010

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X X X X

X

X X

X

Basement walls get damp during the spring thaw and occasional water in NW corner during extremely heavy rain.

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5 X X X X

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X

X

X X X X X X X X X

X X X X

X X

X

X X X

X X

X

X

X X

X X

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X

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X

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X

X X

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X

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X

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X X X X X

X X X X

X

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F. Point of sale/time of sale inspection

1. Third-party inspection is required by some cities.

2. Inspector must be licensed; however the license is not governed by the state.

3. Check city requirements for inspection reports.

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Course II-III Interactive Study Group - Kaplan Professional

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