45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Section 11 Unit 1 Exam

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Question #1
You’ve listed a 1918 Craftsman with some significant foundation issues—so significant that the buyers walked away after the inspection. They provided you and your sellers with a copy of the inspection report, which also points out some wiring concerns. At today’s open house, a prospective buyer asks to see a copy of any inspections done on the property. What should your response be?
A.   You should disclose any adverse material facts, but you don't have to provide the report.
B.   You should provide an inspection report to all prospects, along with seller disclosures.
C.   You should provide an inspection report, but only if specifically asked.
D.   You should ask the buyers who walked away whether you can provide a copy.
Question #2
John and Amy purchased a builder's home warranty when they bought their home. They have found structural damage that could be a detriment to their home. On average, how many years does a home warranty cover structural damage?
A.   Three years
B.   One year
C.   10 years
D.   Five years
Question #3
Lamar closes on his new home next week. It’s a 37-year-old split level, so his agent asked if he’s interested in purchasing a home warranty. “Why would I need a warranty?” he wondered. “Didn’t the home inspection identify all of the issues?” What’s the agent’s best response to Lamar’s question?
A.   If you purchase a home warranty and something breaks, you can sue the seller.
B.   Buying a home warranty almost guarantees you won't have any issues!
C.   A home warranty covers things the inspection didn't address, like appliances, as well as structural issues that occur.
D.   The inspection is only as good as the inspector, and there is no guarantee that the inspector found all potential issues.
Question #4
After closing, a buyer discovers the seller wasn't honest about the property condition on the state's required disclosures. What can the buyer do?
A.   Sue the seller for fraud or breach of contract.
B.   Terminate the contract.
C.   Ask for a refund of his earnest money.
D.   The buyer has no options after closing.
Question #5
Home inspector Murray is explaining to first-time buyers what he looks for during a home inspection. What is his primary goal?
A.   Estimate how much cosmetic upgrades may cost the buyers.
B.   Document health and safety issues that may affect both the cost and enjoyment of the home.
C.   Verify lot lines and acreage calculations.
D.   Verify the presence of any easements or encroachment on the property.
Question #6
When may a home warranty be purchased?
A.   Only at the time the property is listed
B.   When something breaks
C.   When the property is listed or at the time of closing
D.   Right after closing
Question #7
Roy purchased a newly constructed home with a warranty that covers major structural defects for 10 years, and systems (HVAC, electrical, plumbing) for three years. After living in the home a few months, Roy notices the following defects and submits them all. Which one will likely be covered by the warranty?
A.   A baseboard with paint drips
B.   A light fixture that doesn't match other light fixtures in the home
C.   A tear in the carpet
D.   A split ceiling joist in the basement
Question #8
Darren and Natalie are first-time buyers who have decided to purchase a newly built townhouse. Their agent, Jenner, tells them that the builder must provide a one-year home warranty. Which of the following conditions is most likely true?
A.   Darren and Natalie are using an FHA-insured loan.
B.   Darren and Natalie are getting a USDA rural development loan.
C.   Darren and Natalie made an all-cash offer.
D.   Darren and Natalie are using conventional financing.

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