front 1 The primary part of an agent’s responsibility is to | back 1 The principal, but apart of it also goes to the 3rd party |
front 2 Customer | back 2 The 3rd party or non-representative for whom service is provided |
front 3 Real estate professional duties are | back 3 * reasonable car and skill in performance |
front 4 Real estate brokers and sales associates ___ always be careful about the statements they make | back 4 MUST |
front 5 They need to be sure the consumer understands whether the statement is an | back 5 Opinion or fact |
front 6 Statements of opinion | back 6 Are permissible if not made carelessly and there is no intention to deceive |
front 7 Statements of facts | back 7 Must be accurate |
front 8 Puffing | back 8 Exaggeration of a property’s benefits |
front 9 Puffing is legal | back 9 Real estate professionals must enforce that none of their statements can be interpreted as fraudulent |
front 10 Puffing is considered | back 10 Unethical if legal |
front 11 Fraud | back 11 Is the intentional misrepresentation of a material fact in such a way as to harm or take advantage of anther person |
front 12 What does fraud include | back 12 Making false statements about a property but also intentionally concealing or failing to disclose important facts when there is a duty to disclose |
front 13 Negligent misrepresentation | back 13 Occurs when the real estate professional should have known that a statement about a material fact was false |
front 14 A ___ due to the professional’s carelessness will make the professional culpable | back 14 Misrepresentation |
front 15 What does culpable mean | back 15 Subject to liability |
front 16 If a real estate professional accidentally fails to perform some act | back 16 They may be liable for damages that result from such a negligent ommission |
front 17 Example of this | back 17 Forgetting to deliver a counteroffer |
front 18 Disclosure of environmental hazards | back 18 Can render properties unusable for the buyer’s intended purpose |
front 19 The buyer or buyer’s mortgage lender | back 19 Requests inspection or tests to determine the presence or level of risk |
front 20 In residential transactions involving up to 4 units | back 20 The seller typically has a duty to disclose any known defects that threaten structural soundness or personal saftey |
front 21 Later defect | back 21 Is a hidden structural defect that would not be discovered by ordinary inspection |
front 22 Can a buyer cancel the sales contract or receive damages when a seller fails to reveal known defects | back 22 Yes, everything must be disclosed to the buyer |
front 23 In some states, the agent has an | back 23 Independent duty to conduct a reasonably competent and diligent inspection of the property |
front 24 If the real estate professional should have known about a substantial defect that is detected later by the buyer | back 24 The real estate professional may be liable to the new buyer for any damages resulting from that defect |
front 25 Stigmatized properties | back 25 Are those that society has found undesirable because of events that occurred there or because of proximity of the property to a known nuisance |
front 26 What is considered a common criminal event | back 26 Homicide, illegal drug manufacturing, gang-related activities, or a suicide |
front 27 Properties that are stigmatized by rumors | back 27 Hunted |
front 28 Some states have laws regarding the disclosure of information about such properties… | back 28 Designated to protect sellers, real estate professionals, and local property values against a baseless psychological reaction |
front 29 Megan’s Law | back 29 Promotes the establishment of state registration systems to maintain residential information on every person who kidnaps children, commits sexual crimes against children, or commits sexually violent crimes |
front 30 Megan’s Law | back 30 Creates another category of stigmatized property |