Real Estate Documentation & Compliance Flashcards

For a home built in 1972, how long must the listing agent and seller keep a copy of the signed lead-based paint disclosure?

Answer: 3 years after the sale is completed

Federal lead-based paint rules require sellers and agents to keep the signed disclosure for 3 years from the completion of the sale.

Under federal law, how long does a buyer of pre-1978 housing usually get to have a lead-based paint inspection unless they waive it in writing?

Answer: 10 days

Buyers get a 10-day opportunity to test for lead-based paint hazards unless the parties agree to a different period or the buyer waives it in writing.

A transaction coordinator sees a counteroffer where the price was crossed out and changed by hand but only the seller initialed the change. What is the right next step?

Answer: Get the buyer to initial the change, or send a written counteroffer for acceptance

A handwritten change binds both parties only after each of them shows agreement, usually by initialing it.

What is the main difference between an addendum and an amendment to a purchase contract?

Answer: An addendum is usually part of the original contract, and an amendment changes the terms after the contract is signed

Addenda are usually attached when the contract is formed, while amendments change terms of a contract that already exists.

Which federal law gives electronic signatures on real estate contracts the same legal effect as handwritten ones in interstate commerce?

Answer: The ESIGN Act

The Electronic Signatures in Global and National Commerce (ESIGN) Act of 2000 gives e-signatures legal validity.

A seller lists a home 'as is.' What does that mean for the seller's disclosure duties in most states?

Answer: The seller must still disclose known material defects

An 'as is' sale means the seller won't make repairs, but it doesn't excuse the seller from disclosing known material defects.

Which document lists the requirements to satisfy and the exceptions to coverage before a title policy is issued?

Answer: The title commitment

The title commitment shows what must be done before the policy issues and which items the policy will exclude.