CTC Real Estate Documentation & Compliance 2

Question 1

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

Accepted Answer

3 years after the sale is completed

Answer

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

Question 2

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?

Accepted Answer

10 days

Answer

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.

Question 3

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?

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

The ESIGN Act

Answer

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

CTC - Certified Transaction Coordinator Practice Test

CTC - Certified Transaction Coordinator Practice Test

CTC Real Estate Documentation & Compliance 2