Transaction Coordination Flashcards

For a home built before 1978, federal law requires the seller to give the buyer which item?

Answer: A lead-based paint disclosure and the EPA pamphlet

The federal Lead-Based Paint Disclosure Rule applies to most housing built before 1978.

Under the federal lead-based paint rule, buyers generally get how long to conduct a lead inspection unless they waive or agree otherwise?

Answer: 10 days

The rule provides a 10-day opportunity for a lead risk assessment or inspection unless changed by mutual agreement or waived.

A foreign seller is selling a U.S. property for $800,000 with no exemption. What does FIRPTA generally require at closing?

Answer: Withholding of 15% of the amount realized

FIRPTA generally requires the buyer to withhold 15% of the gross amount realized when a foreign person disposes of U.S. real property.

Who is legally responsible for FIRPTA withholding when the seller is a foreign person?

Answer: The buyer (transferee)

The transferee (buyer) is the withholding agent under FIRPTA, though the closing agent usually handles it.

Inspection reveals a roof issue and the buyer submits a repair request. What should the seller's agent do first?

Answer: Review the request with the seller and explain options: repair, credit, price reduction, or decline

The seller's representative must present the request and explain all response options so the seller can decide.

Why is it important for the listing agent to obtain receipts for seller-completed repairs before closing?

Answer: To document that agreed repairs were performed as required by the contract

Receipts prove compliance with the repair agreement and help prevent post-closing disputes.

A condo listing requires HOA resale documents. When should the seller's agent request them?

Answer: As soon as the property is under contract or earlier

HOA documents can take days or weeks and often trigger buyer review periods, so ordering them early prevents delays.