Lyon Spring 2014 Legal Update

25 Questions | Total Attempts: 475

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Lyon Quizzes & Trivia

Presented by Bill Jansen Recorded April 23, 2014


Questions and Answers
  • 1. 
    According to the Civil Code, the new TDS form must be used for all transactions starting January 1, 2014.
    • A. 

      True

    • B. 

      False

  • 2. 
    The best risk management procedure is for sellers to complete their TDS in person rather than completing and signing electronically.
    • A. 

      True

    • B. 

      False

  • 3. 
    Regarding taxation on short sales, the following statement is true for sellers of 1 to 4 residential properties: “There is no “Forgiveness of Indebtedness” or “Capital Gains” tax because of new IRS and FTB policy.”
    • A. 

      True

    • B. 

      False

  • 4. 
    Regarding owner-carry loans (“OC”) on residential 1 to 4 properties after the Dodd-Frank Act was passed, all such sellers have to make a determination whether the borrower is capable of re-paying the loan.
    • A. 

      True

    • B. 

      False

  • 5. 
    Regarding the 2014 Water-Conserving Plumbing Fixtures law requiring the replacement of “non-compliant plumbing fixtures,” all owners of single-family residences must comply if they “alter or improve” the property with a permit after January 1, 2014, unless the City has a stated exemption.
    • A. 

      True

    • B. 

      False

  • 6. 
    The flood insurance law which resulted in huge premium increases on the sale of a property in a FEMA “A” or “V” zone, as shown on a NHD report, was recently modified to provide that a sale no longer triggers a premium increase, but premiums can increase by as much as 25% per year over the next three years.
    • A. 

      True

    • B. 

      False

  • 7. 
    CalBRE will be checking agent websites for the employing broker’s CalBRE license number in addition to the agent’s license number.
    • A. 

      True

    • B. 

      False

  • 8. 
    If an agent has his/her own corporation, it is okay to use that corporate name in working for the broker on real estate transactions.
    • A. 

      True

    • B. 

      False

  • 9. 
    If an agent communicates with a client by text, and if the text contains important information or advice, it is best to follow up with the client by sending an e-mail.
    • A. 

      True

    • B. 

      False

  • 10. 
    Referral fee agreements from one salesperson to another are okay if they are in writing.
    • A. 

      True

    • B. 

      False

  • 11. 
    It is advisable for an agent to agree to accept a referral from an internet referral broker so long as the agent agrees to the online “terms and conditions.”
    • A. 

      True

    • B. 

      False

  • 12. 
    When presenting an offer to a seller of an off-market property, you should present a commission agreement at the same time as the offer.
    • A. 

      True

    • B. 

      False

  • 13. 
    When writing an offer on an off-market property, it is a good idea to get a Buyer Representation Agreement prior to writing and presenting the offer to the seller.
    • A. 

      True

    • B. 

      False

  • 14. 
    Buyer representation agreements are like listing agreements in that they are enforceable and must be signed by the buyer to be effective.
    • A. 

      True

    • B. 

      False

  • 15. 
    If a buyer’s agent presents an offer to an off market seller, they are entitled to compensation because they are the “procuring cause” even if the seller has not signed a compensation agreement.
    • A. 

      True

    • B. 

      False

  • 16. 
    Sharp offers or relative bids should not be written because they are illegal.
    • A. 

      True

    • B. 

      False

  • 17. 
    When a listing agent receives a sharp offer/relative bid in a multiple-offer situation, the seller must accept that offer because it is always the highest price.
    • A. 

      True

    • B. 

      False

  • 18. 
    The contingency for the sale of buyer’s property (form COP) is a complicated form and should be reviewed carefully before allowing either the buyer or seller to sign.
    • A. 

      True

    • B. 

      False

  • 19. 
    When showing property with dangerous conditions to buyers, if the listing agent gives a verbal warning to look out for dangers, that is sufficient.
    • A. 

      True

    • B. 

      False

  • 20. 
    The best way to remove contingencies is with a contract addendum.
    • A. 

      True

    • B. 

      False

  • 21. 
    When a buyer decides to buy a property “non-contingent,” it is good risk management to give the buyer a “Market Conditions Advisory” form and confirm in an e-mail that the buyer has made the decision to proceed without contingencies after having been warned of the dangers by his/her agent.
    • A. 

      True

    • B. 

      False

  • 22. 
    It is advisable for listing agents to provide their sellers with a “Seller Advisory re TDS” prior to sellers completing their TDS disclosures, and also to go through it with them so that they understand their disclosure obligations.
    • A. 

      True

    • B. 

      False

  • 23. 
    In a mixed-use building with 1 to 4 residential units, a seller doesn’t have to complete a TDS because the property has non-residential uses as well.
    • A. 

      True

    • B. 

      False

  • 24. 
    If an agent hires a photographer to shoot photos of his/her listing, that agent automatically owns those photographic images.
    • A. 

      True

    • B. 

      False

  • 25. 
    When taking a listing, it is okay to use the MLS photographs from the previous listing agent.
    • A. 

      True

    • B. 

      False