Humber Real Estate - Course 2, Module 9, Preparing to Market a Residential Real Property exam| 77 questions and answers

- Property lot measurements - Registered owner(s) of the property - Last sale date of the property, with the sale price - Assessed value of the property - Legal description of the property - Description of the property (i.e. "single-family detached home" - Total square footage of the property - Various reports about the neighbourhood (crime rates, etc.) What details can be confirmed on GeoWarehouse? - When did the seller buy the property? - How much did the seller pay for the property? - Are there any past disclosures about the property? Before a pre-listing presentation, what details can you find in the archives of the local listing service? - Check with the local police department - Do an internet search using the property address How can you determine any misuse or stigma associated with a property? Are you working with another salesperson or brokerage? If they say yes, you should end further communication with them. If not, you can ask them why they are selling their property. Before scheduling a pre-listing presentation, what question should you ask the seller? - Information about the history and success of the brokerage - Information about yourself - Applicable forms, such as a representation agreement, data sheet and property disclosure forms - Past and current client testimonials - Supporting documentation (i.e. other listings, market trend information and related analysis to assist in the discussion) - Overall strategy for establishing a listing price and marketing their property - Information about current market conditions (i.e. whether it's a seller's market, buyer's market or balanced market) What are the components of a pre-listing presentation? 5 years How long is a FINTRAC form kept on file for? - Measuring tool (i.e. laser measuring device, digital measuring wheel, tape measure) - Flashlight - Camera - Notepad What tools are required for taking your own measurements of the property? A material latent defect. What type of defect would it be if a property experienced extensive basement flooding during the spring thaw but cannot be detected in the winter? True True or false? The non-disclosure of a known serious latent defect may invalidate the contract. - Ask the seller questions about the condition of the property - Use a seller property information statement to help identify known latent defects and obtain the seller's permission to make this statement available to all interested parties - Ensure the seller understands the importance of making accurate statements about the condition of the property, particularly relating to material latent defects - Remind the seller of their legal obligation to disclose known latent defects to all potential buyers - Advise the seller that non-disclosure of a serious latent defect may invalidate the agreement of purchase and sale or lead to legal consequences To avoid future legal issues and protect both the seller and the brokerage, you would do what during a pre-listing presentation? - Finished or unfinished - Cracks - Moisture - Mould - Peeling paint - Water stains During a visual inspection, what should you look for in the attic and basement? Floors: - Type of floors (hardwood, laminate, broadloom, ceramic) - Condition of the floors (slanted, warped) Staircase: - Safety rail - Slanted or loose stairs - A large number of stairs that would be a problem for a person with limited mobility During a visual inspection, what should you look for in relation to floors and staircases? - Cracks - Efflorescence (indicates previous presence of moisture) During a visual inspection, what should you look for in relation to the foundation? - Type of heating source (e.g. electric, gas, ground source, oil, propane, solar or wood) - Type of air conditioning (e.g. packaged or central air) During a visual inspection, what should you look for in relation to heating, ventilation and air conditioning (HVAC)? Plumbing: - Kitec plastic plumbing - Pipes (e.g. lead, galvanized metal, cast iron) - Insulated pipes (possible asbestos insulation) - Leaks - Out-of-date systems Wiring: - Knob-and-tube wiring - Aluminum wiring - Out-of-date systems - Inadequate amperage During a visual inspection, what should you look for in relation to plumbing and wiring? - Cracks - Moisture - Water stains - Mould During a visual inspection, what should you look for in relation to walls and ceilings? Exterior wall - cracks, water stains Doors - type, peeling paint, how easily it opens and closes Windows - type, age, closure General wear and tear During a visual inspection, what should you look for in relation to the exterior areas of the house? Grass/lawn - whether grass is overgrown, presence of weeds Unusual depressions in the lot grading Potted plants/garden - whether it appears vibrant, well-kept Condition of any fencing Pipes sticking out of the ground (could be an indication of a buried oil tank) During a visual inspection, what should you look for in relation to the front yard and back yard? - Type of roof covering - Age of the shingles - Missing shingles During a visual inspection, what should you look for in relation to the roof? Detached garage - general wear and tear (e.g. peeling paint) or does its roof encroach on another property? Shed - does it encroach upon another property? During a visual inspection, what should you look for in relation to secondary structures? - A seller is not legally bound to complete one - If they do, the answers must be truthful and potential buyers and their salespersons must be told that the form exists and be given a copy, unless instructed otherwise by the seller What are the rules surrounding a property disclosure form? Ownership and title: - Who is registered on the title - Is there spousal interest? (i.e. not on the title but has an interest in the property) - Is the property subject to a first right of refusal (meaning there is a third-party interest or claim on a property, such as a mortgage) - Mortgages, lines of credit or other debt obligations registered against title Land use restrictions: - Encroachments, easements or rights of way indicated on the survey - Disputes with neighbours about the above issues or other boundary-related disputes - Special designations, such as a heritage property Zoning: - Zoning bylaws and restrictions - Compliance with the zoning - Municipal plans for re-zoning the property or neighbouring properties, if any Property taxes and notice of assessment: - Current property tax bill based on assessment provided by the Municipal Property Assessment Corporation (MPAC) - Acknowledgement that the property taxes have been paid - Special assessments (if the seller is unclear, the salesperson should check with the local municipal office) Other costs associated with ownership: - Confirm & obtain copies of utility bills and other costs/bills for the past 12 months What key property information will you need to gather from the seller? - Review and retain a copy of the survey from the seller and keep it on file for reference - Review and compare source documents, such as the tax bill and notice of assessment from MPAC, which contain the lot frontage and depth - Include the frontage and depth for rectangular lots, full dimensions for irregular lots, and dimensions and/or exact acreage for larger tracts How should you verify the accuracy of the lot size? - If your brokerage is a member of organized real estate, check with the local real estate board for measuring guidelines; for example, a range of square feet/square meters - Purchase a report from GeoWarehouse - Obtain the builder's floor plans from the seller, if it's a newer construction How should you verify the accuracy of the total living area? - Document any irregularly shaped rooms, including how that room was measured (e.g. "from the widest point") - Measure rooms yourself; you should not rely solely on previous listing information, which should be used only as a source of comparison How should you verify the accuracy of room sizes? Review source documents to verify the following: - Determine the age of the HVAC system and whether the components are owned, leased or rent-to-own - Determine whether the heating fuel source is gas, electric, wood or propane - Determine the age of the hot water tank and a water softener, and whether they are rented, leased or owned How should you verify the accuracy of the information about the HVAC system? - Is the property connected to municipal water/sewer services; if the seller does not know, contact the local municipality - Obtain available documentation regarding any existing well or septic system - Ask the seller if they ever had their municipal water tested; if yes, ask why and request a copy of the report if available - Ask if the seller is a party to a community or shared well (if yes, review the agreement and obtain a copy for your files), and whether the well is dug or drilled - Ask if there is a cistern (a tank for storing water) - Ask whether the water is pumped from a lake or river (if there is no municipal water supply or existing well) - Ask when the septic tank was last pumped and any services/repairs that may have been completed; Ask for a copy of these reports What questions should you ask a seller to verify the information about a well and/or a septic system? - Determine the type of electrical system in a newer house (60-amp, 100-amp or 200-amp service) ... in older homes the panel may have been upgraded to accommodate 100 amps, but the actual wiring is only 60 amps. If in doubt, rely on an electrician to make the determination. - Are there any sub-panels in the house, the garage and other buildings on the property? - Is the wiring copper or aluminum and if there's any knob-and-tube wiring What questions should you ask a seller to verify the information about wiring?