Unit 14 California legal aspects of real estate:
disclosures in real estate transactions Exam 2025
Questions and Answers
Who has a primary responsibility to notify the buyer and the seller, in writing, of the selling price of
real property after completion of the sale? - ANSWER✔️✔️-broker
Don is a licensee who is helping Donna cell her home. He visually inspects her property and notices
a musty odor (but no mold) in one bathroom. Donna cleans and uses an air freshener. Of the
following statements, which is correct regarding Don's responsibility? - ANSWER✔️✔️-Don is
not required to do anything other than indicate on the TDS that there is a musty odor in one
bathroom.
Which of the following is/are not included on the TDS?
A. Automatic garage door openers.
B. Smoke detectors.
C. Megans law.
D. Solar panels. - ANSWER✔️✔️-C. Megan's Law
How should real estate licensees protect themselves when handling real estate transactions? -
ANSWER✔️✔️-Document and disclose material facts
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, State law requires that all new and replacement ___ sold in California on or after July 1, 1991 must
be braced, anchored or strapped to resist falling or horizontal displacement due to earthquake
motion. - ANSWER✔️✔️-water heaters
Alain is a French citizen who resides in California. He owns a home that he wishes to sell to his son,
Francois, who was born here and is a U.S. citizen. He intends to sell the home to his son at fair
market value, which is currently $785,000. Do Alain and Francois have any special considerations
because of their respective citizenships? - ANSWER✔️✔️-Yes, under FIRPTA, a portion of the
sale will be diverted to the state and federal tax agencies.
Gayle is a senior citizen who has lived in her neighborhood for over 40 years. Unfortunately, the
neighborhood has deteriorated over the years. Gayle's next-door neighbor uses his house to
manufacture and sell methamphetamine drugs, which has resulted in several arrests. However,
Gayle's house has never been used to sell or manufacture any controlled substances. There have
been several incidents involving drug users, for which Gayle has had to call the authorities to deal
with undesirable people causing a disturbance. When selling her home, does Gayle have any
obligations to disclose on the Transfer Disclosure Statement (TDS) what she knows about her
neighbor? - ANSWER✔️✔️-Yes, because the police activity and violence are facts that could
reasonably be material to a potential buyer.
The following items are all included on the natural hazard disclosure, except:
A. Drought
B. Floods.
C. Seismic hazards, such as liquefication.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
disclosures in real estate transactions Exam 2025
Questions and Answers
Who has a primary responsibility to notify the buyer and the seller, in writing, of the selling price of
real property after completion of the sale? - ANSWER✔️✔️-broker
Don is a licensee who is helping Donna cell her home. He visually inspects her property and notices
a musty odor (but no mold) in one bathroom. Donna cleans and uses an air freshener. Of the
following statements, which is correct regarding Don's responsibility? - ANSWER✔️✔️-Don is
not required to do anything other than indicate on the TDS that there is a musty odor in one
bathroom.
Which of the following is/are not included on the TDS?
A. Automatic garage door openers.
B. Smoke detectors.
C. Megans law.
D. Solar panels. - ANSWER✔️✔️-C. Megan's Law
How should real estate licensees protect themselves when handling real estate transactions? -
ANSWER✔️✔️-Document and disclose material facts
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, State law requires that all new and replacement ___ sold in California on or after July 1, 1991 must
be braced, anchored or strapped to resist falling or horizontal displacement due to earthquake
motion. - ANSWER✔️✔️-water heaters
Alain is a French citizen who resides in California. He owns a home that he wishes to sell to his son,
Francois, who was born here and is a U.S. citizen. He intends to sell the home to his son at fair
market value, which is currently $785,000. Do Alain and Francois have any special considerations
because of their respective citizenships? - ANSWER✔️✔️-Yes, under FIRPTA, a portion of the
sale will be diverted to the state and federal tax agencies.
Gayle is a senior citizen who has lived in her neighborhood for over 40 years. Unfortunately, the
neighborhood has deteriorated over the years. Gayle's next-door neighbor uses his house to
manufacture and sell methamphetamine drugs, which has resulted in several arrests. However,
Gayle's house has never been used to sell or manufacture any controlled substances. There have
been several incidents involving drug users, for which Gayle has had to call the authorities to deal
with undesirable people causing a disturbance. When selling her home, does Gayle have any
obligations to disclose on the Transfer Disclosure Statement (TDS) what she knows about her
neighbor? - ANSWER✔️✔️-Yes, because the police activity and violence are facts that could
reasonably be material to a potential buyer.
The following items are all included on the natural hazard disclosure, except:
A. Drought
B. Floods.
C. Seismic hazards, such as liquefication.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
