Question: Match each environmental hazard with its description.

Answer Options: Radon Mold Asbestos Lead colorless odorless gas from the earth fibrous insulation material toxin-releasing fungus toxic metallic element in paint, dust, water, and soil.

Answer: Radon — gas from the earth; Mold — toxin-releasing fungus; Asbestos — fibrous insulation material; Lead — toxic metallic element. 62

Question: Match each environmental law with its example.

Answer Options: CERCLA CWA CAA RCRA vehicle-emission standards refinery/hazardous-waste operations emergency toxic-waste spill response wastewater-discharge permits.

Answer: CAA — vehicle emissions; RCRA — refinery and hazardous-waste operations; CERCLA — toxic-spill response; CWA — wastewater-discharge permits. 63

Question: What may happen if a buyer fails to schedule an inspection during the inspection period?

Answer Options: A. Automatic seven-day extension B. Buyer may be obligated to purchase as-is C. Buyer may cancel and automatically receive earnest money D. Buyer must forfeit earnest money.

Answer: B. Buyer may be obligated to purchase the property as-is. 64

Question: The period in which a buyer may conduct inspections is called the:

Answer Options: A. Due-diligence period B. Investigation period C. Opportunity period D. Option period.

Answer: A. Due-diligence period. 65

Question: After reviewing a home-inspection report, a buyer may do all except:

Answer Options: A. Request repairs B. Buy as-is C. Cancel under the contingency D. Unilaterally withhold repair costs from the purchase price.

Answer: D. Unilaterally withhold repair costs from the purchase price. 66

Question: The Residential Lead-Based Paint Hazard Reduction Act does NOT require:

Answer Options: A. Disclosure of known hazards B. A lead-safety pamphlet C. Prior test reports D. Sellers or tenants to pay for testing.

Answer: D. Sellers or tenants to pay for testing. 67

Question: A patio door has a large, visible crack held with duct tape. What kind of defect is it?

Answer Options: A. Latent and disclose B. Latent and do not disclose C. Patent and disclose D. Patent and do not disclose.

Answer: C. Patent defect; disclose it. 68

Question: What does “caveat emptor” mean?

Answer Options: A. Let the buyer beware B. Neither a borrower nor a lender be C. No time like the present D. Seize the day.

Answer: A. Let the buyer beware. 69

Question: A former owner died of AIDS, a convicted child molester lives nearby, and the home was once invaded. What must the licensee proactively disclose?

Answer Options: A. All events B. Crime and offender only C. Offender only D. None of them.

Answer: D. None of them must be proactively disclosed. 70

Question: In what phase of an environmental site assessment are soil samples taken and tested?

Answer Options: A. Phase I—Investigation B. Phase II—Testing C. Phase III—Remediation D. Phase IV—Management.

Answer: B. Phase II—Testing. 71

Question: What should a listing agent do when asked about known sex offenders in the area?

Answer Options: A. Direct the buyer to the official registry B. Ask neighbors C. Compile a list D. Tell the buyer to ask the seller.

Answer: A. Direct the buyer to the official registry. 72

Question: Which client information cannot be kept confidential?

Answer Options: A. A disputed boundary line B. A resident’s HIV/AIDS diagnosis C. A past murder D. A neighboring group home.

Answer: A. A disputed boundary line. 73

Question: Match vendor, mortgagee, vendee, and mortgagor with their definitions.

Answer Options: Holds a lien holds legal title under a land contract pledges property as collateral possesses land under a land contract.

Answer: Mortgagee — holds lien; Vendor — holds legal title; Mortgagor — pledges property; Vendee — possesses land. 74