Architecture & Construction - Ch.1
Jane, a real estate broker, is working with Alex, a potential customer, to facilitate the sale of a residential property. During the process, Jane mentions the importance of obtaining the certificate of location. Alex, being unfamiliar with real estate procedures, asks Jane about the purpose of the certificate. Considering the information provided, how would Jane respond to Alex's question about the certificate of location?
Jane would emphasize that the certificate of location is solely necessary for commercial properties and not residential ones, citing specific regulations related to commercial transactions.
Jane would explain that the certificate of location is used to record relevant property information at a specific time. It also plays a crucial role in preparing the brokerage contract, completing the DS form, and drafting the description sheet.
Jane would advise Alex that obtaining the certificate of location is optional for residential properties and is typically only required for certain types of transactions, such as those involving condominiums or properties with complex legal histories.
Jane would mention that the certificate of location is primarily for assessing the property's market value for taxation purposes, providing essential information to tax authorities. She would elaborate on how this assessment impacts property taxes and the potential implications for buyers.
Where can you find the description sheets for an immovable?
At the local municipality office.
Within the property deed documents.
Through the Interagency organization.
Exclusively with the real estate broker.
Why is it important for a seller to share the findings of previous building inspection reports?
Sellers can use inspection reports as a negotiation tool to increase the property's value.
To fulfill legal obligations, sellers must disclose the inspection report details to potential buyers, ensuring transparency and a fair transaction.
Sharing inspection reports helps in obtaining a higher appraisal for the property, especially if there are positive findings that enhance its market value.
Building inspection reports aid potential buyers in understanding the property's condition, and real estate brokers are required to disclose the contents to facilitate informed decisions. This practice also contributes to building trust between the parties involved.
You, a real estate broker, are involved in a property transaction. You're considering the building inspection aspect of the process. What are a real estate broker's limitations with respect to a building inspection?
Real estate brokers are experts in building inspections, providing thorough assessments of a property's condition. While they may not hold official inspector certifications, their extensive training qualifies them to conduct detailed structural examinations. Brokers are mandated to perform inspections to ensure transparency in property transactions.
Brokers must perform in-depth structural inspections to ensure the property meets all safety standards. This includes assessing the foundation, electrical systems, plumbing, and overall structural integrity. Brokers are also responsible for any discrepancies found during the inspection.
Real estate brokers are not inspectors and, therefore, not experts on building inspections. However, a broker's inspection is a valuable way to become familiar with the immovable to fill out the DS form. This inspection also helps the broker provide better advice to clients who are interested in the immovable and determine its condition when it is put on the market.
Brokers are responsible for conducting detailed inspections and must be certified in building inspection procedures. The certification ensures that brokers have the necessary expertise to thoroughly evaluate the property's condition and identify potential issues. However, brokers are not obligated to perform inspections and can rely on certified inspectors for this aspect of the transaction.
You, a real estate broker, are in the midst of a property transaction with a client. Together, you are about to complete the Declarations by the seller of the immovable (DS) form. Your client raises a question about the adequacy of your inspection. Your client asks if your inspection, as a real estate broker, is sufficient to justify the property's condition to potential buyers and ensure compliance with safety standards.
True
False
What tools should a broker use to inspect an immovable?
Laser distance measurer, property survey map, and a soil testing kit.
Flashlight, measuring tape, checklist, and a pen.
360-degree camera, moisture meter, and a stud finder.
Geiger counter, spirit level, and a metal detector.
What is the difference between a pre-sale inspection and a pre-purchase inspection?
The purchasing broker is obligated to recommend a pre-purchase inspection, unlike the pre-sale inspection which the broker does not have to recommend.
Both pre-sale and pre-purchase inspections are mandatory recommendations by the purchasing broker.
Pre-sale inspections are exclusively for sellers, while pre-purchase inspections are solely for buyers.
The broker must recommend both pre-sale and pre-purchase inspections as part of standard practice.
Which professionals can carry out the building inspection?
Property appraiser, environmental consultant, and land surveyor.
Engineer, architect, and building inspector.
Mortgage broker, title insurance agent, and notary public.
Commercial real estate agent, building inspector, and architect.
Why is a building inspector unable to detect hidden defects?
The inspector lacks the necessary tools for uncovering hidden defects.
Building inspectors are not trained to identify concealed issues.
The building inspection is visual only and not intrusive. It is therefore impossible for the inspector to see any defects hidden in the walls.
Inspectors are not allowed to access areas where hidden defects may exist.
Why might a buyer choose to withdraw from the sale after the building inspection?
Buyers withdraw only if the inspection report indicates major structural issues.
A buyer may choose to withdraw if the building inspection reveals factors likely to decrease the property value or income, such as mold or increase expenses such as roof repairs.
Buyers can only withdraw if the inspection uncovers issues related to plumbing or electrical systems.
Withdrawal is only possible if the building inspection report is completely negative.
You, a real estate broker, are advising a client on selecting a building inspector. The client seeks clarification on the conditions recommended by the OACIQ for a building inspector. According to the OACIQ, what conditions must a building inspector meet to be recommended by a broker?
Inspectors should have certifications from reputable organizations, possess a thorough understanding of local building codes, and demonstrate experience in inspecting similar types of properties.
Brokers are encouraged to recommend inspectors with expertise in building practices, a strong knowledge of environmental impact assessments, and a track record of thorough and accurate inspections.
Building inspectors must possess a valid driver's license, wear professional attire, and maintain a friendly demeanor.
Brokers are advised to recommend inspectors who have professional liability insurance for mistakes, errors, or omissions. They should use a recognized inspection service agreement, perform inspections following a recognized building inspection standard of practice, and submit a written report to the party using their service.
How should you respond to a client who asks you to pay for the building inspection?
Agree to cover the cost as a gesture of goodwill.
Decline, as it may represent a conflict of interest for the broker to pay for the building inspection.
Suggest splitting the inspection costs evenly between the buyer and the broker.
Recommend that the client find another broker who is willing to pay for the inspection.
What should the real estate broker do after performing a summary inspection of a property?
File a detailed report with the local municipality.
Post the inspection findings on social media.
Fill out the declarations by the seller of the immovable and the brokerage contract.
Provide the inspection summary to the potential buyers directly.
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