Commercial Real Estate Broker · Minot - Tacoma, ND - WA · Member since 2014 · 60 posts · 21 votes
I'm looking for clarification on a question from the Washington State Real Estate Course, if anybody is willing to weigh in. I think this is a bad question because of the shift from designated broker to client from question to answer, but does the answer change? Or is it still the duty of disclosure, regardless?
Thanks!
12.A broker is responsible for keeping the designated broker informed of all facts that could affect a transaction. This is known as the duty of
A. care.
B. obedience.
C. accountability.
D. disclosure.
Correct answer is D. The fiduciary duty of disclosure means the broker is responsible for informing the client of all information that could affect the transaction. It includes providing the proper documents that are used in a transaction such as the property disclosure form and lead-based paint disclosure forms.
I'm also interested in an explanation on this one if anybody knows. Why would an entities reserve funds have an influence on an appraisal, unless the reserve funds were to be included in the sale?
11.Which of the following would an appraiser NOT consider when appraising an apartment building?
A. Vacancy rate and credit loses
B. Reserve funds for major improvements in the future
C. The depreciation of the improvements
D. The debt service on the property
Correct answer is D. The debt service or mortgage payment is NOT considered by an appraiser when determining the value of a property.
Welcome back to the west coast. Used to play basketball w you at the y in gig harbor. Get a hold of me sometime, I'm looking for a couple more rentals myself
What's up Ian!? I've been back since June, and more recently hooping at the downtown Y, with the guys on MWF at 5am. Great numbers if you want to play!