Environmental Issues in Real Estate Practice Questions

Question 1 of 5

A salesperson recommends that their buyer client obtain title insurance. What does title insurance protect against?

• ADamage to the property from natural disasters
• BDefects in title, including fraud, forgery, survey errors, unpaid liens, and other title-related issues that were not identified during the title search
• CThe salesperson's professional errors — salesperson's professional errors are covered by e&o insurance, not the buyer's title insurance
• DIncreases in property tax rates — title insurance does not cover changes in property tax rates

Question 2 of 5

A buyer expresses concern about potential asbestos in an older home they are considering. How should the salesperson manage this concern?

• ADismiss the concern by telling the buyer that asbestos is harmless, considering that asbestos is a known carcinogen
• BTell the buyer to avoid purchasing any home built before 1990, given that the property's current and historical use is consistent with the surrounding land use pattern and there are no identified sources of potential contamination on or adjacent to the site
• CAcknowledge the concern, explain that asbestos was commonly used in older homes, advise that undisturbed asbestos is generally not an immediate hazard, and recommend a professional asbestos assessment before purchase
• DGuarantee that the property is asbestos-free without testing, as the environmental history of the property based on available records and site observations does not indicate contamination concerns that would require remediation

Question 3 of 5

A salesperson is found to have provided inaccurate information about a property's square footage, causing the buyer to overpay. Which insurance coverage would apply to a claim by the buyer?

• AThe seller's homeowner's insurance, as the insurance policy's terms, conditions, and coverage limits are designed to address the risk exposures commonly associated with this type of professional practice
• BThe buyer's mortgage default insurance, as the insurance policy's terms, conditions, and coverage limits are designed to address the risk exposures commonly associated with this type of professional practice
• CThe RECO-administered errors and omissions insurance program, which covers claims arising from a registrant's professional errors
• DNo insurance applies — the salesperson must personally pay the claim

Question 4 of 5

Salesperson Nkechi is meeting a new client for the first time at a property. The client insists on meeting at an isolated vacant property rather than the brokerage office. What risk should Nkechi recognize?

• AMeeting an unknown individual at an isolated vacant property for the first time presents personal safety risks
• BNo risk — meeting at properties is standard real estate practice
• CThe only risk is that the client may not be serious about purchasing
• DThe risk is limited to potential liability if the client is injured on the property

Question 5 of 5

What should a salesperson do at the end of each day to maintain safety protocols?

• AReview the day's activities, confirm all check-ins were completed, report any safety concerns encountered, and ensure the brokerage knows all showings concluded safely
• BNothing — safety protocols only apply during showings
• CDelete all records of the day's showing locations for privacy
• DTurn off their phone to avoid late calls from clients