which statement is false regarding homeowners association disclosure requirements
Home-equity plans. Below in italics is an email we received from the CIC Board regarding an update to the Disclosure Notice. exclusion of gain from the sale of a principal residence up to $500,000 for a single adult. See interpretation of 5(b)(1)(iii) Telephone Purchases in Supplement I. The consumer receives the first advance. Because 1026.7(b)(11)(ii) provides that 1026.7(b)(11)(i) does not apply to periodic statements provided for charged-off accounts where full payment of the entire account balance is due immediately, 1026.5(b)(2)(ii)(A)(1) also does not apply to the mailing or delivery of periodic statements provided solely for such accounts. Share anything that could negatively impact the usefulness, value or enjoyment of the property. A deferred interest or similar promotional program under which the consumer is not obligated to pay interest that accrues on a balance if that balance is paid in full prior to the expiration of a specified period of time is not a grace period for purposes of 1026.5(b)(2)(ii)(B). Florida Real Estate Practice Exam Flashcards | Quizlet 1026.43 Minimum standards for transactions secured by a dwelling. 1637(c)(4)(D)) contains rules pertaining to charge card issuers with plans that allow access to an open-end credit plan that is maintained by a person other than the charge card issuer. A consumer does not use the account by activating the account. and plan your strategy. i. A consumer uses an account by obtaining an extension of credit after receiving the account-opening disclosures, such as by making a purchase or obtaining an advance. Homestead Rights in Illinois and the Non-Titleholding Spouse Dilemma Abby, Bob, and Cathy were co-owners of a parcel of real property. (i) Statement required. The Residential Property Disclosure Act (G.S. May be used only until the supply of outdated forms is exhausted. 1026.33 Requirements for reverse mortgages. If you are doing a FSBO listing, the responsibility to research and follow through on disclosures falls on you. Florida case law provides that, with some exceptions, a home seller must disclose any facts or conditions about the property that have a substantial impact on its value or desirability and that others cannot easily see for themselves. The creditor may, however, be required to provide a new disclosure(s) under 1026.9(c). See interpretation of 5(b)(2)(ii) Timing Requirements in Supplement I. How Accurate Is My Zestimate, and Can I Influence It? Application of 1026.5(b)(2)(ii) to charge card and charged-off accounts. What type of listing is this? When most of the facts and circumstances listed below are present, the substitution or replacement likely constitutes the opening of a new account for which 1026.6(b) disclosures are appropriate. 515B). Homeowners' Energy Policy Statement Act, 765 ILCS 165/1, et seq. He has registered the trade name Fast Sales. ii. Estimates redisclosure. (viii) Certain disclosures provided when a rate is increased due to delinquency, default or as a penalty must be provided in a tabular format in accordance with the requirements of 1026.9(g)(3)(ii). A homestead exemption reduces the amount of property taxes homeowners owe on their legal residence. 4. What is the cost per square foot of the property? ii. What is the description of the township located due east of T3N, R2W? YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE ASSOCIATION. Disclosures that need not be provided in writing under 1026.5(a)(1)(ii)(A) may be provided in writing, orally, or in electronic form. Selling a Florida Home: What Are My Disclosure Obligations? Use of inserts. :The Act was enacted to protect the public health, safety, and welfare by encouraging the development and use of solar energy systems and prevent the adoption of measures that prevent the use of solar energy systems on any home that is subject to a homeowners' association, common interest community association, or . If the creditor makes estimated disclosures, redisclosure is not required for that consumer, even though more accurate information becomes available before the first transaction. These less common disclosures can vary by state, but in general, theyre not as common and often fall outside of the real property qualification. One of the best ways to avoid disclosure issues is to use an experienced real estate agent. (v) Certain disclosures provided on periodic statements must be given in accordance with the requirements of 1026.7(b)(12). Arizona Department of Housing - The agency offers foreclosure aid to Arizona homeowners helping with mortgage, taxes, and homeowner's association (HOA) fees. Furthermore, the prohibition in 1026.5(b)(2)(ii)(B)(1)(ii) applies only during the 21-day period following mailing or delivery of the periodic statement and applies only when the creditor receives a payment within that 21-day period that satisfies the terms of the grace period. What Makes a Good Real Estate Agent for Home Sellers, How to Sell a House As-Is When It Needs Repairs, Do Not Sell or Share My Personal Information, 442-H New York Standard Operating Procedures. Replacement as a result of theft or unauthorized use. For example, assume a consumer responds to a card issuer's solicitation for a credit card account subject to 1026.60 that offers a range of balance transfer annual percentage rates, based on the consumer's creditworthiness. 47E) ("Disclosure Act") requires owners of residential real estate (single-family homes, individual condominiums, townhouses, and the like, and buildings with up to four dwelling units) to furnish buyers Residential Property and Owners' Association Disclosure Statement ("Disclosure Statement"). A creditor that permits consumers to withdraw the request by telephone has met this timing standard if the creditor does not effect the balance transfer until 10 days after the creditor has sent account-opening disclosures to the consumer, assuming the consumer has not contacted the creditor to withdraw the request. Card issuer and person extending credit not the same person. If credit insurance or debt cancellation or debt suspension coverage is required as part of the plan, the term required shall be used and the program shall be identified by its name. Assume that, for a credit card account under an open-end (not home-secured) consumer credit plan, a periodic statement mailed on April 4 states that a required minimum periodic payment of $50 is due on April 25. The terms need not be more conspicuous when used for periodic statement disclosures under 1026.7(a)(4) and for advertisements under 1026.16. 2. No matter how great a home looks at first glance, a host of problems could be hiding right under that fresh coat of paintwhich is why buyers will want to scrutinize certain . If the consumer receives a cash advance check at the same time the account-opening disclosures are provided, disclosures are still timely if the consumer can, after receiving the disclosures, return the cash advance check to the creditor without obligation (for example, without paying finance charges). (vi) Certain disclosures accompanying checks that access a credit card account must be provided in a tabular format in accordance with the requirements of 1026.9(b)(3). Because 1026.7(b)(11)(ii) provides that 1026.7(b)(11)(i) does not apply to periodic statements provided solely for charge card accounts other than covered separate credit features that are charge card accounts accessible by hybrid prepaid-credit cards as defined in 1026.61, 1026.5(b)(2)(ii)(A)(1) also does not apply to the mailing or delivery of periodic statements provided solely for such accounts. If your disclosure statement includes lead paint, make sure the disclosures are signed, and keep copies for at least three years. Please seek the services of a legal, accounting or real estate professional prior to any real estate transaction. (B) Open-end consumer credit plans. Chapter 11_Quizzes Flashcards | Chegg.com 4. The statute of frauds does NOT apply to which contract? (See the commentary to 1026.17 on converting open-end credit to closed-end credit.). Which remedy for breach of contract requests that the courts award damages for the extent of loss suffered? When few of the facts and circumstances listed below are present, the substitution or replacement likely constitutes a change in the terms of an existing account for which 1026.9(c)(2) disclosures are appropriate. The referring tenants do not hold a real estate licensees. There are surprisingly few federal regulations related to real estate disclosure. Which disclosure notice must be signed by the buyer and seller prior to implementation? Disclose everything, even if it seems minor. 1026.36 Prohibited acts or practices and certain requirements for credit secured by a dwelling. The operating expenses for this property, including a $4,400 reserve for replacements, total $176,000. Nothing in this chapter shall preclude a seller from using a form of property disclosure statement that contains additional provisions that require greater specificity or that call . If any information necessary for accurate disclosure is unknown to the creditor, it shall make the disclosure based on the best information reasonably available and shall state clearly that the disclosure is an estimate. Section 127(c)(4)(D) of the Truth in Lending Act (15 U.S.C. Section 1026.5(b)(2)(ii)(B)(1) does not apply to charge card accounts because, for purposes of 1026.5(b)(2)(ii)(B), a grace period is a period within which any credit extended may be repaid without incurring a finance charge due to a periodic interest rate and, consistent with 1026.2(a)(15)(iii), charge card accounts do not impose a finance charge based on a periodic rate. Which type of income is used to derive a gross income multiplier? If an account has been closed (for example, due to inactivity, cancellation, or expiration) and then is reopened, new account-opening disclosures are required. See interpretation of 5(b)(2) Periodic Statements in Supplement I. Which statement is false regarding homeowners association disclosure Return policies need not provide a right to return goods if the consumer consumes or damages the goods, or for installed appliances or fixtures, provided there is a reasonable repair or replacement policy to cover defective goods or installations. 1. You can also apply $10,000 of any unused portion of the homestead exemption towards any property you own using a " wildcard exemption ." For example, let's say your house is worth $100,000. A creditor may collect, or obtain the consumer's agreement to pay, membership fees, including application fees excludable from the finance charge under 1026.4(c)(1), before providing account-opening disclosures if, after receiving the disclosures, the consumer may reject the plan and have no obligation to pay these fees (including application fees) or any other fee or charge. 2. - If spouse and no children. 1. It's governed by different laws. Termination of draw privileges. Here are a few examples, but again, be sure to check your own state laws: Disclosure laws are designed to protect buyers from purchasing a home with serious flaws and to protect sellers from future legal ramifications. iii. 2. Accordingly, 1026.5(b)(2)(ii)(B)(1)(i) requires the creditor to have reasonable procedures designed to ensure that the periodic statement reflecting the $500 balance is mailed or delivered on or before May 4. Seller disclosure laws exist at both federal and state levels which is why its important to understand your specific obligations before completing a generic real estate disclosure. (A) The first transaction occurs when a consumer contacts a merchant by telephone to purchase goods and at the same time the consumer accepts an offer to finance the purchase by establishing an open-end plan with the merchant or third-party creditor; (B) The merchant or third-party creditor permits consumers to return any goods financed under the plan and provides consumers with a sufficient time to reject the plan and return the goods free of cost after the merchant or third-party creditor has provided the written disclosures required by 1026.6; and. However, if a consumer rejects the plan after receiving account-opening disclosures, the consumer must have no obligation to pay such an application fee, or if the fee was paid, it must be refunded. Appendix A to Part 1026 Effect on State Laws, Appendix B to Part 1026 State Exemptions, Appendix C to Part 1026 Issuance of Official Interpretations, Appendix D to Part 1026 Multiple Advance Construction Loans, Appendix E to Part 1026 Rules for Card Issuers That Bill on a Transaction-by-Transaction Basis, Appendix F to Part 1026 Optional Annual Percentage Rate Computations for Creditors Offering Open-End Credit Plans Secured by a Consumer's Dwelling, Appendix G to Part 1026 Open-End Model Forms and Clauses, Appendix H to Part 1026 Closed-End Model Forms and Clauses, Appendix J to Part 1026 Annual Percentage Rate Computations for Closed-End Credit Transactions, Appendix K to Part 1026 Total Annual Loan Cost Rate Computations for Reverse Mortgage Transactions, Appendix L to Part 1026 Assumed Loan Periods for Computations of Total Annual Loan Cost Rates, Appendix M1 to Part 1026 Repayment Disclosures, Appendix M2 to Part 1026 Sample Calculations of Repayment Disclosures, Appendix N to Part 1026 Higher-Priced Mortgage Loan Appraisal Safe Harbor Review, Appendix O to Part 1026 Illustrative Written Source Documents for Higher-Priced Mortgage Loan Appraisal Rules, Comment for 1026.1 - Authority, Purpose, Coverage, Organization, Enforcement and Liability, Comment for 1026.2 - Definitions and Rules of Construction, Comment for 1026.5 - General Disclosure Requirements, Comment for 1026.6 - Account-Opening Disclosures, Comment for 1026.8 - Identifying Transactions on Periodic Statements, Comment for 1026.9 - Subsequent Disclosure Requirements, Comment for 1026.11 - Treatment of Credit Balances; Account Termination, Comment for 1026.12 - Special Credit Card Provisions, Comment for 1026.13 - Billing Error Resolution, Comment for 1026.14 - Determination of Annual Percentage Rate, Comment for 1026.15 - Right of Rescission, Comment for 1026.17 - General Disclosure Requirements, Comment for 1026.18 - Content of Disclosures, Comment for 1026.19 - Certain Mortgage and Variable-Rate Transactions, Comment for 1026.20 Disclosure Requirements Regarding Post-Consummation Events, Comment for 1026.21 - Treatment of Credit Balances, Comment for 1026.22 - Determination of Annual Percentage Rate, Comment for 1026.23 - Right of Rescission, Comment for 1026.26 - Use of Annual Percentage Rate in Oral Disclosures, Comment for 1026.27 - Language of Disclosures, Comment for 1026.28 - Effect on State Laws, Comment for 1026.30 - Limitation on Rates, Comment for 1026.32 - Requirements for High-Cost Mortgages, Comment for 1026.33 - Requirements for Reverse Mortgages, Comment for 1026.34 - Prohibited Acts or Practices in Connection With High-Cost Mortgages, Comment for 1026.35 - Requirements for Higher-Priced Mortgage Loans, Comment for 1026.36 - Prohibited Acts or Practices and Certain Requirements for Credit Secured by a Dwelling, Comment for 1026.37 - Content of Disclosures for Certain Mortgage Transactions (Loan Estimate), Comment for 1026.38 - Content of Disclosures for Certain Mortgage Transactions (Closing Disclosure), Comment for 1026.39 - Mortgage Transfer Disclosures, Comment for 1026.40 - Requirements for Home-Equity Plans, Comment for 1026.41 - Periodic Statements for Residential Mortgage Loans, Comment for 1026.42 - Valuation Independence, Comment for 1026.43 - Minimum Standards for Transactions Secured by a Dwelling, Comment for 1026.46 - Special Disclosure Requirements for Private Education Loans, Comment for 1026.47 - Content of Disclosures, Comment for 1026.48 - Limitations on Private Education Loans, Comment for 1026.52 - Limitations on Fees, Comment for 1026.53 - Allocation of Payments, Comment for 1026.54 - Limitations on the Imposition of Finance Charges, Comment for 1026.55 - Limitations on Increasing Annual Percentage Rates, Fees, and Charges, Comment for 1026.56 - Requirements for Over-the-Limit Transactions, Comment for 1026.57 - Reporting and Marketing Rules for College Student Open-End Credit, Comment for 1026.58 - Internet Posting of Credit Card Agreements, Comment for 1026.59 - Reevaluation of Rate Increases, Comment for 1026.60 - Credit and Charge Card Applications and Solicitations, Comment for 1026.61 - Hybrid Prepaid-Credit Cards, Comment for Appendix A - Effect on State Laws, Comment for Appendix B - State Exemptions, Comment for Appendix C - Issuance of Official Interpretations, Comment for Appendix D - Multiple-Advance Construction Loans, Comment for Appendix F - Optional Annual Percentage Rate Computations for Creditors Offering Open-End Credit Plans Secured by a Consumer's Dwelling, Comment for Appendix G - Open-End Model Forms and Clauses, Appendices G and H - Open-End and Closed-End Model Forms and Clauses, Comment for Appendix H - Closed-End Forms and Clauses, Comment for Appendix J - Annual Percentage Rate Computations for Closed-End Credit Transactions, Comment for Appendix K - Total Annual Loan Cost Rate Computations for Reverse Mortgage Transactions, Comment for Appendix L - Assumed Loan Periods for Computations of Total Annual Loan Cost Rates, Comment for Appendix O - Illustrative Written Source Documents for Higher-Priced Mortgage Loan Appraisal Rules. Similarly, although 1026.5(b)(2)(ii)(B)(2) applies to open-end consumer credit accounts in these circumstances, 1026.5(b)(2)(ii)(B)(2)(ii) does not prohibit a creditor from continuing treating prior payments as late during the 14-day period following mailing or delivery of a periodic statement. (2) The card issuer does not treat as late for any purpose a required minimum periodic payment received by the card issuer within 21 days after mailing or delivery of the periodic statement disclosing the due date for that payment. When changes in a creditor's plan affect required disclosures, the creditor may use inserts with outdated disclosure forms. Periodic statements not required. In the case of lead-based paint, per federal law, the buyer gets another 10 days to test, regardless of the state contingency period. B. Learn more, .subnav-back-arrow-st0{fill:none;stroke:#0074E4;stroke-linecap:round;} The trademarks MLS, Multiple Listing Service and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. These rules are not implemented in Regulation Z (although they were formerly implemented in 1026.60(f)). The disclosures required by 1026.60, 1026.40, and 1026.16 may be provided to the consumer in electronic form without regard to the consumer consent or other provisions of the E-Sign Act in the circumstances set forth in those sections. In using estimates, the creditor is not required to disclose the basis for the estimated figures, but may include such explanations as additional information. The new laws include two assembly bills, AB 1101 and AB 502, and three senate bills, SB 391, SB 392, and SB 432. The fact that a term or contract may later be deemed unenforceable by a court on the basis of equity or other grounds does not, by itself, mean that disclosures based on that term or contract did not reflect the legal obligation. 1026.8 Identifying transactions on periodic statements. 1. Creditors offering home-equity plans subject to the requirements of 1026.40 are not subject to the requirements of paragraph (b)(1)(iv)(A) of this section. NC Residential Property Disclosure - HUTCHENS LAW FIRM However, if the creditor receives a payment of $300 on April 25, 1026.5(b)(2)(ii)(B)(1)(ii) would not prohibit the creditor from imposing finance charges as a result of the loss of the grace period (to the extent permitted by 1026.54). Instituting collection proceedings. Arizona HOA Laws, Rules, and Information - Homeowners Protection Bureau See 1026.5(b)(1)(iv)(A). 4. Charges that are imposed as part of an open-end (not home-secured) plan and are not required to be disclosed under 1026.6(b)(2) may be disclosed after account opening but before the consumer agrees to pay or becomes obligated to pay for the charge, provided they are disclosed at a time and in a manner that a consumer would be likely to notice them. The only law that's applicable across all 50 states is the requirement to disclose the presence of lead paint. (ii) Charges imposed as part of an open-end (not home-secured) plan. There are only a few federally mandated disclosures, but overall, disclosure requirements fall under state law, and the requirements vary state by state. Zillow Group is committed to ensuring digital accessibility for individuals with disabilities. Events causing inaccuracies. 1026.40 Requirements for home equity plans. At the creditor's option, finance charge and annual percentage rate may also be disclosed more conspicuously than the other required disclosures even when the regulation does not so require. Heres what you need to know: On the books in most states, youll find laws related to seller requirements in disclosing what they call material facts about the home theyre selling. The property disclosure process is only skipped in rare cases. Gifting or transferring of a property, usually between relatives, Business transfers, usually in cases where two or more investors co-own a rental property. Any person or group of persons occupying a separate housing space is defined by the U.S. Census Bureau as a, The interest on an assumed mortgage is entered on the closing statement as a. debit to the seller and a credit to the buyer. If the creditor adjusts an account balance so that at the end of the cycle the balance is less than $1 - so long as no finance charge has been imposed on the account for that cycle. 3. Examples include: i. Combined Exan REE 1000 Flashcards | Chegg.com Even after closing, you may be required to go back and pay for repairs on the property related to the known defect. Disclosures may be made to either obligor on a joint account. Please switch to a supported browser or download one of our Mobile Apps. Which statement is FALSE regarding homeowners association disclosure requirements? Information is unknown if it is not reasonably available to the creditor at the time disclosures are made. The FREC's authority to impose discipline falls under what area of responsibility? Abby was a. Inaccuracies in disclosures are not violations if attributable to events occurring after disclosures are made. For accounts under an open-end consumer credit plan, a creditor must adopt reasonable procedures designed to ensure that: (1) If a grace period applies to the account: (i) Periodic statements are mailed or delivered at least 21 days prior to the date on which the grace period expires; and. If the creditor opens an account for the consumer, the creditor would comply with the timing rules of this section by providing the consumer with the annual percentage rate (along with the fees and other required disclosures) that would apply to the balance transfer in time for the consumer to contact the creditor and withdraw the request. Which statement concerning Department if Veteran's Affairs (VA) mortgage loans is FALSE? While you must disclose all defects and issues you know exist in your home, you dont have to go searching for problems if you dont know an issue exists, you dont have to disclose it. (See commentary to 1026.5(b)(1)(iii) below.). The only law thats applicable across all 50 states is the requirement to disclose the presence of lead paint. i. (e) Effect of subsequent events. For example, if a consumer telephones a card issuer to discuss a particular service, a creditor would meet the standard if the creditor clearly and conspicuously discloses the fee associated with the service that is the topic of the telephone call orally to the consumer. Which action does NOT terminate a single-agent brokerage relationship with the seller? NW-1/4 of SW-1/4 and SE-1/4 of NE-1/4 of Section 6. Reopening closed account. 1026.46 Special disclosure requirements for private education loans. ii. The card issuer shall furnish the disclosures for credit and charge card applications and solicitations in accordance with the timing requirements of 1026.60. See 1026.60(b)(2) and related commentary for guidance on fees for issuance or availability of a credit or charge card. A standard disclosure statement that includes anything related to the condition of the property, like HVAC, gutters, appliances, windows, sump pumps, garage doors and more, Environmental hazards like asbestos or gas leaks, Walls, fences or driveways that are shared with other property owners, as well as information on easements on the property, Renovations made without permits or renovations that are not up to code, A natural hazard disclosure statement, for things like earthquake faults, drainage issues or past flooding, A death on the property within three years (if a buyer directly asks about a death on the property, no matter how long ago it occurred, be honest about what you know).
