Examples:

• • Tom’s lawyer flagged an unfavorable financing clause before signing.
  • When the seller disagreed on repairs, Sarah’s attorney negotiated a credit.
  • A title search revealed Bob’s future home had an undisclosed road easement.
  • Coordinating closing, Jill’s lawyer ensured all docs were signed and filed.
  • After Nicole’s seller failed to fix a major leak, her attorney threatened suit.

How to Proceed:

• • Request attorney referrals from your realtor, lender or title company.
  • Interview multiple lawyers to assess communication style and expertise.
  • Retain counsel early, before signing any binding contracts or disclosures.
  • Budget for legal fees as part of your overall home-buying expenses.
  • Keep your attorney apprised of all developments in the transaction.

FAQs:

• • Is a real estate lawyer required in California? No, but highly advised for first-time buyers.
  • How much do real estate attorneys charge? Varies, but typically $200-500/hour.
  • When should I involve a real estate lawyer? Before signing any purchase contracts.
  • What if I can’t afford an attorney? Forgoing counsel is riskier than the upfront cost.
  • Will my attorney attend the closing? Usually not in person, but available if issues arise.

Examples:

• • Megan’s home inspection uncovered a leaky roof needing $15k in repairs.
  • Termite damage found in John’s future home required tenting and treatment.
  • A sewer line inspection saved Emily from buying a home with major plumbing issues.
  • Living near fields, a mineral rights search gave Sam peace of mind.
  • High wildfire risk made insurance costly for the mountain cabin Laura wanted.

How to Proceed:

• • Include an inspection contingency in your purchase offer.
  • Hire licensed professionals experienced in the property type.
  • Attend inspections in person to ask questions and see issues firsthand.
  • Obtain written reports detailing findings with photos.
  • Use concerning discoveries to renegotiate price or repairs.

FAQs:

• • How much do property inspections cost? $300-1000 total depending on property.
  • Who pays for inspections? Usually the buyer, sometimes split with seller.
  • What if inspections reveal problems? Renegotiate or cancel per contingency.
  • Should I waive inspections to win a bidding war? Not advised for first-time buyers.
  • Can the seller refuse inspections? Yes, but raises red flags about conditions.

Examples:

• • The TDS on David’s condo noted past plumbing leak damage.
  • High fire risk required Kim to clear defensible space around her new home.
  • Built in 1950, Jeff’s house needed a lead paint review and remediation.
  • Liz appreciated knowing a sex offender lived six blocks from her future home.
  • Radon testing appeared in the supplement for Will’s property.

How to Proceed:

• • Obtain all disclosures from the seller as early as possible.
  • Read each one thoroughly, not just what’s marked “yes.”
  • Follow up on any concerning revelations with more questions.
  • Assume any issues will become your responsibility to remediate.
  • Cancel the purchase if disclosures unveil deal-breaker problems.

FAQs:

• • What if the seller lies on disclosures? Could be grounds for later legal claims.
  • Do I need to provide disclosures as a buyer? No, only the seller does.
  • What’s the seller disclosure deadline? Before accepting your purchase offer.
  • Do disclosures replace inspections? No, inspections still needed for full picture.
  • What if I don’t receive disclosures? Don’t close – insist on compliance first.

Examples:

• • An owner’s policy shielded Kevin when the seller’s ex sued claiming partial ownership.
  • Dawn’s title report revealed an old mechanic’s lien needing resolution.
  • For her older home, enhanced coverage gave Stacey peace of mind against the unknown.
  • Guaranteed replacement cost insurance spared no expense rebuilding after Ben’s fire.
  • Qualifying for multi-policy discounts, Gina saved 20% insuring under one carrier.

How to Proceed:

• • Select an experienced title insurance provider via your attorney or lender.
  • Review the preliminary title report with your lawyer for concerning exceptions.
  • Choose enhanced coverage if the property has unique characteristics.
  • Ensure adequate dwelling coverage based on current construction costs.
  • Explore multi-policy options to maximize premium savings.

FAQs:

• • Is title insurance required? Lenders mandate it, owners policies optional but wise.
  • How long does title insurance last? Protects your ownership for as long as you have the property.
  • What does title insurance cost? Usually 0.5-1% of the home purchase price.
  • Is title insurance tax-deductible? No, it’s a non-deductible personal expense.
  • Do I need title insurance for a condo? Yes, plus the HOA should have a master policy.

• • • 1. Which professional is most important to involve when buying your first California home?
      A) Home inspector
      B) Mortgage lender
      C) Real estate attorney
      D) Title insurance rep
    • 2. When should you retain a real estate lawyer?
      A) After your offer is accepted
      B) Before signing any purchase contracts
      C) Only if a legal dispute arises
      D) At the closing
    • 3. How can a real estate attorney assist during a home purchase?
      A) Reviewing contracts and disclosures
      B) Conducting title searches
      C) Negotiating repairs or credits
      D) All of the above
    • 4. Which inspection is legally required for properties with mineral rights in California?
      A) Pest inspection
      B) Sewer line inspection
      C) Oil and gas well search
      D) Mold inspection
    • 5. What should you do if a home inspection reveals significant issues?
      A) Ignore them and proceed with the purchase
      B) Use the findings to renegotiate price or repairs
      C) Automatically cancel the contract
      D) Sue the seller for non-disclosure
    • 6. Which statement is true about California seller disclosure requirements?
      A) Sellers can choose what to disclose
      B) Buyers provide disclosures, not sellers
      C) Disclosures are optional for newer homes
      D) Sellers must reveal known material facts
    • 7. When must the Natural Hazard Disclosure be provided?
      A) Before the buyer makes an offer
      B) Within 5 days of accepting the offer
      C) Prior to closing
      D) After the deed is recorded
    • 8. What should you do if you don’t receive the Seller Disclosures?
      A) Assume the property has no issues
      B) Proceed with the closing
      C) Insist on compliance before closing
      D) Waive your right to receive them
    • 9. What does an Owner’s Title Insurance policy protect against?
      A) Third-party ownership claims
      B) Fire damage
      C) Earthquake losses
      D) Flood destruction
    • 10. How long does title insurance coverage last?
      A) 1 year
      B) 5 years
      C) 10 years
      D) As long as you own the property
    • 11. What is the main benefit of obtaining enhanced title insurance instead of standard?
      A) Lower price
      B) Covers more property defect risks
      C) Insures the lender
      D) Required by law
    • 12. How can you save money on homeowners insurance premiums?
      A) Choose the lowest coverage limits
      B) Opt for a high deductible
      C) Bundle with your auto policy
      D) Waive liability protection
    • 13. Which professionals can recommend reputable title insurers?
      A) Real estate agent
      B) Mortgage lender
      C) Real estate attorney
      D) All of the above
    • 14. What crucial step helps avoid unexpected title defects?
      A) Reviewing the preliminary title report
      B) Waiving the title contingency
      C) Choosing the cheapest title insurer
      D) Skipping the owner’s policy
    • 15. Which type of property might warrant enhanced title insurance?
      A) New construction home
      B) Bank-owned foreclosure
      C) Residence over 50 years old
      D) Condominium unit
    • 16. How can you ensure sufficient homeowners insurance dwelling coverage?
      A) Choose the lowest deductible
      B) Insure for the mortgage amount
      C) Obtain guaranteed replacement cost
      D) Exclude personal property
    • 17. What initial document should you obtain from the seller to assess any property red flags?
      A) Appraisal report
      B) Home warranty plan
      C) Previous insurance claims
      D) Preliminary title report
    • 18. Which natural hazard is the seller legally required to disclose?
      A) Tornado risk
      B) Hail exposure
      C) Earthquake zones
      D) Sinkhole potential
    • 19. What does the Megan’s Law Database Disclosure include?
      A) Location of registered sex offenders
      B) Previous crime incidents on the property
      C) Existing security systems
      D) Identity of problematic neighbors
    • 20. If a home was built before 1978, which disclosure is mandatory?
      A) Asbestos
      B) Lead-based paint
      C) Radon
      D) Mold
    • 21. Why is it important to read the seller disclosures thoroughly?
      A) To identify any concerning issues
      B) To waive your inspection rights
      C) To extend the contingency period
      D) To qualify for a mortgage
    • 22. What recourse do you have if the seller lies on a disclosure?
      A) Grounds for future legal claims
      B) Automatic contract termination
      C) Doubled purchase price
      D) Nothing, disclosures aren’t binding
    • 23. What is the main purpose of a home inspection?
      A) To identify any major defects
      B) To appraise the property value
      C) To verify seller disclosure accuracy
      D) To qualify for insurance coverage
    • 24. Who typically pays for property inspections?
      A) The buyer
      B) The seller
      C) The real estate agents
      D) The mortgage lender
    • 25. What should you look for in an inspector?
      A) The lowest price
      B) A family member in the business
      C) Proper licensing and experience
      D) Affiliation with the seller’s agent
    • 26. Why is it risky to waive inspections?
      A) The seller might back out
      B) You could inherit costly problems
      C) The lender won’t approve your loan
      D) It voids the purchase contract
    • 27. What is the best approach if a seller refuses to allow inspections?
      A) Proceed anyway to avoid losing the home
      B) Offer to pay extra for the privilege
      C) Treat it as a red flag and reconsider
      D) Have your lawyer force access
    • 28. What comes first in the home-buying process?
      A) Finding a real estate agent
      B) Getting pre-approved for a mortgage
      C) Hiring a real estate attorney
      D) Identifying your target neighborhood
    • 29. When should you involve a real estate attorney?
      A) After you find a home you like
      B) When you’re ready to make an offer
      C) Before signing any contracts
      D) If a legal issue comes up later
    • 30. Which contingency should you include in your purchase offer?
      A) Seller cleaning the home
      B) Ability to paint before closing
      C) Satisfactory home inspection
      D) Friends and family approval
    • 31. What is the benefit of a preliminary title report?
      A) Guarantees clear title
      B) Identifies potential ownership issues
      C) Negates the need for title insurance
      D) Automatically clears any liens
    • 32. Which statement is true about the California Natural Hazard Disclosure?
      A) It’s optional for sellers to provide
      B) It only applies to properties in flood zones
      C) It reveals earthquake and wildfire risks
      D) It must be provided after closing
    • 33. What is the purpose of title insurance?
      A) To protect against third-party claims
      B) To guard against structural defects
      C) To verify property boundaries
      D) To guarantee a clear title
    • 34. What is a potential consequence of inadequate insurance coverage?
      A) Paying out of pocket for losses
      B) Automatic coverage increases
      C) Refunds of unused premiums
      D) Ability to switch insurers
    • 35. What is the main purpose of the Preliminary Title Report?
      A) To outline the title insurance policy
      B) To detail the property’s ownership history
      C) To guarantee a clear title
      D) To identify all neighborhood hazards
    • 36. What should be your top priority when buying your first home?
      A) Negotiating the lowest price
      B) Protecting your legal interests
      C) Closing as quickly as possible
      D) Minimizing paperwork
    • 37. Who can best advise you on the legal risks of a property?
      A) The seller’s agent
      B) The home inspector
      C) A real estate attorney
      D) The title company
    • 38. Which document should you review carefully for red flags?
      A) The seller’s marketing flyer
      B) The agent’s CMA report
      C) The statutory disclosures
      D) The loan estimate
    • 39. What is the smartest way to choose a real estate attorney?
      A) Select the cheapest one
      B) Pick a family friend
      C) Get referrals and interview several
      D) Use the seller’s attorney
    • 40. Which is the best approach to disclosures and inspections?
      A) Waive them to streamline the deal
      B) Conduct them before making an offer
      C) Rely solely on the seller’s assurances
      D) Use them to thoroughly vet the property
    • 41. What is a key benefit of title insurance for a homebuyer?
      A) Guarantees mortgage approval
      B) Pays for any repairs needed
      C) Protects your ownership rights
      D) Provides property tax reductions
    • 42. How can you best protect your interests during a home purchase?
      A) Representing yourself in negotiations
      B) Removing all contingencies
      C) Hiring experienced professionals
      D) Delaying inspections until after closing
    • 43. What should you do if a disclosure reveals a concerning issue?
      A) Ignore it if the home is in a desirable area
      B) Assume the seller will fix it before closing
      C) Investigate further and renegotiate if needed
      D) Threaten legal action against the seller
    • 44. Which is most important when making an offer on a home?
      A) Offering above the asking price
      B) Keeping contingencies to a minimum
      C) Proposing a long escrow period
      D) Protecting your interests with proper contingencies
    • 45. What should you consider when setting a closing date?
      A) Giving yourself enough time to review documents
      B) Accommodating the seller’s moving schedule
      C) Closing as quickly as possible
      D) Choosing a date that’s convenient for others
    • 46. Who typically pays for the owner’s title insurance policy?
      A) The buyer
      B) The seller
      C) The lender
      D) The escrow company
    • 47. What is the main benefit of a home warranty plan?
      A) Guarantees the home is free of defects
      B) Provides coverage for system breakdowns
      C) Eliminates the need for homeowners insurance
      D) Covers all pre-existing conditions
    • 48. How can you avoid delays in the closing process?
      A) Waiving all contingencies upfront
      B) Responding quickly to requests for information
      C) Skipping the final walk-through inspection
      D) Postponing the transfer of utilities
    • 49. What should you do in the final walk-through inspection?
      A) Verify agreed-upon repairs have been made
      B) Bring friends and family for opinions
      C) Measure rooms for future furniture
      D) Test the home’s security system
    • 50. What is the most important reason to hire a real estate attorney?
      A) To handle all communication with the seller
      B) To physically attend the closing
      C) To ensure your interests are protected
      D) To renegotiate the price after inspections
  • Answers:
    • • • 1: C) Real estate attorney
        • 2: B) Before signing any purchase contracts
        • 3: D) All of the above
        • 4: C) Oil and gas well search
        • 5: B) Use the findings to renegotiate price or repairs
        • 6: D) Sellers must reveal known material facts
        • 7: B) Within 5 days of accepting the offer
        • 8: C) Insist on compliance before closing
        • 9: A) Third-party ownership claims
        • 10: D) As long as you own the property
        • 11: B) Covers more property defect risks
        • 12: C) Bundle with your auto policy
        • 13: D) All of the above
        • 14: A) Reviewing the preliminary title report
        • 15: C) Residence over 50 years old
        • 16: C) Obtain guaranteed replacement cost
        • 17: D) Preliminary title report
        • 18: C) Earthquake zones
        • 19: A) Location of registered sex offenders
        • 20: B) Lead-based paint
        • 21: A) To identify any concerning issues
        • 22: A) Grounds for future legal claims
        • 23: A) To identify any major defects
        • 24: A) The buyer
        • 25: C) Proper licensing and experience
        • 26: B) You could inherit costly problems
        • 27: C) Treat it as a red flag and reconsider
        • 28: C) Hiring a real estate attorney
        • 29: C) Before signing any contracts
        • 30: C) Satisfactory home inspection
        • 31: B) Identifies potential ownership issues
        • 32: C) It reveals earthquake and wildfire risks
        • 33: A) To protect against third-party claims
        • 34: A) Paying out of pocket for losses
        • 35: B) To detail the property’s ownership history
        • 36: B) Protecting your legal interests
        • 37: C) A real estate attorney
        • 38: C) The statutory disclosures
        • 39: C) Get referrals and interview several
        • 40: D) Use them to thoroughly vet the property
        • 41: C) Protects your ownership rights
        • 42: C) Hiring experienced professionals
        • 43: C) Investigate further and renegotiate if needed
        • 44: D) Protecting your interests with proper contingencies
        • 45: A) Giving yourself enough time to review documents
        • 46: A) The buyer
        • 47: B) Provides coverage for system breakdowns
        • 48: B) Responding quickly to requests for information
        • 49: A) Verify agreed-upon repairs have been made
        • 50: C) To ensure your interests are protected