Question 1

Choose the one most appropriate answer for each.
-money paid for the privilege of having an option

Accepted Answer

A) "as is" 
B) bill of sale 
C) binder 
D) closing date 
E) delayed exchange
F)dry rot
G)earnest money deposit
H)equitable title
I)installment contract
J)lease-option
K)letter of intent
L)loan commitment
M)optionee
N)option fee
O)prorating
P)purchase contract
Q)qualified intermediary
R)right of first refusal
S)"time is of the essence"
T)vendee 
A) "as is" 
B) bill of sale 
C) binder 
D) closing date 
E) delayed exchange
F)dry rot
G)earnest money deposit
H)equitable title
I)installment contract
J)lease-option
K)letter of intent
L)loan commitment
M)optionee
N)option fee
O)prorating
P)purchase contract
Q)qualified intermediary
R)right of first refusal
S)"time is of the essence"
T)vendee N

Question 2

What should a salesperson do if he receives a second bona fide offer after one offer has already been submitted to the seller but not yet accepted or rejected?

Accepted Answer

A)  Allow the first purchaser to meet the second offer before submitting it 
B)  Hold the second offer until a decision is made on the first offer 
C)  Submit the second offer immediately 
D)  Submit the second offer only if it is better than the first 
A)  Allow the first purchaser to meet the second offer before submitting it 
B)  Hold the second offer until a decision is made on the first offer 
C)  Submit the second offer immediately 
D)  Submit the second offer only if it is better than the first C

Question 3

If title to real property remains in the seller's name after it is sold on an installment payment plan, the buyer would have purchased it under

Accepted Answer

A)  an FHA mortgage. 
B)  a conventional mortgage. 
C)  a contract for deed. 
D)  a VA loan. 
A)  an FHA mortgage. 
B)  a conventional mortgage. 
C)  a contract for deed. 
D)  a VA loan. C

Question 4

The legal grace period in an option to purchase real estate is how long?

Accepted Answer

A)  72 hours 
B)  5 days 
C)  30 days 
D)  There is no grace period 
A)  72 hours 
B)  5 days 
C)  30 days 
D)  There is no grace period

Question 5

The most time consuming item in carrying out the terms of the purchase contract is the termite inspection.

Accepted Answer

A) True 
 B)False

Question 6

The vendor holds legal title to real property when a land sales contract has been entered into between the seller of the property and a buyer.

Accepted Answer

A) True 
 B)False

Question 7

When buying property under a land sales contract, which of the following does the buyer receive immediately?

Accepted Answer

A)  Possession 
B)  Title 
C)  Encumbrances 
D)  Estate in fee simple 
A)  Possession 
B)  Title 
C)  Encumbrances 
D)  Estate in fee simple

Question 8

The process of dividing ongoing expenses and income items as of the closing date is called

Accepted Answer

A)  prorating. 
B)  "as is" basis. 
C)  closing. 
D)  arbitrating. 
A)  prorating. 
B)  "as is" basis. 
C)  closing. 
D)  arbitrating.

Question 9

On a land sales contract, the seller must have marketable title for the property when the contract is recorded.

Accepted Answer

A) True 
 B)False

Question 10

Under a(n)____________________ contract, the buyer has a right to purchase the property but with no obligation to do so.

Accepted Answer

The answer of Under a(n)____________________ contract, the buyer has a...

Question 11

The rejection of even the smallest portion of an offer is a rejection of the entire offer.

Accepted Answer

A) True 
 B)False

Question 12

Choose the one most appropriate answer for each.
-expresses a mutual intention to buy, sell, lease, develop, or invest without creating any firm obligation

Accepted Answer

A) "as is" 
B) bill of sale 
C) binder 
D) closing date 
E) delayed exchange
F)dry rot
G)earnest money deposit
H)equitable title
I)installment contract
J)lease-option
K)letter of intent
L)loan commitment
M)optionee
N)option fee
O)prorating
P)purchase contract
Q)qualified intermediary
R)right of first refusal
S)"time is of the essence"
T)vendee 
A) "as is" 
B) bill of sale 
C) binder 
D) closing date 
E) delayed exchange
F)dry rot
G)earnest money deposit
H)equitable title
I)installment contract
J)lease-option
K)letter of intent
L)loan commitment
M)optionee
N)option fee
O)prorating
P)purchase contract
Q)qualified intermediary
R)right of first refusal
S)"time is of the essence"
T)vendee

Question 13

When a property is optioned, the optionor is the

Accepted Answer

A)  buyer. 
B)  vendor. 
C)  owner. 
D)  lessee. 
A)  buyer. 
B)  vendor. 
C)  owner. 
D)  lessee.

Question 14

A lease-option allows a tenant to buy a property at a preset price and terms during the option period.

Accepted Answer

A) True 
 B)False

Question 15

During the period beginning with the buyer and seller signing the contract and the seller delivering the deed, the buyer is said to hold "equitable title" to the property.

Accepted Answer

A) True 
 B)False

Question 16

Choose the one most appropriate answer for each.
-also known as a conditional sales contract, land contract, contract for deed, or agreement of sale

Accepted Answer

A) "as is" 
B) bill of sale 
C) binder 
D) closing date 
E) delayed exchange
F)dry rot
G)earnest money deposit
H)equitable title
I)installment contract
J)lease-option
K)letter of intent
L)loan commitment
M)optionee
N)option fee
O)prorating
P)purchase contract
Q)qualified intermediary
R)right of first refusal
S)"time is of the essence"
T)vendee 
A) "as is" 
B) bill of sale 
C) binder 
D) closing date 
E) delayed exchange
F)dry rot
G)earnest money deposit
H)equitable title
I)installment contract
J)lease-option
K)letter of intent
L)loan commitment
M)optionee
N)option fee
O)prorating
P)purchase contract
Q)qualified intermediary
R)right of first refusal
S)"time is of the essence"
T)vendee

Question 17

Choose the one most appropriate answer for each.
-the process of dividing ongoing expenses and income items

Accepted Answer

A) "as is" 
B) bill of sale 
C) binder 
D) closing date 
E) delayed exchange
F)dry rot
G)earnest money deposit
H)equitable title
I)installment contract
J)lease-option
K)letter of intent
L)loan commitment
M)optionee
N)option fee
O)prorating
P)purchase contract
Q)qualified intermediary
R)right of first refusal
S)"time is of the essence"
T)vendee 
A) "as is" 
B) bill of sale 
C) binder 
D) closing date 
E) delayed exchange
F)dry rot
G)earnest money deposit
H)equitable title
I)installment contract
J)lease-option
K)letter of intent
L)loan commitment
M)optionee
N)option fee
O)prorating
P)purchase contract
Q)qualified intermediary
R)right of first refusal
S)"time is of the essence"
T)vendee

Question 18

If two or more parties want to express their mutual intention to buy, sell, lease, develop, or invest, and wish to do so without creating any firm, legal obligation, they may use a ______________________________.

Accepted Answer

The answer of If two or more parties want to...

Question 19

Choose the one most appropriate answer for each.
-written evidence of the sale of personal property

Accepted Answer

A) "as is" 
B) bill of sale 
C) binder 
D) closing date 
E) delayed exchange
F)dry rot
G)earnest money deposit
H)equitable title
I)installment contract
J)lease-option
K)letter of intent
L)loan commitment
M)optionee
N)option fee
O)prorating
P)purchase contract
Q)qualified intermediary
R)right of first refusal
S)"time is of the essence"
T)vendee 
A) "as is" 
B) bill of sale 
C) binder 
D) closing date 
E) delayed exchange
F)dry rot
G)earnest money deposit
H)equitable title
I)installment contract
J)lease-option
K)letter of intent
L)loan commitment
M)optionee
N)option fee
O)prorating
P)purchase contract
Q)qualified intermediary
R)right of first refusal
S)"time is of the essence"
T)vendee

Question 20

A rider is any addition annexed to a document and made a part of the document by reference is also known as a(n)____________________ or a(n)____________________.

Accepted Answer

addendum,

Exam 7: Real Estate Sales Contracts

Choose the one most appropriate answer for each. -money paid for the privilege of having an option

What should a salesperson do if he receives a second bona fide offer after one offer has already been submitted to the seller but not yet accepted or rejected?

If title to real property remains in the seller's name after it is sold on an installment payment plan, the buyer would have purchased it under

The legal grace period in an option to purchase real estate is how long?

The most time consuming item in carrying out the terms of the purchase contract is the termite inspection.

The vendor holds legal title to real property when a land sales contract has been entered into between the seller of the property and a buyer.

When buying property under a land sales contract, which of the following does the buyer receive immediately?

The process of dividing ongoing expenses and income items as of the closing date is called

On a land sales contract, the seller must have marketable title for the property when the contract is recorded.

Under a(n)____________________ contract, the buyer has a right to purchase the property but with no obligation to do so.

The rejection of even the smallest portion of an offer is a rejection of the entire offer.

Choose the one most appropriate answer for each. -expresses a mutual intention to buy, sell, lease, develop, or invest without creating any firm obligation

When a property is optioned, the optionor is the

A lease-option allows a tenant to buy a property at a preset price and terms during the option period.

During the period beginning with the buyer and seller signing the contract and the seller delivering the deed, the buyer is said to hold "equitable title" to the property.

Choose the one most appropriate answer for each. -also known as a conditional sales contract, land contract, contract for deed, or agreement of sale

Choose the one most appropriate answer for each. -the process of dividing ongoing expenses and income items

If two or more parties want to express their mutual intention to buy, sell, lease, develop, or invest, and wish to do so without creating any firm, legal obligation, they may use a ______________________________.

Choose the one most appropriate answer for each. -written evidence of the sale of personal property

A rider is any addition annexed to a document and made a part of the document by reference is also known as a(n)____________________ or a(n)____________________.

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Mortgage and Note

Deed of Trust

Lending Practices

The Loan and the Consumer

Sources of Financing

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Property Insurance

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

Filters

A rider is any addition annexed to a document and made a part of the document by reference is also known as a(n) or a(n).