Question 1

Choose the one most appropriate answer for each.
-money that accompanies an offer to purchase as evidence of good faith

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 2

Choose the one most appropriate answer for each.
-an agreement by a lender to make a loan

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 3

A land sales contract passes

Accepted Answer

A)  the right to destroy the property. 
B)  equitable title. 
C)  legal title. 
D)  no interest whatsoever. 
A)  the right to destroy the property. 
B)  equitable title. 
C)  legal title. 
D)  no interest whatsoever.

Question 4

If the vendee is in default, the vendor

Accepted Answer

A)  cannot pursue the right of foreclosure. 
B)  is in title. 
C)  no longer has equitable title. 
D)  retains color of title. 
A)  cannot pursue the right of foreclosure. 
B)  is in title. 
C)  no longer has equitable title. 
D)  retains color of title.

Question 5

Which of the following is true of a land sales contract?

Accepted Answer

A)  Beneficiary holds naked legal title 
B)  Purchaser holds equitable title 
C)  Vendee holds full legal title 
D)  Mortgagor holds title 
A)  Beneficiary holds naked legal title 
B)  Purchaser holds equitable title 
C)  Vendee holds full legal title 
D)  Mortgagor holds title

Question 6

If a contract of sale is subject to the buyer's ability to secure a loan, and after diligent effort the buyer is unable to do so by the stated deadline, the

Accepted Answer

A)  contract would become void. 
B)  contract would be voidable by the seller only. 
C)  buyer must be allowed additional time to meet the condition. 
D)  contract would be voidable by the buyer. 
A)  contract would become void. 
B)  contract would be voidable by the seller only. 
C)  buyer must be allowed additional time to meet the condition. 
D)  contract would be voidable by the buyer.

Question 7

Choose the one most appropriate answer for each.
-a short-form purchase contract to hold a real estate transaction together until a more formal contract can be prepared an designed

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 8

A _________________________ allows the tenant to buy the property at a preset price for a given period of time.

Accepted Answer

The answer of A _________________________ allows the tenant to buy...

Question 9

After the buyer signs the sales contract, he retains one copy and the rest are delivered to the seller for his decision.

Accepted Answer

A) True 
 B)False

Question 10

Under a conditional land sales contract,

Accepted Answer

A)  legal title is held by the vendee. 
B)  equitable title is held by the vendee. 
C)  legal title is held by a trustee. 
D)  equitable title is held by a trustee. 
A)  legal title is held by the vendee. 
B)  equitable title is held by the vendee. 
C)  legal title is held by a trustee. 
D)  equitable title is held by a trustee.

Question 11

If the buyer is unable to obtain financing on the terms outlined in the sales agreement, the seller will have to return the buyer's deposit.

Accepted Answer

A) True 
 B)False

Question 12

From the following, select the parties to a land sales contract.

Accepted Answer

A)  Lessor-Lessee 
B)  Mortgagor-Mortgagee 
C)  Grantor-Grantee 
D)  Vendor-Vendee 
A)  Lessor-Lessee 
B)  Mortgagor-Mortgagee 
C)  Grantor-Grantee 
D)  Vendor-Vendee

Question 13

An option to purchase real property is NOT

Accepted Answer

A)  a contract. 
B)  covered by the statute of frauds. 
C)  covered by real property laws. 
D)  cancelable by the optionor. 
A)  a contract. 
B)  covered by the statute of frauds. 
C)  covered by real property laws. 
D)  cancelable by the optionor.

Question 14

In the event of default by the buyer the seller may sue for specific performance but not for money damages.

Accepted Answer

A) True 
 B)False

Question 15

The amount of earnest money necessary for a given transaction is NOT determined by

Accepted Answer

A)  the buyer. 
B)  the seller. 
C)  the buyer and seller. 
D)  the broker. 
A)  the buyer. 
B)  the seller. 
C)  the buyer and seller. 
D)  the broker.

Question 16

A real estate licensee may advise sellers or buyers regarding which of the following?

Accepted Answer

A)  Which deed form to use 
B)  How to take title 
C)  Tax implications on the sale or purchase 
D)  Choices of financing for the transaction 
A)  Which deed form to use 
B)  How to take title 
C)  Tax implications on the sale or purchase 
D)  Choices of financing for the transaction

Question 17

A real estate purchase agreement contract used by a multiple listing member may be all of the following EXCEPT

Accepted Answer

A)  receipt for earnest money. 
B)  contract up to the date of closing. 
C)  commission agreement between the seller and broker. 
D)  statement of the buyer's costs. 
A)  receipt for earnest money. 
B)  contract up to the date of closing. 
C)  commission agreement between the seller and broker. 
D)  statement of the buyer's costs.

Question 18

Choose the one most appropriate answer for each.
-the party receiving 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

Question 19

Howard signed an option with Paula giving Paula the "right to purchase" in 90 days. Paula decided she did not want the property and did not exercise her option. Howard can

Accepted Answer

A)  sue for specific performance. 
B)  sue for damages. 
C)  sue for specific performance and damages. 
D)  do nothing. 
A)  sue for specific performance. 
B)  sue for damages. 
C)  sue for specific performance and damages. 
D)  do nothing.

Question 20

Choose the one most appropriate answer for each.
-rotted wood;usually the result of alternate soaking and drying over a long period of time

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

Exam 7: Real Estate Sales Contracts

Choose the one most appropriate answer for each. -money that accompanies an offer to purchase as evidence of good faith

Choose the one most appropriate answer for each. -an agreement by a lender to make a loan

A land sales contract passes

If the vendee is in default, the vendor

Which of the following is true of a land sales contract?

If a contract of sale is subject to the buyer's ability to secure a loan, and after diligent effort the buyer is unable to do so by the stated deadline, the

Choose the one most appropriate answer for each. -a short-form purchase contract to hold a real estate transaction together until a more formal contract can be prepared an designed

A _________________________ allows the tenant to buy the property at a preset price for a given period of time.

After the buyer signs the sales contract, he retains one copy and the rest are delivered to the seller for his decision.

Under a conditional land sales contract,

If the buyer is unable to obtain financing on the terms outlined in the sales agreement, the seller will have to return the buyer's deposit.

From the following, select the parties to a land sales contract.

An option to purchase real property is NOT

In the event of default by the buyer the seller may sue for specific performance but not for money damages.

The amount of earnest money necessary for a given transaction is NOT determined by

A real estate licensee may advise sellers or buyers regarding which of the following?

A real estate purchase agreement contract used by a multiple listing member may be all of the following EXCEPT

Choose the one most appropriate answer for each. -the party receiving an option

Howard signed an option with Paula giving Paula the "right to purchase" in 90 days. Paula decided she did not want the property and did not exercise her option. Howard can

Choose the one most appropriate answer for each. -rotted wood;usually the result of alternate soaking and drying over a long period of time

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

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