Question 1

A purchase agreement for the purchase of real property is

Accepted Answer

A)  not necessary in a cash sale when the amount of earnest money paid equals the purchase price. 
B)  a legally enforceable contract which is binding on the seller as soon as it is signed by the buyer if the price and terms of the listing agreement are met exactly. 
C)  legally enforceable and binding on the buyer as soon as it is signed by him. 
D)  enforceable when the seller signs it and the buyer is notified of the seller's acceptance. 
A)  not necessary in a cash sale when the amount of earnest money paid equals the purchase price. 
B)  a legally enforceable contract which is binding on the seller as soon as it is signed by the buyer if the price and terms of the listing agreement are met exactly. 
C)  legally enforceable and binding on the buyer as soon as it is signed by him. 
D)  enforceable when the seller signs it and the buyer is notified of the seller's acceptance.

Question 2

In most residential purchase agreements, the purchaser has the right to withdraw from the purchase without forfeiture of the earnest money if he cannot obtain necessary financing.

Accepted Answer

A) True 
 B)False

Question 3

Choose the one most appropriate answer for each.
-the right to demand that the title be conveyed upon payment of the purchase price

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 4

Choose the one most appropriate answer for each.
-the right to match or better an offer before the property is sold to someone else

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 5

Any item of personal property to be sold with the real estate must be handled with a bill of sale.

Accepted Answer

A) True 
 B)False

Question 6

Walter has reserved the right, for a specific period of time, to buy Helen's house. Walter gave Helen a $500 deposit for this right. This transaction most likely involves an option.

Accepted Answer

A) True 
 B)False

Question 7

The phrase "time is of the essence" means

Accepted Answer

A)  that the broker must present the offer quickly. 
B)  that the transaction must close as soon as possible. 
C)  that punctual performance of the time limits set by the contract is essential. 
D)  little, since the phrase has no specific meaning. 
A)  that the broker must present the offer quickly. 
B)  that the transaction must close as soon as possible. 
C)  that punctual performance of the time limits set by the contract is essential. 
D)  little, since the phrase has no specific meaning.

Question 8

Choose the one most appropriate answer for each.
-property offered for sale in its present condition with no guarantee or warrant of quality provided by the seller

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 9

The right to demand that title be conveyed upon payment of the purchase price is known as ____________________ title.

Accepted Answer

The answer of The right to demand that title be...

Question 10

Choose the one most appropriate answer for each.
-a phrase meaning that all parties to a contract are expected to perform on time as a condition of the contract

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 11

An earnest money agreement signed by all parties is

Accepted Answer

A)  binding on the seller. 
B)  a binding contract on the seller only if it is full price and the terms of the listing agreement are met. 
C)  revocable by the buyer for 72 hours. 
D)  only binding on the buyer. 
A)  binding on the seller. 
B)  a binding contract on the seller only if it is full price and the terms of the listing agreement are met. 
C)  revocable by the buyer for 72 hours. 
D)  only binding on the buyer.

Question 12

A valid enforceable sales agreement must

Accepted Answer

A)  contain the grantor and grantee's signatures. 
B)  be accompanied by an earnest money deposit. 
C)  be written and delivered. 
D)  be written and mailed. 
A)  contain the grantor and grantee's signatures. 
B)  be accompanied by an earnest money deposit. 
C)  be written and delivered. 
D)  be written and mailed.

Question 13

When property is purchased using a land sales contract, the instrument used to convey legal title would be

Accepted Answer

A)  an executory deed. 
B)  a bargain and sale deed. 
C)  a warranty deed. 
D)  non-existent since legal title is not transferred until the contract is paid off. 
A)  an executory deed. 
B)  a bargain and sale deed. 
C)  a warranty deed. 
D)  non-existent since legal title is not transferred until the contract is paid off.

Question 14

The seller decided that he didn't want to sell his house a few days before closing. He can

Accepted Answer

A)  simply not show up to sign the deed. 
B)  return the earnest money deposit and declare the contract void. 
C)  be sued by the buyer for specific performance and damages. 
D)  can refuse to pay the broker a commission. 
A)  simply not show up to sign the deed. 
B)  return the earnest money deposit and declare the contract void. 
C)  be sued by the buyer for specific performance and damages. 
D)  can refuse to pay the broker a commission.

Question 15

A rider is any addition annexed to a document and made part of the document by reference.

Accepted Answer

A) True 
 B)False

Question 16

The most important feature of a(n)____________________ contract is that the seller does not deliver a deed to the buyer at closing.

Accepted Answer

The answer of The most important feature of a(n)____________________ contract...

Question 17

If a person has the right to rent a house and the guaranteed opportunity to buy it at a fixed price at a later date, he would have what is known as a lease with option to buy.

Accepted Answer

A) True 
 B)False

Question 18

Earnest money is required to make a sales contract enforceable.

Accepted Answer

A) True 
 B)False

Question 19

"Time is of the essence" means that the time limits set by the contract must be faithfully observed or the contract is voidable by the defaulting party.

Accepted Answer

A) True 
 B)False

Question 20

The phrase "as is" when used in real estate contracts means the buyer is accepting the property without

Accepted Answer

A)  a survey. 
B)  a title report. 
C)  new financing. 
D)  warranty as to physical condition. 
A)  a survey. 
B)  a title report. 
C)  new financing. 
D)  warranty as to physical condition.

Exam 7: Real Estate Sales Contracts

A purchase agreement for the purchase of real property is

In most residential purchase agreements, the purchaser has the right to withdraw from the purchase without forfeiture of the earnest money if he cannot obtain necessary financing.

Choose the one most appropriate answer for each. -the right to demand that the title be conveyed upon payment of the purchase price

Choose the one most appropriate answer for each. -the right to match or better an offer before the property is sold to someone else

Any item of personal property to be sold with the real estate must be handled with a bill of sale.

Walter has reserved the right, for a specific period of time, to buy Helen's house. Walter gave Helen a $500 deposit for this right. This transaction most likely involves an option.

The phrase "time is of the essence" means

Choose the one most appropriate answer for each. -property offered for sale in its present condition with no guarantee or warrant of quality provided by the seller

The right to demand that title be conveyed upon payment of the purchase price is known as ____________________ title.

Choose the one most appropriate answer for each. -a phrase meaning that all parties to a contract are expected to perform on time as a condition of the contract

An earnest money agreement signed by all parties is

A valid enforceable sales agreement must

When property is purchased using a land sales contract, the instrument used to convey legal title would be

The seller decided that he didn't want to sell his house a few days before closing. He can

A rider is any addition annexed to a document and made part of the document by reference.

The most important feature of a(n)____________________ contract is that the seller does not deliver a deed to the buyer at closing.

If a person has the right to rent a house and the guaranteed opportunity to buy it at a fixed price at a later date, he would have what is known as a lease with option to buy.

Earnest money is required to make a sales contract enforceable.

"Time is of the essence" means that the time limits set by the contract must be faithfully observed or the contract is voidable by the defaulting party.

The phrase "as is" when used in real estate contracts means the buyer is accepting the property without

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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