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65 Cards in this Set

  • Front
  • Back
As per the Statute of Frauds, which one of the following must be in writing?
An agreement by a purchaser to pay an indebtedness previously secured by a deed of trust upon the property to be purchased
Broker Gonzales has listed seller Franklin's property. A few days later, he receives an offer and presents it to Franklin who hesitates to accept. Based on the fact, he has not yet found another property that wishes to purchase and is concerned of not having a waiting residence when his house closes. Broker Gonzales reassures Franklin with a verbal promise to find him a suitable residence before escrow closes, and so Franklin accepts the offer. If Gonzales fails to keep his promise within the designated time period, Franklin could ?
Initiate a civil suit against Gonzales for full damages.
When parties enter into a bilateral contract, a promise is offered as receipt of a return promise, in turn, when the return promise is offered, it becomes
a consideration.
When the buyer makes an offer, an earnest money deposit may be given by way of?
1. disclosed and authorized post-dated check. 2. anything the seller will accept as valuable. ca 3. promissory note.
The action whereby a contract is replaced by an entirely new contract is known as?
novation
Wells made an offer to purchase Thomas's farm, but before the listing broker could communicate Thomas's written acceptance of the offer, Wells died from an existing ailment. Under the aforementioned circumstances, which of the following is true?
Well's death prior to the communication of acceptance constitutes a revocation of the offer
A broker is imposing 10% interest rate higher to borrowers wherein English is not their first language. Said broker's action is
a violation of the Housing Financial Discrimination Act of 1977.
The action of a promissory note is
a promise to pay a debt owed to another.
the contract date of a deposit receipt?
When acceptance of the offer and deposit has been communicated back to the buyer either verbally or in writing
When party A forms an agreement with party B granting B the right to offer, sell, distribute and/or service A?s products, utilizing a marketing plan specifically described by A, such an agreement is known as a
franchise agreement.
Jones agreed to list his property with Broker Franklin. When they filled out the listing agreement, Jones indicated that he wished the following deleted from the contract, "Agency" is hereby authorized to accept on my behalf a deposit toward the purchase price in any amount. What would most likely to occur if Broker Franklin and seller Jones agree to the deletion and Franklin produces a buyer?
If and when Franklin accepts a deposit from a buyer, he will hold it as agent of the buyer until the offer is accepted by Jones.
A contract drawn between a seller and a licensed broker or agent in agreement to pay the licensee a commission if he uses due diligence to procure a ready, willing, and able buyer is known as a
unilateral listing contract.
A power of attorney may be effectively terminated through
1. the attorney-in-fact’s refusal to fulfill the terms of the agreement.

2. the inability of the attorney-in-fact to complete the agency.


3. the death of the principal.

When is a contract considered non-assignable?
When it is drawn for personal service
When a person is forced to sign a contract under duress, that contract is considered
voidable.

On August 3, 2004, Thomas gave a written offer to purchase Brown?s property with the stipulation that Brown has three days to accept or reject the offer. Brown got ill and was not well enough to accept the offer until August 17, 2004. Under the circumstances, which of the following is correct?

Thomas may demand the return of his deposit monies
When a business is purchased, the buyer should make sure that a certificate of clearance has been issued by the
Board of Equalization.
Both seller Rosswell and buyer Snyder have initialed the liquidated damages clause within a written offer to purchase Rosswell's property. Subsequently, Snyder defaults on the transaction. What action would be taken on the deposit monies?
Incurred broker expenses and seller damages are deducted and the remainder, over 3% of the selling price, is returned to Snyde
In the event of legal action, in order for a purchase of real property contract to be enforceable, the consideration must be sufficient to the actual value when implementing a suit for
specific performance
A correctly drawn closing statement would indicate a mortgage assumed by the buyer as a
debit to the seller.
An exclusive authorization agreement to locate a property usually includes a clause permitting the broker to
represent other buyers during the time limits of the agreement.
When an offer to purchase real property is made, it cannot be terminated by which of the following?
The seller gives notice of revocation after the buyer has accepted the offer
Upon filling out a written purchase agreement, Agent Jones identified the buyers, designating how title will be vested, without proper instruction. His action could be considered the giving of
1. tax advice.

2. potential evidence of discrimination.


3. legal advice.

Another meaning for the word 'rescind' is
repeal.
When a "hold harmless clause" appears in a listing agreement, it protects the agent against liability pertaining to
false disclosure or misinformation given by the seller.
Of the following, which would not be considered a necessary element of a simple contract?

Be in writing

In the event there is a default in a contract and provided money damages proves insufficient, a suit for specific performance can be brought to bear by all of the following, except
the licensed broker acting as agent for his principal.
When a broker is given a verbal acceptance on an offer by the seller, it constitutes a contract which is?
Unenforceable
A prospective buyer may withdraw his offer at any time before acceptance of the offer has been communicated back to him from the seller
for any reason.
In the event an agent takes a listing, including instructions which do not authorize the listing broker to accept a deposit when an offer is made on the property, the broker of record needs to alert his agents that
he can accept and retain a deposit only if he acts as agent for the buyer.
Since Broker Jones is acting exclusively for buyer Wells, he
can present offers to the seller and the seller’s agent.
For a contract to be considered executed:
There must be complete performance of obligations provided within the contract by all parties to the contract
The term "time is of the essence" would be included in which of the following?
A deposit receipt
The recording of an instrument gives which of the following types?
Actual notice
Seller Thomas has agreed in writing to provide and pay for a structural pest control inspection report and pay for any corrective work on the home, if necessary. It is the broker's responsibility to deliver a copy of the structural pest control report to the buyer
as soon as possible before the close of escrow.
Of the following, what effective action takes place when both buyer and seller sign a real property conditional sales contract?
Equitable title is conveyed to the buyer
In order for a real estate sales contract to be recorded, it must first
be signed by both the buyer and the seller and be acknowledged.
Thomas made an offer on Snyder's property but refused to give the $2,000 deposit specified in the listing agreement until the offer was accepted by Snyder because he planned to give the deposit in cash. Which of the following statements is correct?
Buyer agrees to deposit $2,000 cash with the broker immediately upon seller�s acceptance, would be included in the written offer.
Snyder wanted to obtain a four-month option so that he could purchase North Wind Acres from Smith for $310,000. He offered Smith $10 for it. If Smith accepts and the option is drawn and duly signed by both parties, it would be
valid as long as the $10 is delivered to Smith.
A voidable contract is binding upon the parties to the contract until it is legally

Cancelled in writing by the parties /Rescinded

The standard minimum time for an exclusive right to sell listing is
any feasible time agreed upon between the broker and the seller.
When Broker Smith takes an exclusive listing, he includes the following statement in the listing agreement, "the undersigned broker agrees to use diligence in procuring a purchaser in a timely fashion". The use of this statement
must be included for the creation of a bilateral contract.
A listing agreement would be considered

1. an employment contract


2. a promise given for a promise returned


3. a bilateral agreement

When a contract to purchase an investment property includes a condition requiring that the buyer be able to obtain satisfactory leases, said contract is considered to be
an enforceable contract.
Snyder sold Thomas an option for the purchase of Snyder's acreage. By law, said option would constitute which of the following?
A contract allowing Thomas an exclusive right to buy during a specified term
Agent Lopez listed Brown's property, with the promise he would advertise Brown's property in the newspaper three days a week until the property was sold. When Lopez failed to advertise the property as he promised, he became guilty of
actual fraud.
Broker Jones obtained a listing on a residential tri-plex investment property. The listing agreement included an option to purchase within 45 days. On the 21st day of the listing, Jones made an offer to purchase the property. In conjunction with his decision to buy the property, he must?
1. give his principal any material information. 2. disclose any outstanding offer. 3.obtain from his principal written consent freely allowing any profit or anticipated profit on his part in regards to the purchase.
Rosswell listed his ranch with Broker Lopez. The listing included this instruction: "seller to receive no more than 40% cash down payment". Shortly thereafter, Lopez presented Rosswell with a 100% all cash offer. Rosswell refused the offer. Broker Lopez is entitled to ?
no commission.
When a notary public is called upon to take an acknowledgement on an instrument, he?
cannot have any personal interest in the instrument being acknowledged.
The formation of a contract need not include which of the following?
Performance
A broker must disclose to the seller the selling price and the amount of commission he will receive when presenting which of the following types of listing?
Net listing
In the event real property is sold "as is", it ?
still requires a transfer disclosure statement.
Of the following, which is passed by a contract of sale?
Only the equitable title
Which of the following statements concerning options is valid?
The option binds the optionor to performance

A valid contract need not include which of the following?

Payment of money
When a property is bought with a land sales contract, the buyer should do which of the following in order to protect his interests?
Record the land sales contract
Broker Gonzales entered into an oral exclusive listing agreement with his friend, Snyder. No written listing agreement followed the original agreement. Gonzales ultimately sold Snyder's property. Under these circumstances, the payment of Gonzales's commission would be ?
allowed if Snyder chooses to pay a commission.
________ is a type of contract implied by law, as a matter of fairness, when no real contractual agreement took place?
Implied contract
The minimum amount of consideration required for a lease option contract in the state of California is now ?
an agreed-upon value which is monetary or non- monetary.
When there are two or more co-borrowers on a single loan, the lender may further increase the security on the note by including which of the following instructions after the name of each co-borrower's name?
Jointly and severally
A formal declaration, that is not under oath, to declare the truth or attest to the truth of a statement is ?
an affirmation.

Rosswell gave Broker Jones a listing to sell his home. The terms of the listing promised Jones a 6% commission upon sale of the property to a qualified buyer, providing Jones use timely diligence to procure a purchase. This arrangement constitutes a/an?

bilateral executory contract.
If a seller wanted to retain the legal title to real property and transfers only the equitable title to the buyer, the seller would use which financial instrument?
A conditional installment sales contract
A broker would be released from obligation to present an offer to buy his principal's property when ?
the offer is ridiculous, or the broker is following the written instruction of the principal.
A standard listing agreement authorizes a broker to?
procure a buyer and accept an offer to purchase and a deposit.