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23 Cards in this Set

  • Front
  • Back
An option to purchase is what kind of contract:

a. Unilateral
b. Bilateral
c. Void
d. Unenforceable
a. Unilateral
X made an offer to buy B's property. B accepts the offer under the condition that X moves in four days after close of escrow. What is the status of the contract:

a. Valid
b. Unilateral
c. Counter offer
d. Binding upon X when B signed the offer
c. Counter offer
When a buyer signs a contract, what type of title would he most likely have:

a. Legal
b. Actual
c. Equitable
d. Specific
c. Equitable
A contract does not have a legal description. The contract would be:

a. Void
b. Valid
c. Voidable
d. Unenforceable
d. Unenforceable
A broker is a property manager for an owner and collects the monthly rents. The owner dies. What is the status of the property management agreement?

a. Terminated upon death of owner
b. Valid until expiration
c. Valid leases expire
d. Can only be terminated by the heirs
a. Terminated upon death of owner
A person wants to buy a property in the future, but also wants the right to reject the offer. This is called:

a. First Right of Refusal
b. Option
c. Lease Purchase
d. Exchange
a. First Right of Refusal
If there is a contract dispute, which of the following would take precedence?

a. Printed workd
b. Items crossed out
c. Handwritten words
d. Boilerplate
c. Handwritten words
A tenant enters into an option to buy the rental property at a future date. When does the option become binding on both the lessor and lessee:

a. When the option to buy is exercised by the optionee
b. When the option is signed, money is given, and option recorded
c. When the option is signed
d. When the option is recorded
a. When the option to buy is exercised by the optionee
A salesperson was presenting the buyer's offer to the seller, and at the same time the buyer calls the salesperson to cancel his offer. What is the status of the buyer's offer?

a. Buyer can't back out
b. Buyer would owe the salesperson a commission
c. Offer is void
d. The buyer is bound to the seller's deciesion
c. Offer is void
A buyer and seller enter into a sales contract in which the broker was the procuring cause. Before the close of escrow, the buyer and selelr agree to mutually cancel the contract. What is the status of the broker's commission?

a. Broker would receive no commission
b. Buyer must pay the broker's commission
c. Broker would be paid a commission
d. Broker must ask the real estate commission to arbitrate the matter
c. Broker would be paid a commission
Money pre-agreed in a contract that will be forfeited in case of a breach by the other is called:

a. Consequential damages
b. Exemplary damages
c. Punitive damages
d. Liquidated damages
d. Liquidated damages
What mus an option have to be valid?

a. Consideration
b. Deed preparation
c. Recordation
d. Notarization
a. Consideration
Which of the following automatically terminates a purchase contract?

a. Death of the seller
b. Death of the buyer
c. Condemnation
d. Death of the escrow officer
c. Condemnation
A buys B's property under an oral agreement with $150,000 down and $125,000 for the next two years. A improves the property and after a year, B wants to cancel the deal du to the fact it was oral. Which of the following is true:

a. B may cancel the transaction and keep A's money
b. The action of the parties ratifies the transaction
c. A will automatically lose the property
d. A never had the right to improve the property
b. The action of the parties ratifies the transaction
A buyer makes an offer and the seller accepts but makes a slight change, and initials the change. Before the buyer can initial the change, he dies. What is the status?

a. Contract is binding on the heirs
b. Contract is enforcable
c. Contract is unenforceable
d. Contract is voidable
d. Contract if voidable
Purchaser made offer contingent upon financing, and she would forfeit $3,000 if the contingency was not met. Which of the following can the seller sue for if the buyer refuses to forfeit the $3,000?

a. Punitive damages
b. Recision
c. Liquidated damages
d. Monetary damages
c. Liquidated damages
When a lessee is given the right to purchase a property with no specific price and at no specific time, this is called:

a. Option to buy
b. First right to refuse
c. Subordination
d. Agreement to sell
b. First right to refuse
An option agreement is referred to as an:

a. Bilateral executory
b. Bilateral executed
c. Unilateral executed
d. Unilateral executory
d. Unilateral executory
Who is primarily responsible for presenting an offer?

a. Listing broker
b. Selling broker
c. Salesperson
d. Buyer's broker
a. Listing broker
X delivers a contract to Y and gives Y five days to accept the offer. One day later X withdraws the offer. Which of the following is true?

a. X must give Y five days
b. X may withdraw the offer
c. Y may sue X for specific performance
d. Y must give written permission for X to back out
b. X may withdraw the offer
If a husband and wife buy real property and the wife fails to sign the purchase contract, the contract is:

a. Void
b. Valid against both
c. Illegal
d. Unenforceable against both
d. Unenforceable against both
When does a buyer have equitable title?

a. WHen the contract is executed "signed"
b. When given a general warranty deed
c. Legal possession
d. Physical possession
a. When the contract is executed "signed"
An amount stated in a purchase contract in case the buyer breaches is called:

a. Specific damages
b. Liquidated damages
c. Specific Performance
d. Punitive damages
b. Liquidated damages