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10 Cards in this Set
- Front
- Back
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If the seller is a minor, the purchase agreement should be signed by: |
If one of the parties to a contract is a minor (under 18 years of age), the contract should be signed by that party's legal guardian |
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The purchase price stated in the purchase agreement should include any: |
The purchase price stated in the agreement should be the full price being paid for the property, including the downpayment, any mortgages or liens the buyer is assuming, and any financing is provided by the seller or by a lender |
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The buyer usually gives the good faith deposit to either the escrow agent or the: |
In most cases, the buyer will give the good faith deposit either directly to the escrow agent or to the selling agent (and the deposit will be held in trust or delivered to an escrow agent by the selling broker |
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The included and excluded and excluded items paragraph is used to: |
The included and excluded items paragraph lists items that are included in or excluded from the sale unless otherwise noted. (Many of the items listed as included would be considered fixtures or attachments to the real property and included in the sale even without this provision.) |
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In setting a closing date, you should take into account all of the following except: |
In setting a closing date, it's important to consider how long it will take the parties to fulfill their obligations and satisfy any contingencies in the purchase agreement. The due date for the property taxes is irrelevant, since the taxes will be prorated |
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The parties are required to initial the liquidated damages clause in the purchase agreement: |
The liquidated damages clause must be initialed by the buyer and the seller to show that they were aware of the provision and specifically consented to it. (If the clause is initialed, liquidated damages are the seller's only remedy for breach of contract.) |
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Because a purchase agreement has a "time is of the essence" clause: |
The purpose of the "time is of the essence" clause is to make the dates and deadlines specified in the agreement material terms of the contract. As a result, one party's failure to meet a deadline may be treated as a breach of contract by the other party |
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To be enforceable, an arbitration clause in a purchase agreement must be: |
An arbitration clause is a purchase agreement is enforceable only if it has been initialed by both the buyer and the seller |
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Which document should be prepared if the buyer plans to take possession before the closing date? |
If the parties plan to transfer possession of the property either before or after the closing date, they should sign a rental agreement |
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If a buyer defaults on a purchase agreement, the good faith deposit is typically: |
When a buyer defaults on a purchase agreement, her good faith deposit is forfeited to the seller. In many cases, the seller will split the deposit with the listing broker, who will split his share with the selling broker |
