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10 Cards in this Set
- Front
- Back
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Which of the following statements about an offer to purchase real property is true? |
The statue of frauds requires both an offer to purchase real property and the acceptance of the offer to be in writing |
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Which of the following statements about preparing an offer to purchase is true? |
If a real estate agent makes a mistake in filling out a contract form, the agent (or the agent's broker) may be held liable for losses resulting from the agent's negligence |
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A contingent counteroffer would be appropriate when: |
A contingent counteroffer allows a seller to accept a second offer, contingent on the failure of the first contract |
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The seller's acceptance would be effective (so that the buyer could no longer withdraw his offer) in all of the following situations, except: |
In order to form a contract to purchase real estate, the acceptance must be made in writing. Telephone communication is not a valid form of acceptance. the mailbox rule would apply to all of the other situations listed |
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Once it has been signed by both the buyer and the seller, a purchase agreement can be modified only if: |
Once a contract has been formed, the terms of the contract can't be changed without consent of both parties. The parties may agree to amend the contract for any reason |
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Which of the following is least likely to be found in a cancellation agreement? |
A contract cancellation agreement should be signed by both parties and describe how the good faith deposit will be handled. It may include a safety clause for the brokers' protection. If the seller has accepted a backup offer, the notice to the backup buyer will be handled separately |
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After accepting a good faith deposit from a buyer, you are required to tell the seller: |
A real estate agent who accepts a good faith deposit is required to disclose the amount and form for the deposit to the seller. The agent should follow office policies regarding the form and handling of the deposit, and also inform the seller of anything unusual about the deposit, such as the fact that the buyer's check is postdated |
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If you accept cash as a good faith deposit, you: |
If you accept a good faith deposit in cash, you must turn the case over to your broker so that i can be placed in the trust account in cash. Although accepting a good faith deposit in cash increases the chance of loss or improper handling, it is not in itself grounds for disciplinary action |
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Many purchase agreement forms have a provision allowing the broker to hold a check for good faith deposit for a specified period without depositing it in a trust account. One advantage of this is that: |
Purchase agreements often allow the broker to hold the good faith deposit check without depositing it until the seller accepts the offer. This makes it easier to return the good faith deposit to the buyer if the offer is rejected |
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A buyer signs a purchase agreement for a duplex that she intends to occupy. If she forfeits the good faith deposit as liquidated damages for breach of the purchase agreement: |
If the buyer breaches the purchase agreement, no more than 3% of the purchase price can be retained as liquidated damages. After expenses incurred by the brokers have been deducted, the seller usually keeps half of the remainder and gives the listing broker the other half. The listing broker will usually split this portion with the selling broker |
