Contracts - Real Estate Advantage

Question 1 of 40

Foreclosure occurs when a ____ seizes and sells a borrower’s ____ after the borrower has failed to ____ the lender.

bank, personal property, appreciate
lender, collateral, repay
bank, property, notify
lender, home, alert

Question 2 of 40

A buyer agrees to purchase a home once the sale on her current home is completed. Legally, this is known as ____?

option agreement
specific performance
negotation
contingency

Question 3 of 40

Mr. and Mrs. Cox make Mr. and Mrs. Green an offer on their home, but they have not heard back from them on whether or not the offer has been accepted. In the meantime, they have found another home they would like to purchase instead. What is their best option?

Wait for Mr. and Mrs. Green’s response. If they accept the offer, pay the withdraw fee outlined in the contract.
Modify their offer to one they are confident Mr. and Mrs. Green will not accept.
Withdraw their offer with penalty.
Withdraw their offer with no penalty.

Question 4 of 40

Which part of a traditional deed contains warranties?

habendum
acknowledgement
testimonium
premises

Question 5 of 40

What part of a deed limits the amount of the estate granted?

testimonium
habendum
acknowledgement
premises

Question 6 of 40

Which type of deed contains no warranties at all?

sheriff’s deed
trustee’s deed
referee’s deed
quitclaim deed

Question 7 of 40

Real estate agents will earn their money once a piece of property is ____.

sold or exchanged
financially secure
valued
loaned or abetted

Question 8 of 40

____ indicates ownership of property, in real estate terms.

Actuance
Certified
Variance
Title

Question 9 of 40

Joan sells her house to her brother Mike on a handshake. This contract is:

illegal
valid only in certain states
valid because they are related
unenforceable

Question 10 of 40

When ownership of a piece of real estate goes from one person to another, it is called a(n) ____.

deal
transfer
convetary exchange
exchange

Question 11 of 40

A buyer and seller agree to wait until the seller’s listing is expired to make the sale in order to avoid paying the broker his share. How can the broker get his commission?

If the listing is expired, the commission is forfeited.
Sue the party/parties the broker was representing.
Prove in court he was the procuring cause of sale.
File an injunction with the title company.

Question 12 of 40

A contract can become voidable if one of the parties was being victimized because ____.

they were misled
they were a minor
all of these
they did not agree voluntarily

Question 13 of 40

Which of the following is not a requirement for a deed to be valid?

description of property
name of grantee
signature of grantor
recording in a county courthouse

Question 14 of 40

An express contract can be ____.

closed faster than a standard contract
enforced only if it is in writing
enforced only if it is made orally
oral or in writing

Question 15 of 40

A good example of an implied contract is ____.

an agent is told by a potential seller that he’d like the agent to do a market analysis
after a written lease expires, rent is paid and the check cashed
a tenant communicating that they expect the full deposit back because the landlord did not ever note damage to the property
a tenant staying despite not paying rent

Question 16 of 40

Which of the following is not true regarding a contract of sale?

It must be signed by all parties.
It must be notarized.
Preprinted contracts are acceptable.
It is acceptable to refer to a document that is in the public record if the property description is very complex.

Question 17 of 40

Deed restrictions and easements on a property are considered ____ when written into the deed.

a consideration
exceptions and reservations
a bad investment
a turnaround investment

Question 18 of 40

In a real estate transaction, the ____ is the current owner of the property and is conveying his or her property to someone else.

grantor
landlord
agent
guarantor

Question 19 of 40

Substituting a new obligation for an existing one with the intent to cancel the latter is called ____.

execution
novation
latches
assignment

Question 20 of 40

Why are net listings generally frowned upon in the real estate industry?

They drive down the prices of homes for sale.
They can lead to brokers taking advantage of property owners.
The broker typically takes a smaller than average commission.
All of these.

Question 21 of 40

The listing period for a single family home vs. a commercial property differs in that:

A commercial property listing does not have an expiration date whereas a single family home listing always does.
Single family homes may be listed for as long as the seller would like, whereas commercial property listing periods are regulated by law.
A single family home is typically listed for 60-120 days whereas a commercial property is typically listed 6 months-1 year.
By law, single family homes may only be listed for up to 1 year, while commercial properties may be listed up to 18 months.

Question 22 of 40

Where is a deed recorded?

county courthouse
lawyer’s office
Department of Licensing and Regulatory Affairs (LARA)
Secretary of State

Question 23 of 40

Who is responsible for establishing the listing price of a property?

the real estate broker
the property owner
the appraiser
the mortgage company

Question 24 of 40

What are the four elements required of every valid and enforceable contract?

competent parties; legal address; broker signatures; and cash
competent parties; legal purpose; negotiated price; and signatures
competent parties; legal address; dollar amount; and clear title
competent parties; legal purpose; offer and acceptance; and consideration

Question 25 of 40

The ____, also known as the words of conveyance, includes the words that describe exactly what rights the grantee is receiving.

granting clause
transfer clause
guarantor’s rights
grantee’s rights

Question 26 of 40

For a listing agreement to be valid, it must be ____.

in writing and contain a cap on broker commission
in writing, with an expiration date of no more than 90 days
recorded, if an oral agreement
in writing, have an expiration date, and be signed

Question 27 of 40

A bilateral contract is one where ____.

only one party makes a promise
both parties are covered by the same brokerage house
both parties are covered by the same agent
both parties make a promise

Question 28 of 40

The seller disclosure statement contains ____.

any other investment holdings the seller may possess
any conditions of sale
any additions made to the property
any known material defects to the property

Question 29 of 40

The ____ requires that all real estate transfers of title be in writing.

transfer clause
law of rights
statute of frauds
statute of adjudication

Question 30 of 40

A contract can be unenforceable if ____.

a person failed to take enforcement action within the statute of limitations
it was written and all copies are missing or destroyed
all of these
it was oral or implied and there is no proof or witness to agreement

Question 31 of 40

A ___ serves as your permanent record of property ownership.

list paper
certificate
white paper
deed

Question 32 of 40

In reference to deeds, what is the closest definition of “delivery in escrow”?

A deed is considered invalid until it is signed by the grantor.
The grantor delivers the deed to a trustee, who holds onto the deed until the grantee has completed any required actions.
The grantee obtains physical possession of the completed deed from the grantor.
A deed is completed but not delivered, such as when a death occurs and the deed is found in the grantor’s home.

Question 33 of 40

The grantor must ____ the deed for it to be valid.

sign
grant
notarize
endorse

Question 34 of 40

The ____, which contains the words “to have and to hold,” further defines any rights being granted to the grantee.

partnership clause
habendum clause
joint clause
marriage clause

Question 35 of 40

The ____ shows that the grantor is receiving something in exchange for the property.

reception clause
transfer clause
proper exchange clause
consideration clause

Question 36 of 40

An example of substantial performance is when ____.

a contractor does a job that is far better than their normal performance
a contractor substitutes similar materials during a job
a contractor does a job that is far worse than their normal performance
a contractor independently alters the terms of the contract

Question 37 of 40

A(n) ____ is a way of proving that the grantor signs the deed voluntarily.

proof of signature
guarantee
proof of purchase
acknowledgment

Question 38 of 40

The ____ of a piece of property is designed to leave no doubt about the exact boundaries of the property being conveyed.

property border map
legal outline
legal description
property outline

Question 39 of 40

In a real estate transaction, the ____ is the recipient of a piece of property and is receiving property from someone else.

bequeathed
grantee
endorsed
endowed

Question 40 of 40

The term ____ refers to the legal act of giving and receiving a deed.

transfer of sale
passing title
transfer of goods
transfer title

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