WI Real Estate Exam Chapter 10 Material || with 100% Error-free Solutions.
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Course
WI Real Estate
Institution
WI Real Estate
A promise made, usually by a buyer, to purchase a seller's property under certain terms. correct answers offer to purchase
Up front cash or item of value from the potential buyer which indicates their intention to make good on their offer to purchase. correct answers earnest money
The right o...
WI Real Estate Exam Chapter 10 Material || with 100%
Error-free Solutions.
A promise made, usually by a buyer, to purchase a seller's property under certain terms. correct
answers offer to purchase
Up front cash or item of value from the potential buyer which indicates their intention to make
good on their offer to purchase. correct answers earnest money
The right of a person to have the first opportunity either to purchase or lease real property.
correct answers right of first refusal
A component of binding acceptance. Delivery can occur by fax, by mail, or personally. correct
answers delivery
Occurs when all buyers and sellers have signed an identical copy of the offer, including
signatures on separate but identical copies of the offer. correct answers acceptance
Creates an enforceable contract between the parties if a copy of the accepted offer is delivered to
the party making the offer prior to a predetermined date specified in the offer. correct answers
binding acceptance
A fee paid to a broker before any services are rendered. correct answers advance fee
A buyer delivered an offer to the wrong person and the deadline for acceptance expired before
the buyer delivered it to the seller. The buyer does not want to go ahead with the offer now. Can
the seller unilaterally extend the date for acceptance to bind the buyer to the contract? correct
answers No. A WB-11 is only binding on the parties to the offer and, because the buyer failed to
deliver the offer to the seller before the buyer's own deadline for acceptance, the offer is no
longer a valid offer. The parties could offer counter-offers to try to revive the negotiation
process.
A licensee wants to make a personal offer on a property listed with the licensee's firm. Can the
licensee make an offer on the property? correct answers A licensee can make an offer on a
property listed with the licensee's firm if the licensee does not know any of the terms of the
pending offer. Before making the offer, the licensee should check with the supervising broker to
see if the licensee's firm has an office policy on licensees making offers on properties listed with
the licensee's firm.
A seller accepts a primary offer contingent on the sale of the buyer's property. The seller then
accepts an attractive secondary offer and issues a bump notice to the primary buyer. If another
buyer submits a secondary offer that the seller would like to accept, can the seller move the
second secondary offer into primary position if the primary buyer does not waive the sale of the
buyer's property contingency? correct answers Yes. A seller can accept any secondary offer that
a buyer submits to the seller. A seller does not have to prioritize secondary offers according to
, the order in which buyers submitted the offers. Before elevating either secondary offer, a seller
should determine if either offer contains a priority clause. A buyer can submit a secondary offer
with a priority clause that would require a seller to elevate that offer above other accepted
secondary offers. The WB-11 Residential Offer to Purchase does not contain a priority clause
and if a buyer wants to submit an offer with a priority clause, a buyer must include it as an
additional provision.
A seller sends a bump notice to a buyer on Friday. When is the bump notice effective? correct
answers Unlike other deadlines in the offer that run from delivery, the bump notice becomes
effective when the buyer actually receives it. The deadline for the bump notice is different
because the deadline for a buyer's response is often hours rather than days. If the notice took
effect on delivery, it would be possible for a buyer to receive the notice after the deadline for the
buyer's waiver.
What is the difference between a loan commitment subject to a lender's appraisal and an offer
with an appraisal contingency? correct answers When a buyer includes a financing contingency
in an offer, the buyer is agreeing to apply for the loan described in the financing contingency. A
lender can issue a loan commitment to a buyer that is subject to the lender conducting an
appraisal of the property. If a buyer receives a loan commitment for the loan described in the
offer or another loan that is acceptable to the buyer, the buyer must provide that loan
commitment to the seller and this satisfies the financing contingency even if the loan
commitment is subject to lender conditions. If the lender appraises the property and chooses not
to issue the loan to the buyer, the buyer cannot cancel the offer based on the financing
contingency. If a buyer submits an offer that includes an appraisal contingency, the buyer can
cancel the offer if an appraisal comes in at less than the agreed upon purchase price.
A licensee wants to write an offer as a principal for a property listed with another firm. Can the
licensee receive a commission if the seller accepts the licensee's offer? If not, can the licensee
ask the seller to pay an incentive equal to the commission the licensee would have received on
the sale? correct answers When acting as a buyer of real estate, a licensee is a principal in the
transaction and not acting as an agent. A licensee cannot collect a commission from a seller
because a licensee cannot perform services on behalf of the seller with undivided loyalty. A
licensee can negotiate an incentive to be paid by the listing firm or the seller. This incentive can
be for the amount of the cooperating firm commission that would otherwise be paid to the selling
firm in the transaction.
Listing firm correct answers According to the WB-11 Residential Offer to Purchase, a buyer
should pay earnest money to the:
A buyer can give written notice that the title is not acceptable for closing if the seller cannot
provide a gap endorsement. correct answers The Gap Endorsement section of the WI-11
Residential Offer to Purchase states that:
Allows for an inspection of the unit and limited common elements. correct answers The
Inspection Contingency in the WB-14 Residential Condominium Offer to Purchase:
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