CompuCram Quiz 3 || All Answers Are Correct 100%.
Okay, because the buyer and seller have agreed to it correct answers A purchase and sales agreement stipulates that the earnest money deposit is placed in a separate interest-bearing Trust account, with any interest earned to be split between the buyer and seller. This is:
Tell the cooperating broker that the check bounced correct answers If a client's earnest money check, upon being deposited in the broker's trust account, is returned for insufficient funds, the broker should:
Turn it over to her broker immediately correct answers Salesperson Sue has just completed a purchase and sale agreement with Bob, her client, in order to make an offer on a house. The agreement includes a good faith deposit of $5,000 in the form of a check, which Bob has given to
Sue. Absent any specific instructions, what should Sue do with Bob's check?
Yes, if the seller is fully informed and approves in writing correct answers Can a buyer tender a personal note rather than cash or check as a good faith deposit?
No - only brokers may have trust accounts correct answers When a buyer gave salesperson Sue a
check for $1,000 as an earnest money deposit in a transaction, she deposited it in her special trust
account. Can her client earn interest on this deposit?
Conversion correct answers A broker who deposits clients' money in the same bank account as the brokerage's operating funds is guilty of:
All of the answers correct answers A seller and buyer agree on terms of a purchase and sale agreement, and are now waiting for closing to occur. Unfortunately, before closing occurs, the improvements on the property are struck by lightning and are totally destroyed. The buyer may:
Initiate forfeiture proceedings correct answers If the buyer in contract for deed (land contract) who has paid less than 20% equity defaults, the seller may:
Whatever the parties decide in the contract correct answers An option agreement allows a prospective buyer a period of time to examine property before deciding to complete the contract. Payments are often made for the privilege of making the examination. What usually happens to those payments if the buyer does not buy?
No corporate resolution granting "signing authority" to the real estate manager was approved correct answers If the landlord and the area real estate manager of a national retailer both execute
a lease, and the corporation fails to occupy the premises, what might prevent the landlord from enforcing the terms of contract?
An amount the parties agree on to settle a potential dispute correct answers What are liquidated damages? All of these answers correct answers A contingency is something that must be done or must occur in order to complete the terms of a contract. In the purchase and sale of a home, which of the following are contingencies?
Party benefiting from the condition/contingency correct answers A condition or contingency in a contract can be waived by the:
No - the acceptance has not been delivered back to the buyer correct answers Tim makes an offer
to buy Becky's house. Becky accepts the terms of the offer and evidences her acceptance by signing the offer. Is there a valid real estate purchase contract?
No - the sellers have not relinquished control of the acceptance correct answers A listing agent shows a buyer a home. The buyer then fills out an offer to buy the home, which the listing agent takes and explains to the sellers. The sellers like the offer and sign their acceptance to it. They then hand the accepted offer to their agent with instructions to deliver the accepted contract back to the buyer. Has a contract been created?
Debt correct answers The amount of money owed on a note or promise to pay is termed:
The amount of money owed on a note or promise to pay correct answers The term "debt" refers to:
Debt service correct answers The amount of money paid in regular intervals to reduce the balance owed on a debt is termed:
Yes, because of the mail box rule correct answers A buyer mails an offer to an out-of-town seller. The seller accepts the offer by signing it, puts the accepted offer in an envelope addressed to the buyer and places it in a U.S. mail box. Is there a contract between the buyer and seller?
Binds both parties to an agreement correct answers A bilateral contract is one that:
All of the answers
Match any other offer the seller/lessor is willing to accept.
Refuse to purchase or lease property if offered.
Have the first chance to buy or lease property. correct answers When a buyer has a right of preemption, he or she has a right to:
either Widow Smith is incompetent or Widow Smith's death before Bob can relate Jones' acceptance correct answers Old man Jones wants to settle his affairs prior to his death by selling his land and giving the money to his children. Broker Bob lists the property and markets it. After six months, an offer from Crazy Old Widow Smith, who lives in the next county, is received in the mail. Jones immediately signs the contract without change, and Broker Bob drives to the next county to deliver a copy to the widow in person. What might prevent this from being a binding contract?
The offer and acceptance correct answers A meeting of the minds refers to:
A solicitation of offers to buy correct answers A listing is:
Valuable correct answers Broker A conveys an offer from his client to Broker B, wherein A's client wishes to purchase a 300-acre farm by giving B's client $100,000, 2 year-old tractors and 50 head of Black Angus cattle. What would the consideration offered by A's client be called?
Voidable correct answers A subdivision developer employs agent Sue to sell lots. John, a licensed agent, offers to buy lot B-3 for $20,000; a sales contract is executed. However, through a typographical error which no one noticed, the contract identified the lot as D-3 (which was listed at $25,000.) What is the contract status?
It was terminated when Mr. Walker first rejected it correct answers Buddy wanted to offer to purchase the Walkers' home. He engaged Joan to be his agent. When the offer was delivered to Mr. Walker, it contained a provision limiting the time for acceptance to 48 hours. Mr. Walker rejected the offer out-of-hand as inadequate. After thinking about it for twenty-four hours though, Mr. Walker called agent Joan and said, "I've changed my mind. I'll take Buddy's offer." What is the status of Buddy's offer?
No earnest money is required to form a contract correct answers Contract law requires that what amount of earnest money be submitted with a sales contract?
Anything the parties agree on correct answers In order to have a valid contract, the good faith deposit must be paid in the form of:
Deposit the check in the brokerage's special trust account correct answers An earnest money deposit, if any is offered, is usually given to the broker at the time a sales contract is authorized by the offeror and presented to the offeree. Absent any contrary instructions in the sales contract,
the broker has a legal responsibility to:
The property owner(s) receive the interest correct answers A commercial or residential property manager may have a special trust account to receive security deposits, rents and other funds from
tenants. This account may earn interest. Who is the beneficiary of this interest?
Nobody's, until the transaction is either completed, rescinded, or breached correct answers Once both parties have signed a purchase and sale agreement and the buyer's earnest money check is deposited in the broker's special trust account, whose money is it?
Depositing client funds in the broker's operating account correct answers Commingling refers to:
Restitution correct answers What has occurred when a contract has been rescinded and each party returns to the other any consideration that has been tendered?
