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Chapter 5 Part 2 Real Estate ( Questions &Exam (elaborations) answers 100% satisfaction guarantee
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Chapter 5 Part 2 Real Estate ( Questions &Exam (elaborations) answers 100% satisfaction guarantee
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STUVIA 2024/2025Chapter 5 Part 2 Real Estate
"in-house" - ✔✔another name for dual agency
(included in a back up offer), in the contract that states that the buyers can withdraw at any time up
until they are notified that their offer has been elevated to the primary offer. - ✔✔a back-up provision
clause
1. Disclosure of material facts
2. Reasonable skill and care
3. Honesty and fair dealing
4. Prompt presentation of all written offers and counter-offers - ✔✔Agents fiduciary duties for a
customer? (DRHP)
1. obedience ( do everything the client ask if legal)
2. loyalty ( put clients intrest over your own)
3.disclosure (Licensees must disclose to their clients any fact known to them that relates to the
transaction.)
4.confidentialy
5. accounting
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6. reasonable skill and care - ✔✔agent fiduciary duties (old car)
1. Withdrawal: Either side may withdraw an offer at any time prior to its ratification.
2.Rejection: The party to whom the offer was made (seller) may reject it at any time prior to
acceptance (unless the offer expires after a specified period of time).
3. Counter-offer: By making a counter-offer, the initial offer is terminated and replaced by a new offer.
In this case, the roles are reversed. The buyer now becomes the person accepting or rejecting the
offer.
4. Lapse of time: Typically offers are automatically terminated if they are not accepted by a deadline,
as established by the parties.
5. Death or insanity: The death or insanity of either party prior to acceptance will terminate an offer. -
✔✔when wanting to terminate an offer what are there options?
1) Cameron= 3rd party
2) Phyllis = 3rd party
3) Nancy= not a third party bc she is not involved in the transaction
4) travis= 3rd party - ✔✔You're the listing agent for Mariza and Daniel Ochoa. At the open house,
you're introduced to the following cast of characters:
Cameron: Potential buyer
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Phyllis: Real estate agent representing Cameron
Nancy: Cameron's best friend
Travis: The lender
Identify whether each person is a third party or not a third party from your standpoint.
1) Submitting a large earnest money deposit
2).Making sure your clients are pre-approved
3.)Shortening or waiving some contingencies
4. )Making a good offer (don't go in with a lowball offer in a multiple-offer situation)
5)Offering more favorable terms that meet the seller's needs
6)Writing a personal letter to the sellers - ✔✔Ways to improve your clients chances in a multiple
offer?
a back up offer - ✔✔acknowledges that there is an existing offer and essentially says that if the first
buyer cancels, then the new buyer is automatically in contract with the seller?
a bilateral, written agreement - ✔✔Every licensee is a facilitator, until
something—_______________________—changes that status.
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a buyer puts in offers on several different properties at the same time. While this action is legal in
most states, you should caution your clients that they could find themselves with simultaneous
acceptance offers, in which case, they must be prepared to immediately revoke the offer for the
house(s) they don't want. - ✔✔a stimultaneous-offer
a purchase agreement - ✔✔what is an offer usually in the form of?
a written proposal to purchase a home, usually in the form of a purchase agreement - ✔✔an offer
adverse material facts - ✔✔What are facts called when they would significantly affect the desirability
or value of a property, and/or indicate to a reasonable person that one of the parties in a transaction
can't or won't complete the obligations of the contract?
agent - ✔✔facilitator or agent?
You're the listing agent for your friend Carolyn's house. Potential buyer Sherie calls you and asks you
to show her the house. At the showing, you provide all necessary agency disclosures and explain that
you represent the seller. Sherie doesn't have representation.
agent - ✔✔facilitator or agent?
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Eddie is a buyer who met with you once to get some MLS listings, but he didn't want you to represent
him. After falling in love with an open house, Eddie calls to say he wants to sign a representation
agreement now so you can help him negotiate.
all parties - ✔✔Tennessee law requires that licensees disclose timely and accurate market
conditions to whom?
An agent can't share any information the agent's client asks to be kept confidential. - ✔✔the duty of
confidentiality
An agent must account for any funds received on clients' behalf (o if a buyer client hands their agent
an earnest money check for safekeeping, the agent must keep it safe until it's time to deliver it to the
appropriate party, such as an attorney or an escrow office.) - ✔✔the duty of accounting
an offer - ✔✔a request to enter into a contract?
an offer - ✔✔what is not a contract and is a request to enter into a contract?
Any person who is involved in a transaction in which you're involved—and who is not your client—is a
third party to you (Customers, lenders, appraisers, and other service providers are all third parties.) -
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✔✔Who is the third party in a transaction?
back up offer - ✔✔what type of offer is when the seller already has accepted another offer?
backup offer - ✔✔A ______ acknowledges that there is an existing offer and essentially says that if
the first buyer cancels, then the new buyer is automatically in contract with the seller.
binding contract - ✔✔both parties are in complete agreement about each and every term. Once that
happens and the documents have been signed, the offer is officially accepted and a _____________
is formed.
binding contract - ✔✔Once accepted by all parties, the purchase agreement becomes a
______________
Brooke should let the buyer know that property in that neighborhoods may be rezoned to allow
commercial use - ✔✔Brooke Sales represented a group of investors that bought several properties
in a neighborhood. The group was planning to work with the zoning commission to have the
neighborhood rezoned to allow properties to be used commercially. Later, a potential buyer contacted
Brooke. What should she do?
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