10 - Sales Contracts (1 / 5)

Question 1

Earnest Money handling - Prov Broker and BIC

Answer 1

Prov brokers must all deliver monies received to their BIC immediately.

BIC has 3 days to deposit the money, not the provisional broker

Question 2

Offers become contracts when

Answer 2

signed, initialed and that acceptance is communicated (electronic, verbal or written) back to the offeror and/or their agent

Question 3

Uniform Electronic Transaction Act

Answer 3

Any form of communication of the acceptance of an offer is permissible

Question 4

Option (optionor vs. optionee)

Answer 4

Optionor is bound, but the optionee has no obligation to purchase the property

Question 5

Installment Land Contract a/k/a Contract for Deed a/k/a Land Contract

Answer 5

Seller retains title and the buyer will not receive title until making the last payment

During repayment period, buyer holds equitable title and seller holds legal title

Question 6

Multiple Offers

Answer 6

Not material fact, does not have to be disclosed; must have consent from seller and offerors to disclose

Question 7

Contingent Sale Addendum

Answer 7

Used when buyer has to sell a currently owned property in order to complete transaction w a seller