6 - Contracts

Question 1

The clause that makes timely performance a condition of the agreement is called the:

Answer 1

Time is of the essence clause

Question 2

If a purchaser on a real estate contract, the seller will commonly make a claim for the buyer’s earnest money deposit. Regarding this circumstance, what is true?

Answer 2

The seller may claim earnest money typically, if no further legal action is taken against the buyer.

Seller picks ONE option of the 4 to move forward. Take the earnest or choose of 3 others. No double dipping.

Question 3

When is a binding agreement created between the buyer and seller?

Answer 3

When it is received by the buyer’s agent.

Question 4

To insert additional terms or supporting documentation into an original offer, a buyers agent would most likely use a(n):

Answer 4

Addenda / Exhibit

Hobbit contracts extra leaf

Question 5

Which of the following much be included in a valid real estate sales contact?
A: brokerage commission
B: street address
C: earnest money
D: consideration

Answer 5

D: consideration

Question 6

The legal remedy of terminating a contract and restoring the parties to their original position prior to contract is called:

Answer 6

Recession

Question 7

Prior to notification of the seller’s acceptance, a prospective buyer may:

Answer 7

Withdraw the offer and receive a full refund of the earnest money deposit