cemap 2 Flashcards
Alan has agreed to pay Toyah £130,000 for her flat, and Toyah has agreed. In relation to contract law, these actions represent:
offer and acceptance.
Rashid has previously been happy for his agent Nirmal to authorise contracts on his behalf, even though several were outside the remit of their written agency agreement. Last week Nirmal authorised a contract but Rashid has refused to honour it. How might Nirmal be able to avoid personal liability for any legal action? By claiming:
apparent authority.
Apparent authority occurs when the agent carries out a number of actions outside their remit with the principal’s full knowledge, which gives the impression that the principal is happy that the remit has been extended.
An estate agent is insisting he is legally entitled to his commission, even though the property was sold to a buyer introduced directly to the vendor by a friend. Which type of agreement must the vendor have signed with the agent?
Sole selling rights.
An energy performance certificate must be
commissioned before a property can be marketed for sale or rent.
Which of the following would be special conditions in a mortgage offer letter, as opposed to standard conditions? Select all that apply
Requirements in relation to completion of roads and access.
Retention conditions.
Requirement for the redemption of any existing mortgages on, or before, completion.
Jared and Tanya have received a final mortgage offer from their lender. Which of the following is true?
There are limited circumstances in which the lender can withdraw the offer
From the dropdown menus, select whether each of the following statements is true or false.
Only the vendor is responsible for any damage to the property between exchange of contracts and completion A = F
Both parties are legally bound to complete the transaction once contracts are exchanged. A= T
The buyer should put buildings insurance in place on exchange of contracts. A = T
Contracts may contain a long-stop date condition to allow the buyer an extension if there are problems with their mortgage. A = F
The buyer pays a refundable deposit on exchange of contracts. A = F
It may be possible to exchange contracts on the condition that the buyer could withdraw later without penalty if they cannot sell their property. A = T
Kevin makes a successful bid for a flat at a property auction. Which of the following applies?
He must have a mortgage agreed or funds available before making the bid.
Katrina has made a successful bid for a property through the modern method of auction. This means she:
has a maximum of 56 days to complete the purchase.
John is acting as agent for Donna. John carries out a transaction that appears to be outside his authorisation but Donna confirms that she is happy with what he did. The technical term for this is:
ratification.
An Energy Performance Certificate (EPC):
must be commissioned before the property can be marketed.
Which of the following would not be a legitimate reason to arrange exchange of contracts on a conditional basis? Exchange is conditional subject to:
satisfactory valuation of the property.
