Ch 7

Question 1

The financial terms under which a property will be purchased must be included in the _____

Answer 1

Purchase agreement

Question 2

T/F:
The buyer wants the deposit check to be held uncashed until the offer is accepted, after which it must be deposited into the broker’s trust account within three business days. This is the default method of handling deposit checks, so the agent doesn’t need to check off any other boxes.

Answer 2

False

The default provision in this form calls for the deposit check to be deposited with the escrow holder after acceptance. You should check the appropriate box if it will be deposited in your broker’s trust account instead.

Question 3

If a home buyer breaches the purchase agreement, the seller may retain the good faith deposit (or a portion of it) if the buyer and seller have initialed the ____ clause.

Answer 3

Liquidated damages

Question 4

T/F: When filling in the interest rate, it’s a good idea to use the higher end of what the buyer can afford.

Answer 4

True

This helps ensure that the sale will go through even if interest rates go up before closing.