Chapter 11 Flashcards
If a breaching buyer records a Notice of Lis Pendens, the seller can recover any decline in the property’s value after the date of the breach until the buyer stops interfering with resale efforts.
a. True
b. False
A
_____________ are a transactional expense a seller may recover on a buyer’s breach.
a. Escrow charges
b. Payoff demands
c. Both a and b.
d. Neither a nor b.
C
Recoverable losses are limited to those a seller incurs from the date of a buyer’s breach until:
a. the date a resale closes.
b. the date of the withdrawal of the property from the market.
c. the later of the two dates above.
d. the earlier of the two dates above.
D
For a seller to keep the entire deposit on the buyer’s breach, the seller needs to provide an accounting showing their losses equaled or exceeded the amount of the deposit.
a. True
b. False
A
Without a liquidated damages provision, a seller is not entitled to recover their money losses caused by a buyer’s breach.
a. True
b. False
B
A liquidated damages provision is voidable if the amount is not reasonably close to actual losses.
a. True
b. False
A
An arbitrator’s award is binding and final, regardless of any defect resulting from an error of fact or law, unless the arbitration provision provided for judicial review.
a. True
b. False
A
Any defect in the arbitrator’s award resulting from an error of fact or law, no matter how flagrant, is neither reviewable nor correctable, unless:
a. the arbitrator exceeded their authorized powers.
b. the arbitrator acted with fraud or corruption.
c. Either a or b.
d. Neither a nor b.
C
Even if an arbitrator bases their decision on an incorrect interpretation of the facts or the law, neither party has recourse to change the erroneous decision.
a. True
b. False
A
Addenda which may be attached to a purchase agreement include:
a. property disclosures.
b. agency relationship disclosures.
c. financing disclosures.
d. All of the above.
D
