Chapter 11

Question 1

A time clause in a contract of purchase and sale allows a party to invoke a time period in which a ___ precedent must be __. If this does not occur within the time period, the result would be ___ of the contract.

Answer 1

condition precedent
removed
termination

Question 2

What happens when a contract contains a subject clause that is too subjective?

Answer 2

When a contract contains a subject clause that is too subjective, the courts will declare that the contract process must still be regarded as at the offer stage until the subject is removed.

Question 3

A deposit is:

Answer 3

an amount deposited with a brokerage by the purchaser when an offer to purchase is made.

Question 4

The ___ Act is a ____ statute designed to eliminate privately imposed restraints on trade

Answer 4

Competition Act

Federal statute

Question 5

A brokerage that holds a deposit on behalf of all the parties to a real estate contract, unless agreed to otherwise, holds that deposit as ___.

Answer 5

stakeholder

Question 6

TF? A potential purchaser of real estate can enforce the terms of a listing agreement.

Answer 6

False. Only the parties to a contract can enforce its terms. The parties to a listing agreement are the agent(s) and seller(s). Therefore, purchasers cannot enforce the terms in a listing agreement because they lack privity of contract.

Question 7

Which of the following correctly describes a listing price?

Answer 7

The value at which a property is advertised for sale.

Question 8

A licensee must report a “large cash transaction” to ___ if he or she receives more than $____ in cash in the course of a single transaction

Answer 8

FINTRAC

$10,000

Question 9

Define listing agreement

Answer 9

A contract between an owner(vendor) and a real estate licensee whereby the licensee agrees to try to find a purchase for the listed property in return for the vendor paying a stipulated amount of commission should the licensee be successful.