Chapter 11 Flashcards
What is an important legal feature of a contract?
- It represents a “meeting of the minds.”
- It must use precise wording in a document.
- It is not voidable.
- It can be created only by an attorney.
It represents a “meeting of the minds.”
A listing which allows the owner to sell the property himself without being liable for a commission, but which appoints only one broker to act as his sole agent is a(an)
- sole listing.
- open listing.
- exclusive right-to-sell.
- exclusive agency.
exclusive agency
If an offer to purchase real property has been presented to a seller, but NOT accepted, the offer
- may be withdrawn by the buyer at any time.
- must remain open until the seller responds.
- may be withdrawn, only with the seller’s permission.
- binds the buyer until the offer has expired.
may be withdrawn by the buyer at any time
Which of the following disclosures are not required in a sales contract?
- Lead-based paint
- Radon gas
- Utility costs
- Building code violation
Utility costs
An arrangement in which brokers pool their listings and all commissions are divided between the listing broker and the selling broker is
- an open listing.
- a multiple listing.
- an exclusive agency listing.
- an exclusive right-to-sell.
a multiple listing
When is a purchaser said to have “equitable title?”
- At the signing of the sales contract by the buyer
- At the time of closing
- Between the time of delivery and acceptance (notification) of the contract and actual closing
- At the time of the offer
Between the time of delivery and acceptance (notification) of the contract and actual closing
An unscrupulous investor completes a contract with a buyer to sell a property the investor does not own. What is true about the sale contract for this transaction?
- It is voidable.
- It must be in writing.
- It is void.
- It is illegal yet potentially enforceable.
It is void.
An Exclusive Right-to-Sell has been signed. What BEST describes the type and status of this contract?
- Unilateral executory
- Bilateral executory
- Unilateral executive
- Bilateral executive
Bilateral executory
In order to be in compliance with the Statute of Frauds, a sales contract must be
- in English.
- in writing.
- delivered.
- recorded.
in writing.
The parties created a contract by stating terms for compliance. This is BEST described as
- executed.
- implied.
- expressed.
- executory.
expressed
A listing agreement could be terminated by all of the following situations EXCEPT which?
- The house burns down.
- The owners cancel the listing in order to contract with the buyer and sell directly.
- The broker renounces the agreement.
- The seller revokes the agreement.
The owners cancel the listing in order to contract with the buyer and sell directly.
The Parol Evidence Rule most closely means
- anything in writing takes precedence over oral or verbal agreements.
- telephone recordings may be used as evidence in court.
- Persons on parole cannot enter into a contract.
- Parol contracts cannot be enforced.
anything in writing takes precedence over oral or verbal agreements.
The primary purpose of a listing agreement is to
- serve as a contract of employment between the seller and broker.
- list all the improvements and amenities of the property.
- serve as a guide for a sales contract.
- serve as a contract between the buyer and the seller.
serve as a contract of employment between the seller and broker.
The term “procuring cause” refers to
- the sales associate who first showed the property to the buyer.
- a “single agent” for the buyer only.
- the party who put the sale into effect.
- the first person to turn the contract in to the seller.
the party who put the sale into effect.
Which would be the best description of “culpable negligence?”
- When the sales associate knew or should have known of a defect
- When the sales associate is negligent in the care of his customer
- When the sales associate makes a statement that he knows is false
- When the broker doesn’t watch his sales associates when they perform their duties.
When the sales associate knew or should have known of a defect
