Chapter 12 Flashcards
An equity purchase (EP) agreement needs to be in the same language used to negotiate with the seller.
a. True
b. False
A
Under EP laws, _______________ are business days.
a. Saturdays
b. most state holidays
c. Both a and b.
d. Neither a nor b.
C
If a buyer’s agent fails to deliver an EP disclosure to the seller, the EP agreement is:
a. void.
b. voidable by the seller-in-foreclosure.
c. voidable by the buyer.
d. None of the above.
B
A seller-in-foreclosure may recover their property within ________ after the close of escrow if the EP investor took unconscionable advantage of them.
a. six months
b. one year
c. two years
d. three years
C
Both the lack of meaningful choice and terms unreasonably favorable to the EP investor need to exist to show unconscionability.
a. True
b. False
A
To analyze an income property, a buyer’s agent may ask the seller’s agent for:
a. information regarding maintenance procedures.
b. a rent roll spread sheet.
c. an occupancy history.
d. All of the above.
D
_______________ is considered cash boot.
a. A carryback promissory note
b. Personal property
c. Both a and b.
d. Neither a nor b.
C
In an option agreement, a prospective buyer is referred to as:
a. an optionor.
b. an optionee.
c. offeror.
d. offeree.
B
Without consideration, an option is merely an offer to sell which the seller may withdraw.
a. True
b. False
A
A particular manner for exercising an option needs to be specified in an option agreement.
a. True
b. False
B
