Chapter 12 True/False

Question 1

When both parties mutually agree to change one or more of the terms of an accepted offer, a licensee would use the WB-41 Notice Relating to Offer to Purchase.

True
False

Answer 1

False: The parties use a WB-40 Amendment to the Offer to Purchase.

Question 2

A counter-offer serves as a rejection of the offer and a submission of a new offer.

True
False

Answer 2

True: By using the counter-offer, the party making the counter is countering only the terms that vary from the original offer, and all terms remaining the same from the original offer are incorporated by reference.

Question 3

The correct way to number a WB-44 Counter-Offer is sequentially.

True
False

Answer 3

True: The note on the WB-44 instructs parties to number the form sequentially.

Question 4

When a party receives a WB-41 Notice Relating to Offer to Purchase, both parties must sign the form.

True
False

Answer 4

False: The party issuing the notice must sign it. A party receiving the notice does not sign it.

Question 5

The WB-42 Amendment to the Listing Contract is the form to use when the listing firm and seller want to change the listing price of the seller’s home.

True
False

Answer 5

True: The WB-42 Amendment to the Listing Contract is the approved form to alter any of the terms of the original listing contract.

Question 6

The WB-40 Amendment to Offer to Purchase is the correct form to use to negotiate between the three prospective buyers and the seller.

True
False

Answer 6

False: A seller uses a WB-46 Multiple Counter Proposal to negotiate with multiple buyers.

Question 7

Only the seller is required to sign the WB-25 Bill of Sale when the seller transfers the seller’s interest in personal property to the buyer.

True
False

Answer 7

True: The buyer and seller agreed to the specific items in the negotiation process of the transaction, therefore the buyer does not need to sign this form.

Question 8

The WB-40 Amendment to Offer to Purchase should be used when one party is unilaterally giving notice to another party relating to an accepted offer.

True
False

Answer 8

False: A party uses a WB-41 Notice Relating to Offer to Purchase.

Question 9

The WB-25 Bill of Sale must be attached to the offer to purchase to transfer the seller’s interest in personal property to the buyer.

True
False

Answer 9

False: A WB-25 Bill of Sale transfers title to the personal property upon the effective date in WB-25 Bill of Sale. The effective date is the date of closing. It may but does not need to be attached to the offer to purchase.

Question 10

The WB-45 Cancellation Agreement and Mutual Release is used to terminate a real estate contract when the parties mutually agree to terminate the original agreement.

True
False

Answer 10

True: Canceling the contract has the legal effect of the contract never having existed (rescission).

Question 11

An option to purchase agreement requires the seller to sell and the buyer to buy.

True
False

Answer 11

False: Only the seller is required to sell. A buyer is not required to exercise the option to purchase.