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New York Real Estate > Chapter 8 > Flashcards

Chapter 8 Flashcards

1
Q

What is a real estate contract an example of? Which type of contract? Bilateral or unilateral?

A

Bilateral contract

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2
Q

What is a bilateral contract?

A

Two parties agree to terms of a contract

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3
Q

What is a unilateral contract?

A

Only one person is bound under a contract

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4
Q

What is an executed contract?

A

A fully formed contract

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5
Q

What is an executory contract?

A

A contract not yet fully performed, something remains to be done

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6
Q

What is a void contract?

A

There’s no legal force or effect

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7
Q

What is a voidable contract?

A

May or may not be legally enforceable

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8
Q

What is the difference between a void and a voidable contract?

A

Avoid contract has no legal force and a voidable contract may or may not be enforceable

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9
Q

What is a valid contract?

A

Binding and enforceable on all parties to the contract

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10
Q

What prohibits the licensee from the unauthorized practice of law

A

Duncan and hill

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11
Q

If a man drives into a gas station and tops office gas tank is obligated to pay for the fuel through what kind of contract?
A.  Express
B. Implied
C. Oral
D. Voidable 

A

Implied

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12
Q

A contract is said to be bilateral if

A. One of the parties is in my name
B. The contract has yet to be fully performed
C. Only one party to the agreement is bound to act
D. All parties to the contract are bound to act

A

D

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13
Q

A contract for the sale of real estate that doesn’t stay the consideration to be paid for the property would be
A. Void
B. Implied
C. Enforceable
D. Executors

A

Void

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14
Q

A 17-year-old signed contract to buy a home for himself. What contract is this?

A

Voidable contract

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15
Q

During the period Of time as a real estate sales contract signed before title actually passes the status of the contract is

A

Executors

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16
Q

Which written agreement is most commonly used by real estate licensees?
A. Mortgage documents
B. Commercial loan documents
C. listing agreements and buyer broker agreements

A

C

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17
Q

Under the statute of frauds, any contract for the sale real estate must be
A. Drawn up by a lawyer
B. On a pre-printed form
C. In writing
D. Accompanied by an earnest money deposit

A

In writing

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18
Q

I better send an offer to purchase a property for $10,000 less than the asking price and deposit $5000 with broker. The owner can I be rich to tell her of the signed document. At this point the document is
A. Voidable contract
B. An offer
C. Executors agreement
D. Implied contract 

A

An offer

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19
Q

Pages that are added to the pre-printed form of contracts are called

A

Riders

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20
Q

Unless otherwise agreed to in the purchase agreement how many days must a buyer who purchases a home built before 1978 before the contract becomes binding?

A

10 days

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21
Q

A suit for specific performance of a real estate contract asks for
A. Money damages
B. A new contract
C. A Deficiency judgment
D. A forced sale or purchase

A

D

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22
Q

A buyer has decided not to purchase the sellers house. The sellers compensation for the buyers failure to live up to the contract is called what?
A. Forfeit
B. Liquidated damages
C. Cancellation funds
D. Rescission money

A

B

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23
Q

What is an escape clause?

A

If I as a buyer wanted to buy someone’s home, but I want a clause saying that me purchasing her home is contingent on being able to sell my home first, and the seller is willing to do that but wants to put in a clause that lets her get out of the agreement if another seller comes forward

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24
Q

A couple offers, in writing, to purchase a house for $140,000 including the drapes in the house. The offer expires Saturday. The sellers reply, in writing, on Thursday, excepting $140,000 but excluding the drapes. On Friday while the buyers are considering this counter offer, the sellers decide to accept the original offer, drapes included, in writing. At this point, the buyers

A. I’m not bound to buy and can forget the whole thing
B. Must buy but are not entitled to the drapes
C. Most by and have a right to insist on the drapes

A

A

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25
Q

What is the name for the cash deposit offered when making an offer to purchase real estate?

A

Earnest money deposit

26
Q

Events that excuse performance of either party to the contract are called
A. Contingencies
B. Reasons to cancel
C. Force majeure 

A

A

27
Q

What is this an example of?

The sales contract says that the buyer will purchase the property only if his wife flies up to New York and approve the sale by the following Saturday. His wife’s approval is a?

A

Contingency

28
Q

A voluntary agreement between legally competent parties to perform refrain from performing some legal art, supported by legal consideration

A

A contract

29
Q

What are the four things that a contract may be?

A

Express or implied

Executory or executed

Unilateral or bilateral

Valid, void, avoidable, or unenforceable

30
Q

The parties state the terms and show their intentions in words. It can also be oral or written. What kind of contract is this?

A

Express contract

31
Q

What does the statute of frauds require?

A

That any contract for the purchase and sale of a parcel of real property in whole or in part must always be in writing to be enforceable

32
Q

Which kind of contract is option an example of?

A

Unilateral contract

33
Q

Which contract is this: both parties promise to perform under and as required by the contract and one promise is given in exchange for another

A

Bilateral contract

34
Q

Which contract does this remind you of? I will do this and you dwill o that

A

Bilateral

35
Q

Which contact is this: a one-sided agreement where one party makes a promise to be kept only the second party does something, but the second party is not legally obligated to act or perform. However if the second party does comply, the first party must keep the promise

A

Unilateral contract

36
Q

Which. Contract is option an example of?

A

A unilateral contract, “I will sell you this property for $100,000 within two years if you wish”

37
Q

Which kind of contract is an open listing an example of?

A

Unilateral contract

38
Q

Which contact is this: both parties fulfilled their promises and fully performed the contract

A

Executed contract

39
Q

Which contract is this: some thing remains to be done, ex: sales contract before the closing

A

executory contract

40
Q

Which kind of contract is a mortgage an example of, executed or executory?

A

Executory contract because although the mortgage is signed by the buyer, it remains executory until all payments have been made by the borrower to the lender

41
Q

Which type of contract may be disaffirm by one party? void, voidable, valid, or unenforceable

A

Voidable

42
Q

What’s the difference between a voidable contract and unenforceable?

A

They both seem to be valid on the surface but in an unenforceable contract, you can’t sue someone to force performance

43
Q

What are the five essentials to have a valid contract?

A

Competent parties over 18 years old, offer and acceptance meaning mutual consent (must be meeting of the minds), consideration (promise to give to each other), statute of frauds, and legality of object or contract (must have nothing illegal in contract)

44
Q

Which contract would you have if it was signed by a person who is under duress or undue influence?

A

Voidable contract

45
Q

What is it called when a contract must be performed within the time limit that a specified and any party who has not performed on time is Dan to have breach the contract?

A

Time is of the essence

46
Q

An amount of money agree to an advance by buyer and seller, that serves as a total compensation if one party does not live up to the contract

A

Liquidated damages

47
Q

What is another word for breach of a contract where you failed to perform the terms of the contract without a legal excuse?

A

Default

48
Q

If a seller defaults, what are the 3 Alternatives that the buyer can take?

A

The buyer can resend or cancel the contract and recover earnest money deposit

The buyer my file a quart suit known as an action for specific performance that forces the seller to perform the contract that is, sell the property

The buyer may sue the seller for compensatory damages

49
Q

If a buyer defaults in a contract, what are the actions the seller can take?

A

Declare the contract forfeited

Rescind the contract

Sue for specific performance

Sue for compensatory damages

50
Q

Agreements or clauses added to a contract is known as what

A

Riders

51
Q

The most basic document in real estate

A

The contract of sake because it sets out the agreement between buyer and seller and establishes their legal rights and obligations in detail

52
Q

The 6 essentials of a valid contract for the sale of a property are:

A

Competence

Agreements to buy and sell

Contracting in writing

Adequate description of property

Consideration

Signatures of the parties

53
Q

An option agreement is a one way street for the party receiving the option. True or false.

A

True

54
Q

How is meeting of the minds usually accomplished?

A

Through offer and acceptance

55
Q

With contracts for the purchase of some types of personal property, the buyer has three days to reconsider or resend the contract. Are you allowed to resend a contract for the purchase of real estate?

A

No, it only applies to personal property, not real estate purchases

56
Q

A buyer who signs a contract to purchase real estate does not receive title to the land. Only delivery of a deed can actually convey title. However after the contract is signed the buyer has a right known as what?

A

Equitable title

57
Q

What is this know as?

  • a down payment, initial equity, or contract deposit that gives evidence of the buyers intention to carry out the terms of the contract
  • Generally 10% of the purchase price and often held by the party holding the escrow
  • not essential, but customary to provide a cash deposit when making an offer to purchase real estate
A

Earnest money deposit

58
Q

Stealing = conversion

True?

A

True

59
Q

Can a broker hold all earnest money deposits (in an escrow bank account) in the same account for every client or can he have one account where all the deposits go?

A

He can have one account for all deposits

60
Q

A broker must place earnest money in his account no later than how many business days following receipt of the funds?

A

3

New York Real Estate (18 decks)

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