Chapter 8 Flashcards
The use of a _______________ requires a written carryback disclosure form on one-to-four unit residential property when the seller will partially finance the sale.
a. land sales contract
b. lease-option
c. an unexecuted purchase agreement with interim occupancy
d. All of the above.
D
carryback seller is concerned with:
a. receiving no more than the fair market value (FMV) of the property.
b. their loan-to-value (LTV) ratio of the purchase price.
c. Both a and b.
d. Neither a nor b.
B
Adjustments and prorates for unpaid and prepaid items are noted on a seller’s net sheet.
a. True
b. False
A
During a buyer’s market of declining prices and increasing inventory, a sales agent’s main objective is to create buyers.
a. True
b. False
A
To form a contract, an agreement needs to be accompanied by:
a. an offer and acceptance.
b. consideration.
c. capable parties and a lawful purpose.
d. All of the above.
D
To be definite and certain in its terms, an offer to purchase needs to include:
a. a description of the property.
b. the time for performance.
c. Both a and b.
d. Neither a nor b.
C
An offer to purchase needs to be on a standardized form to be enforceable.
a. True
b. False
B
An option to buy agreement is a bilateral contract.
a. True
b. False
B
A seller who is not represented by a broker forms a binding contract with a buyer when:
a. they are handed a copy of the buyer’s signed counteroffer.
b. they receive a faxed copy of the buyer’s signed counteroffer.
c. Both a and b.
d. Neither a nor b.
C
_______________ terminates an offer to purchase.
a. Death of the offeree
b. Revocation by the offeror before an acceptance is submitted
c. Destruction of the property before acceptance
d. All of the above.
D
