Contracts

Question 1

specific performance

Answer 1

court ordered obligation to fulfil contract

Question 2

Seller Closing Costs (6)

Answer 2

Commission
Transfer Tax
Existing mortgage
Mortgage discharge fee
deed prep
proration of taxes

Question 3

Buyer Closing Costs (14)

Answer 3

purchase price/down payment
transfer tax
tax proration
boundary survey
mortgage loan inspection
title search
title insurance
credit report fee
loan origination fee
recording fee
appraisal fee
prepaid mortgage interest
hazard insurance
attorney's fees

Question 4

Buyer credits (2)

Answer 4

earnest money

rent proration

Question 5

Seller Closing Credits (2)

Answer 5

Purchase price (sales price)
Sale of personal property

Question 6

bilateral contracts

Answer 6

mutual promises; must be communicated

Question 7

unilateral contracts

Answer 7

promise by one party and act by the other

Question 8

Requirements for valid contracs (5)

Answer 8

competent parties
mutual assent
offer and acceptance
consideration
legality of object

Question 9

Ways Contracts are Voidable (4)

Answer 9

misrepresentation
fraud
undue influence
duress

Question 10

misrepresentation

Answer 10

false statement of material fact

Question 11

fraud

Answer 11

intentional false statement of material fact

Question 12

undue influence

Answer 12

any improper or wrongful influence by one party over another whereby the will of a person is overpowered so she is induced to act or prevented from acting on free will

Question 13

duress

Answer 13

inability of a party to exercise their free will because of fear of another party

Question 14

Agency Relationships

Answer 14

Listings - between seller and broker

Buyer - between buyer and brokerage

Question 15

Types of Listing Contracts (3)

Answer 15

1. Open
2. Exclusive Agency
3. Exclusive Right to Sell

Question 16

Open Listing

Answer 16

listing given to one or more brokers wherein the broker procuring the sale is entitled to the commission but imposes no commission obligation on the owner in the event the owner sells the property to a person who was not interested in the property by one of the listing brokers.

Question 17

Exclusive Agency

Answer 17

listing given to one broker only who is entitled to the commission if the sale is effected by the broker or agent of the listing broker but imposes no commission obligation to the owner in the event the owner sells the property to a person who was not interested in the property by the listing broker/agent

Question 18

Exclusive Right to Sell

Answer 18

listing given to one broker only who is entitled to the commission if the property is sold by anyone during the time of the listing contract

Question 19

Bond for Deed

Answer 19

aka contract for deed or land contract; contract of sale and method of financing by the seller for the buyer

Question 20

option to purchase

Answer 20

a contract whereas the owner sells the right to purchase his property to a prospective buyer