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Real Estate Exam > Contracts > Flashcards

Contracts Flashcards

1
Q

Legal essentials of a contract are (CMLC)

A

Capable parties, mutual consent, lawful objection, consideration

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2
Q

A valid contract is

A

Has all legal essentials

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3
Q

A void contract is

A

If missing even one essential, underage party, illegal consideration

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4
Q

A consideration is

A

Valuable, good, sufficient, adequate

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5
Q

What is a novation

A

One party or obligation substituted for another

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6
Q

Whats in a contingency

A

Nature, duration, method removed

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7
Q

What type of contracts do not need to be in writing

A

Personal property listing or lease for 1 year or less

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8
Q

A party able to enter into a contract

A

An emancipated minor

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9
Q

What does it mean when a mutual consent in real estate contracts

A

Offer and acceptance

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10
Q

What describes a cloud mutual consent

A

Misrepresentation, threats, duress

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11
Q

A voidable contract describes as

A

Binding until rescinded, not illegal purpose, fraud, misrepresentation

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12
Q

Actual fraud is described as intent to

A

Intent to deceive

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13
Q

Constructive fraud is

A

Negligence

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14
Q

If buyer loses ability to complete the purchase

A

The contract is unenforceable

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15
Q

In a purchase contract (offer to purchase) when is the effective date

A

Final acceptance delivers to offeror, when all parties signed

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16
Q

In a breach of the purchase contract, the buyer can sue seller within

A

Within 4 years

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17
Q

If a purchase contract is signed by only 1 spouse

A

It is unenforceable

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18
Q

In a purchase contract, what does “As Is” represent

A

Seller not willing to make repairs. Only includes observable conditions.

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19
Q

If seller backs out, what can the buyer do

A

Buyer (not broker) sues for specific performance

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20
Q

On owner occupied, liquidated damages cannot generally exceed coverage of

A

3% of purchase price

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21
Q

When do you receive copy of signed purchase contract

A

At time of signing

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22
Q

Purchase contract contains what aspect of time

A

Time is of the essence

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23
Q

Where does the contingency removal clause exist

A

In purchase contracts

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24
Q

What is a counteroffer

A

Rejection of original offer and a new one

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25
Q

Multiple counteroffers must be

A

Must be disclosed

26
Q

Listings are defined as what type of contract

A

Bilateral employment contract

27
Q

Who are involved in a listing

A

Competent parties

28
Q

In a listing agreement, the commission clause must be in

A

10 point font in bold

29
Q

If a salesperson leaves broker, what happens to the listing

A

Listing stays with broker

30
Q

In an exclusive listing, it must have

A

Must have definite termination date

31
Q

An example of definite termination date for an exclusive listing is

A

90 days from signing

32
Q

In a residential listing agreement (seller reserved) if the owner sells (brings buyer)

A

No commission is owed

33
Q

In an exclusive right to sell, if the property sells

A

Pay commission

34
Q

In an open listing, if there are multiple brokers, who gets paid

A

The procuring cause gets paid

35
Q

In a net listing, owner nets his proceeds when

A

Before broker gets paid

36
Q

Describe the protection period clause in a listing agreement

A

Broker gets paid based on what happens after listing expires

37
Q

Where does the authority for broker to get paid get stated?

A

In the listing and must be in writing

38
Q

What protects from false information from seller

A

Hold harmless clause

39
Q

What describes leases

A

Rights of possession for paying rent

40
Q

When can you sublease or assign

A

If lease does not prohibit it

41
Q

Unwritten lease for more than a year is

A

Unenforceable

42
Q

Lessee who didn’t sign lease is what type of contract

A

Implied contract

43
Q

What’s a percentage lease in retail

A

Percentage of gross sales

44
Q

Maximum term for agricultural lease is

A

51 years

45
Q

In a net lease, tenant pays

A

Tenant pays fixed and variable expense

46
Q

If landlord does not maintain property

A

Tenants released by constructive eviction

47
Q

What is the agreement when you surrender

A

Agreement to terminate lease early

48
Q

What is an abandonment

A

Tenant vacates early

49
Q

What is estate of sufferance

A

Tenant stays after lease expires

50
Q

If the principal cancels before listing expires, principal could owe

A

Could owe 2 commissions

51
Q

If no written agreement, payment of commission can still be

A

Payment of commission permissible

52
Q

If no written extension of listing and it expires, what happens to the commission

A

Quite probably no commission

53
Q

Purchase of time share interests can be rescinded in how many days

A

Rescind in 7 days

54
Q

What is an example of unilateral contract

A

Options

55
Q

When a buyer is in an option contract

A

Optionee (buyer) is not bound to perform

56
Q

If seller is in an option contract

A

Optionor (seller) must sell to optionee

57
Q

In an unilateral contract, options and listing

A

Must disclose all

58
Q

In an advance fee contract, broker cannot

A

Cannot guarantee transaction

59
Q

For an advanced fee contract, how many days must you submit materials to commissioner

A

Not less than 10 days before publication

60
Q

A contract that is not to be performed within 1 year must be in writing is in which legal doctrine

A

Statute of frauds

Real Estate Exam (8 decks)

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