Contracts And Relationship With Buyers And Sellers Flashcards
What form would be used to ask for a different closing date during escrow?
An addendum
When writing an offer, a licensee may
Fill in the blanks
During escrow what rights does a buyer have to the subject property?
Equitable title
When does an offer expire?
As per the offer terms
Can a seller accept an offer that has expired?
Yes, but the buyer needs to acknowledge the late acceptance
What does lis pendens mean?
Lawsuit pending
Can a seller accept an offer from buyer #2 while waiting to hear if buyer #1 will accept the seller’s counter-offer?
Yes, but they should withdraw the counter-offer made to buyer #1
Which is not a seller’s remedy after a buyer default during escrow?
Misrepresentation
If two parties sign a contract to rob a bank it is?
Void
What law says a real estate contract must be in writing?
Statute of Frauds
If a party signs a contract because they fear for their life, what has occurred?
Duress
Transferring an intangible right to a contract in escrow is called?
Assignment
A lender can transfer their interest to a loan to another lender with this provision
Novation
Putting parties back to their original position before the contract was formed is called
Rescission
A party can use the courts to force a party to an earnest money agreement to preform per the contract with this
Specific performance
Settling for the earnest money deposit as a remedy for a contract default is called
Liquidated damages
Which type of listing agreement allows a seller to list with 4 brokers and only pay the one who sells it?
Open listing
Which type of listing agreement allows a broker to insist on payment of the commission regardless of who sells the property?
Exclusive right to sell
What is true regarding an option in real estate?
It must have consideration, they are optional, they are illegal, or they may not be assigned
a. It must have consideration
In a typical land sales contract, when does the buyer get legal title to the property?
When they make the last payment
What arrangement allows a neutral third party to follow the instructions of the sale after closing?
Escrow agreements
As agents, what may we do with a pre-printed offer to purchase?
Fill in the blanks for ourselves
If the buyer wishes to extend the closing date of a contract in escrow, what would you use?
An addendum
Who is the party making a counter-offer?
The offeror
The contract clause that allows a broker to seek the court’s help to determine which party gets the earnest money in a disputed sale is
Interpleader clause
Can a seller fire their listing broker?
Yes, but the seller may be liable for damages
if a party signs a contract while on drugs it is
Voidable
If a seller changes the down payment requirement but not the price in a counter, is it a deal?
Only if the buyer agrees in writing to the change
What is defined as an offer rejection and a counter-proposal back?
Counter-offer
What is an executory contract?
A contract awaiting completion
Which is not a type of seller listing contract?
Exclusive agency listing, open listing, exclusive right to sell listing, exclusive open listing
Exclusive open listing
An agreement to keep open the right to buy a property at a certain price but has no buyer performance obligation is called?
Option
Exclusive right to sell means?
The listing broker gets paid regardless who sells it during the listing period
What happens to a real estate contract when one of the principals dies?
The seller’s estate may be liable to complete the contract
If a party signs a contract while intoxicated it is?
Voidable
Broker himself is the buyer, but the sale falls. Is it OK for the broker to give himself back the deposit without the seller’s written consent?
If the contract terms stipulate the return this way
