Contracts Take Home Flashcards
The buyer, seller, and their agents participated in a false, fictitious real estate contract, which they submitted to a lender. Which parties would be guilty of substantial misrepresentation?
1) Buyer and real estate broker
2) Seller and real estate broker
3) Both 1 and 2
4) Neither 1 nor 2
Both 1 and 2
Consideration in a contract _______________
1) is not essential.
2) may be an exchange of promises.
3) is more than ten percent of the purchase price.
4) All of the above
may be an exchange of promises.
Competent parties are essential for the validity of a contract. In addition, what else is required in order for the contract to be valid?
1) Recording
2) Legality of object
3) Acknowledgement
4) All of these
Legality of object
The Uniform Vendor and Purchaser Risk Act provides that when property under contract of sale is destroyed by fire prior to the transaction being closed, at no fault of the purchaser who is not in possession, the assumption of risk falls upon the _______________
1) buyer.
2) lender.
3) seller.
4) insurance company.
seller
A listing contract that provides for the payment of a commission to a broker even though the owner makes a sale without the aid of the broker is known as _______________
1) an “Exclusive Agency” listing.
2) an open listing.
3) an option.
4) an “Exclusive Right to Sell” listing.
an “Exclusive Right to Sell” listing
The Statute of Frauds involves contracts which must be in writing to be enforceable. Which of the following falls within the Statute of Frauds?
I. A contract for the sale of real property.
II. A contract for the sale of an interest in real property.
III. A contract for the leasing of real property for two years.
1 ) I only
2 ) I and II only
3 ) I and III only
4 ) All of these
All of these
Often in real estate documents the legal phrase “et al” is used. The closest English meaning of that phrase is _______________
1) and husband.
2) and others.
3) and wife.
4) and broker.
and others.
The substitution of a new contract and/or party for an existing one is _______________
1) novation.
2) breach.
3) option.
4) subterfuge.
novation.
In a real estate sales transaction, the amount of the earnest money deposit is determined by _______________
1) the broker.
2) a minimum of 5% of the sale price.
3) agreement of the parties.
4) the real estate license law.
agreement of the parties
Before a new condominium can be sold in Oregon, the buyer must receive a copy of the _______________
1) disclosure statement.
2) declaration.
3) bylaws.
4) All of the above
All of the above
Which of the following is an example of a unilateral real estate agreement?
1) Mortgage
2) Trust Deed
3) Option
4) Land sale contract
Option
Under the Statute of Frauds, all contracts for the sale of real estate must be in writing to be enforceable in court. The principal reason for this statute is to _______________
1) prevent the buyer from defrauding the seller.
2) protect the general public from fraud due to unrecorded deeds.
3) prevent perjury and fraudulent proof of a fictitious oral contract.
4) protect the buyer from the broker.
prevent perjury and fraudulent proof of a fictitious oral contract.
In anticipation of a breach of contract, the parties may specify in the contract the amount of damages to be paid in case of a breach. This is known as the _______________
1) collectable damages clause.
2) liquidated damages clause.
3) the habendum clause.
4) declaratory evidence clause.
liquidated damages clause
An executory contract is always a _______________
1) contract with an executor of an estate.
2) contract that has been fully performed.
3) written contract that cannot be altered by an oral agreement.
4) contract that is being performed.
contract that is being performed.
What is a rescission of a contract?
1) A return to the situation as it was before the contract was executed.
2) A ratification of a contract by all parties.
3) A revision in the terms of a contract.
4) A transfer of responsibility from one of the parties to the contract to an interested third party.
A return to the situation as it was before the contract was executed.
A public report, when it is required, must be given to the purchaser prior to _______________ 1) negotiation of the sale.
2) viewing of the property.
3) closing.
4) execution of the binding sales agreement.
execution of the binding sales agreement.
When the parties to a contract have fully performed the terms, the contract may properly be described as _______________
1) expressed.
2) secured.
3) acknowledged.
4) executed.
executed
Which of the following is the best explanation of specific performance?
1) The date set for closing, at which all parties involved, or their attorneys, must be present and must sign and deliver all documents necessary to close the transaction. 2) When either party has the right to cancel the contract provided legal notice is given. 3) A legal procedure or action brought by either the buyer or seller to enforce the terms of a sales contract.
4) A legal procedure or action brought by the tenant, requiring the lessor to produce a lease.
A legal procedure or action brought by either the buyer or seller to enforce the terms of a sales contract.
In order for a broker to recover a commission on an open listing, he must prove _______________
1) that he found a ready, willing and able buyer.
2) that he is duly licensed.
3) that he was the procuring cause.
4) All of the above
All of the above
A contract that results from neither a written nor oral agreement, but from the actions of the parties involved, is referred to as _______________
1) an “express” contract.
2) an “implied” contract.
3) an “executed” contract.
4) None of the above
an “implied” contract.
Where does a broker get the authority to accept an earnest money deposit?
1) The offer to purchase.
2) The listing agreement.
3) The land sales contract.
4) Escrow instructions.
The listing agreement.
When the “time is of the essence” clause is inserted in a contract to purchase real estate, _______________
1) both the buyer and the seller are prohibited from voluntarily extending the time limits set in the contract.
2) punctual performance of the terms is required of the buyer only.
3) punctual performance of the terms is required of the seller only.
4) punctual performance of the terms is required of the principals to the contract.
punctual performance of the terms is required of the principals to the contract.
To be legally enforceable an option or contract for the sale of real property must be all of the following EXCEPT?
1) In writing
2) State consideration
3) Signed by all parties
4) Initialed by a principal broker or attorney
Initialed by a principal broker or attorney
In a real estate sales transaction, the amount of the earnest money deposit is determined by _______________
1) the broker.
2) agreement of the parties.
3) a minimum of 5% of sale price.
4) the real estate license law.
agreement of the parties.
