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Real Esate > Module 2 > Flashcards

Module 2 Flashcards

1
Q

which does not hold a leasehold estate

A

Life tenant

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2
Q

The purchaser in a real estate sales contract breaches the contract and does not go through with the purchase. The contract stipulates that the seller may keep the earnest money. This is known as

A

liquited damages

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3
Q

In a sale-leaseback agreement,

A

the grantor becomes the lessee

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4
Q

Which of the following is essential for any contract?

A

Consideration– means, how much? what’s the price

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5
Q

A bank that insists on a $20,000 down payment to purchase a $100,000 home
requires

A

an 80% loan-to-value ratio

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6
Q

Which of the following is a listing whose consideration is not based on a
percentage of the selling price?

A

A net listing (it’s illegal)

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7
Q

Options and “first refusals”

A

place an obligation only on the optionor

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8
Q

Regulation of non-marine waters and certain activities in designated wetlands areas
in New Jersey is the responsibility of:

A

Environmental Protection Agency
Department of Environmental Protection
Department of Homeland Security
The county in which the property is located

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9
Q

If the owners of a property sell it themselves, even though they have an exclusive
agency listing with a broker, they owe the broker:

A

the full commission
one-half the commission
a commission that must be settled through arbitration
no commission

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10
Q

Compliance with the Lead Based Paint Hazard Reduction Act is important to real estate agents because its regulations specifically require real estate agents

A

to ensure compliance

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11
Q

Contracts can be either bilateral or unilateral. Which of the following is a unilateral contract?

A

a reward.
a voidable contract.
an executory contract.
a partially performed contract.

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12
Q

Regulation Z requires the disclosure of which of the following?

A

APR

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13
Q

type of listing which is not permitted for use in New Jersey is the:

A

Net listing

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14
Q

A contract that has been fully performed by the parties is called a(an)

A

executory contract
voidable contract
executed contract
consolidated contract

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15
Q

What are the four essential elements of a valid contract?

A

competent parties, offer and acceptance consideration, warranty, and written expression
competent parties, offer and acceptance, consideration, and legality of object
offer and acceptance, consideration, written expression, and warranty
offer and acceptance, competent parties, consideration, and notice

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16
Q

When a purchaser buys subject to an existing mortgage,

A

the purchaser is not personally liable for the note or bond

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17
Q

The lease that requires no advance notification to terminate it at the end of its term is called

A

a periodic estate
a month to month lease
an estate for years
a year to year lease

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18
Q

In order to convert an oral agreement for the sale of a property into a written listing, the broker must deliver a written memorandum of the agreement to the client within how many days?

A

5 days

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19
Q

Land contracts are a means of

A

leasing
subdividing
seller financing
purchasing vacant lots

20
Q

If Barbara is legally occupying and using a single family structure, her
interest in real estate could not include which of the following?

A

Leasehold estate
Life estate
Tenancy at sufferance
Fee simple estate

21
Q

The procedure by which a party to a contract is fully discharged of all
responsibility and another party takes his or her place with agreement by both
parties is known as

A

rescission
revocation
novation
an nullification

22
Q

Which of the following most accurately describes a property manager?

A

Trustee
Escrow agent
Client
Fiduciary

23
Q

Any real estate sale contract is not valid if

A

it does not contain an adequate description of the property

24
Q

A listing contract in which the listing broker’s commission is based upon
procuring a buyer before the property is sold by the owner or another broker is

A

an exclusive agency listing
an open listing
an exclusive right to sell listing
a multiple listing

25
Q

A contract between an adult and a minor is

A

voidable

25
Q

A broker agreed to pay a bonus to all associates who sold four homes in a calendar month. Alex sold four homes last month and received the bonus. This is an example of a

A

unilateral contract

25
Q

In a real estate advertisement that includes information on mortgage financing, which of the following is permissible under the truth-in-lending law, without the necessity to add qualifying words?

A

Liberal terms available

26
Q

Liquidation of a loan in equal installments that includes principal and interest is called

A

redemption
compounding
amortization
straight reduction

27
Q

An amount of money that will serve as compensation if one party to a contract does not live up to the contract is called

A

liquidated damages

28
Q

Which of the following statements about the assignment of contracts is
not true?

A

Novation is the substituting of a new party and the releasing of the old party of all responsibility
An assignment must be in writing
In an assignment, the assignor is released of all liability
Novation also means the replacing of an existing contract with a new contract between the same or different parties

29
Q

Broker Smith has a house listed for $100,000. His daughter sees it and decides she wants to purchase it. The broker convinces the seller to accept an offer of $80,000 from her but doesn’t reveal to the seller his relationship to the purchaser. If the seller discovers this relationship, which of the following statements is true?

A

The contract for the sale of the house is void
The contract for the sale of the house is voidable
The broker is entitled to a commission because he is the procuring cause of the sale
The daughter is obligated to pay the $100,000 listing price

30
Q

The truth-in-renting act does not apply to.

A

apartment buildings with more than 25 units
apartment buildings with less than 10 units
owner-occupied properties with 5 rental units or less
properties with fewer than 3 rental units

31
Q

Special contingency clauses providing that the contract may be voided if the property appraises below the sale price must be part of contracts for

A

home financed by FHA and VA loans

32
Q

A buyer has deposited 10 percent of the sales price with the broker as earnest money,
and the bank has agreed to lend $51,000, which is 80 percent of the sales price. How
much additional funding must the buyer provide to complete this transaction?

A

$5,100
$5,500
$6,125
$6,375

33
Q

A loan used for temporary financing is a

A

Bridge loan
FHA 203b loan
VA loan
Installment sales contract

34
Q

Something of value offered by one party and accepted by another as inducement
to perform is called

A

acknowledgement
boot.
conveyance
consideration

35
Q

When a lease provides that the lessee shall be responsible for all expenses, it is
known as

A

a net lease

36
Q

Joe Salesperson had an open listing agreement signed by the seller of real
property. Joe went back to his office and felt he left something important out
on the agreement form. What would have had to be left out in order for the
agreement not to be enforceable?

A

Commission rate or amount

37
Q

something of value offered to other party

A

consideration

38
Q

release of hazardous substance on property is placed responsibility on

A

place on landowner

39
Q

federal government requires disclosure of known…

A

lead

40
Q

what does fee simple absolute estate signifiy?

A

complete ownership with the rights to use property forever

41
Q

what type of deed provides greatest protection to the buyer?

A

Warranty Deed:
Grantor—) gives
Grantee—) takes

42
Q

right of growing crows on leased land…

A

emblements

43
Q
A

Real Esate (7 decks)

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