Module 2 Flashcards
which does not hold a leasehold estate
Life tenant
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
liquited damages
In a sale-leaseback agreement,
the grantor becomes the lessee
Which of the following is essential for any contract?
Consideration– means, how much? what’s the price
A bank that insists on a $20,000 down payment to purchase a $100,000 home
requires
an 80% loan-to-value ratio
Which of the following is a listing whose consideration is not based on a
percentage of the selling price?
A net listing (it’s illegal)
Options and “first refusals”
place an obligation only on the optionor
Regulation of non-marine waters and certain activities in designated wetlands areas
in New Jersey is the responsibility of:
Environmental Protection Agency
Department of Environmental Protection
Department of Homeland Security
The county in which the property is located
If the owners of a property sell it themselves, even though they have an exclusive
agency listing with a broker, they owe the broker:
the full commission
one-half the commission
a commission that must be settled through arbitration
no commission
Compliance with the Lead Based Paint Hazard Reduction Act is important to real estate agents because its regulations specifically require real estate agents
to ensure compliance
Contracts can be either bilateral or unilateral. Which of the following is a unilateral contract?
a reward.
a voidable contract.
an executory contract.
a partially performed contract.
Regulation Z requires the disclosure of which of the following?
APR
type of listing which is not permitted for use in New Jersey is the:
Net listing
A contract that has been fully performed by the parties is called a(an)
executory contract
voidable contract
executed contract
consolidated contract
What are the four essential elements of a valid contract?
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
When a purchaser buys subject to an existing mortgage,
the purchaser is not personally liable for the note or bond
The lease that requires no advance notification to terminate it at the end of its term is called
a periodic estate
a month to month lease
an estate for years
a year to year lease
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?
5 days
Land contracts are a means of
leasing
subdividing
seller financing
purchasing vacant lots
If Barbara is legally occupying and using a single family structure, her
interest in real estate could not include which of the following?
Leasehold estate
Life estate
Tenancy at sufferance
Fee simple estate
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
rescission
revocation
novation
an nullification
Which of the following most accurately describes a property manager?
Trustee
Escrow agent
Client
Fiduciary
Any real estate sale contract is not valid if
it does not contain an adequate description of the property
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
an exclusive agency listing
an open listing
an exclusive right to sell listing
a multiple listing
A contract between an adult and a minor is
voidable
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
unilateral contract
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?
Liberal terms available
Liquidation of a loan in equal installments that includes principal and interest is called
redemption
compounding
amortization
straight reduction
An amount of money that will serve as compensation if one party to a contract does not live up to the contract is called
liquidated damages
Which of the following statements about the assignment of contracts is
not true?
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
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?
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
The truth-in-renting act does not apply to.
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
Special contingency clauses providing that the contract may be voided if the property appraises below the sale price must be part of contracts for
home financed by FHA and VA loans
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?
$5,100
$5,500
$6,125
$6,375
A loan used for temporary financing is a
Bridge loan
FHA 203b loan
VA loan
Installment sales contract
Something of value offered by one party and accepted by another as inducement
to perform is called
acknowledgement
boot.
conveyance
consideration
When a lease provides that the lessee shall be responsible for all expenses, it is
known as
a net lease
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?
Commission rate or amount
something of value offered to other party
consideration
release of hazardous substance on property is placed responsibility on
place on landowner
federal government requires disclosure of known…
lead
what does fee simple absolute estate signifiy?
complete ownership with the rights to use property forever
what type of deed provides greatest protection to the buyer?
Warranty Deed:
Grantor—) gives
Grantee—) takes
right of growing crows on leased land…
emblements
