Module 2 - Contracts. MULTIPLE CHOICE Flashcards
The amount of earnest money deposited is determined by:
A) The principal broker
B) Agreement between buyer and seller
C) The broker
D) By law as a minimum of 5 percent of sale price
B) Agreement between buyer and seller
In OR, a married female under 18
1) Is considered a minor, any contact she enters into is voidable
2) can disaffirm any contract entered into, until a reasonable time after reaching the age of majority
Both
1 only
2 only
Neither
NEITHER! Married = can enter into contracts…. regardless of being 18, the min age is 17
When a broker takes a listing to sell real property, the listing belongs to
A) The Broker only
B) The principal broker only
C) The broker and the principal broker
D) Neither until a sale is made
B) The principal broker
The broker is an agent of the broker. The listing agent is a contract between the seller and the PRINCIPAL BROKER
Which is true?
1) A minors contract to sell land is valid until they disaffirm a contract
2) An Illiterate person is bound by a written contract.
Both
1 only
2 only
Neither
Neither. A contract to sell land is not a contract for necessities to be voided by the minor. An illiterate person can be bound by a written contract so long as someone reads it o them and they sign with a mark denoting they understand it.
When the parties to a contract have fully performed the terms, the contract is properly described as
A) Acknowledged
B) Executed
C) Secured
D) Expressed
B) Executed
An executory contract is always a
A) Contract with an executor of an estate
B) Written contract that cannot be altered by an oral agreement
C) Contract that has not been performed yet
D) Contract that has been fully performed
C) Contract that has not been performed yet.
(an EXECUTORY contract is not performed, a EXECUTED contract is fully performed)
A buyer signs a real estate sale agreement and gives it to the broker who showed them the property. After leaving the broker’s office, the buyer reconsiders and decides on a different property. How long does the buyer have to rescind their offer?
A) Until the earnest money deposit check is cashed.
B) Until the seller communicates acceptance of the offer back to the buyer.
C) Until it is signed by the seller regardless of whether the acceptance is communicated to the buyer.
D) The offer cannot be rescinded once it is signed by the buyer.
B) Until the seller communicates acceptance of the offer back to the buyer
A multiple listing authorization gives a broker what authority?
A) To sell several properties for the owner at once.
B) To list the owner’s property in a multiple listing service.
C) To delegate the listing responsibilities to other agents.
D) To represent both seller and buyer, if necessary, in selling the property.
B) To list the owners property in a multiple listing service
A multiple listing is not a distinct listing contract but rather a provision in an exclusive listing authorizing the broker to place the listing into a multiple listing service. A multiple listing service is an organization of member brokers who agree to cooperate in the sale of properties listed by other brokers in exchange for a share of the broker’s resulting commission.
A contract can be voided if it was signed under
A) duress.
B) a threat of force.
C) undue influence.
D) Any of the above.
D) Any of the above
Which of the following is not essential to a valid contract?
A) Offer and acceptance
B) A lawful object
C) Competent parties
D) Monetary consideration
Monetary
