N5 Purchase Contracts Flashcards
The Three purposes of a Purchase Agreement.
a.
b.
c.
a. Copy of the offeror’s offer
b. Legally binding contract upon acceptance
c. Escrow instructions
An invitation to enter a contract.
Offer
The parties to an offer are:
1.
2.
- Offeror
2. Offeree
When may the offeror withdraw the offer?
Anytime
__________ offers must be submitted to an offeree.
All
When licensees purchases or sells a property for themselves they must disclose their_____.
Licensed Status “Owner Agent”
An offer made by an offeree in response to the offer.
Counter Offer
Any change to any offer is considered to be a ___.
Counter Offer
When any change is made to an offer the original offer is:
Null & Void
Binding Contract
The acceptance of an offer and communication of that acceptance to the offer.
Once a purchase agreement becomes binding, the buyer is said to have:
Equitable Title
If a buyer or seller dies, an executory purchase agreement is said to be binding on the_____.
Heirs or Estate
Money given by the offeror to show good faith.
Earnest Money
Earnest money is usually held by the _____ broker.
Buyer’s
The amount of earnest money is:
Negotiable
In an Arizona Purchase agreement, the form of earnest money _____________.
must be stated in the agreement
In Arizona, a sales person must turn over earnest money to the broker ______.
immediately/promptly
In Arizona, unless otherwise agreed to __ _____ the broker must ______place earnest money in a _____ or __ _____.
in writing, immediately, trust, in escrow.
Comingling
Mixing Client’s funds with broker’s business funds.
The use of a client’s funds for the agent’s own use is:
Conversion
Any provision dictating that a contract is dependent on the happening of a certain event.
Contingency.
Mortgage Contingency
Any provision dictating that a contract is dependent on the obtaining financing.
The evidence of termite damage could be ____ or ____.
rotted wood or cellulose debris
Escrow
A neutral third party hired to close a transaction.
When there is conflict between any pre-printed wording and wording written into the contract, the _____ ______ prevails.
Written Word
An apportionment of funds between the parties for unpaid or pre-paid items such as taxes, insurance or interest.
Proration
The phrase that specifies the importance of completing terms of a contract on a timely basis.
“Time is of the Essence”
The evidence to a buyer that title is clear.
Title Insurance Policy
An amount that was pre-determined by the parties to be the total amount of compensation an injured party will receive if the other party breaches the contract is known as _______.
Liquidated Damages
Specific Performance
A court order given to enforce the provisions of a contract.
The risk of loss to a property prior to closing is born by the _____.
Seller
Caveat Emptor
Latin for Buyer Beware
An overstatement of personal opinion.
Puffing
A false statement of a material fact, which a party relies on to the party’s damage
Misrepresentation AKA Negligent Misrepresentation
Fraudulent Misrepresentation
When misrepresentation is intentional.
Real Estate Mal Practice Insurance
Errors & Omissions Insurance
The legal remedy of canceling a contract and returning the parties to their original positions prior to entering into the contract is _____.
Rescission
Indemnification Clause or Hold Harmless Clause
A contract provision in which one party agrees to protect another from damages or lawsuits.
