Practice Quizzes 4

Question 1

If a breaching buyer records a Notice of Lis Pendens, the seller can recover any decline in the property’s value after the date of the breach until the buyer stops interfering with resale efforts.

Answer 1

True

Question 2

______________ are a transactional expense a seller may recover on a buyer’s breach

Answer 2

Escrow charges.

Payoff demands

Question 3

Recoverable losses are limited to those a seller incurs from the date of a buyer’s breach until:

Answer 3

the earlier of the two dates above.

Question 4

For a seller to keep the entire deposit on the buyer’s breach, the seller needs to provide an accounting showing their losses equaled or exceeded the amount of the deposit.

Answer 4

True

Question 5

Without a liquidated damages provision, a seller is not entitled to recover their money losses caused by a buyer’s breach.

Answer 5

False

Question 6

A liquidated damages provision is voidable if the amount is not reasonably close to actual losses.

Answer 6

True

Question 7

An arbitrator’s award is binding and final, regardless of any defect resulting from an error of fact or law, unless the arbitration provision provided for judicial review.

Answer 7

True

Question 8

Any defect in the arbitrator’s award resulting from an error of fact or law, no matter how flagrant, is neither reviewable nor correctable, unless:

Answer 8

the arbitrator exceeded their authorized powers.

the arbitrator acted with fraud or corruption

Question 9

Even if an arbitrator bases their decision on an incorrect interpretation of the facts or the law, neither party has recourse to change the erroneous decision.

Answer 9

True

Question 10

Addenda which may be attached to a purchase agreement include:

Answer 10

property disclosures..
agency relationship disclosures.
financing disclosures

Question 11

An equity purchase (EP) agreement needs to be in the same language used to negotiate with the seller.

Answer 11

True

Question 12

Under EP laws, _______________ are business days.

Answer 12

Saturdays.

most state holidays

Question 13

If a buyer’s agent fails to deliver an EP disclosure to the seller, the EP agreement is:

Answer 13

voidable by the seller-in-foreclosure.

Question 14

A seller-in-foreclosure may recover their property within ________ after the close of escrow if the EP investor took unconscionable advantage of them.

Answer 14

two years

Question 15

Both the lack of meaningful choice and terms unreasonably favorable to the EP investor need to exist to show unconscionability.

Answer 15

True

Question 16

To analyze an income property, a buyer’s agent may ask the seller’s agent for:

Answer 16

information regarding maintenance procedures..
a rent roll spread sheet.
an occupancy history

Question 17

_______________ is considered cash boot.

Answer 17

A carryback promissory note.

Personal property

Question 18

In an option agreement, a prospective buyer is referred to as:

Answer 18

an optionee

Question 19

Without consideration, an option is merely an offer to sell which the seller may withdraw.

Answer 19

True

Question 20

A particular manner for exercising an option needs to be specified in an option agreement.

Answer 20

False

Question 21

A joint tenancy is legally called a severalty ownership.

Answer 21

False

Question 22

Both spouses or domestic partners need to consent to the lease for more than one year of community property vested as joint tenants.

Answer 22

True

Question 23

When the co-ownership of property is vested as tenants in common, the death of a coowner automatically extinguishes the deceased co-owner’s interest in the property.

Answer 23

False

Question 24

A preliminary title report is:

Answer 24

an offer to issue a title policy.

Question 25

Encumbrances on title include:

Answer 25

covenants, conditions and restrictions..
easements..
assessments and bonds

Question 26

Losses due to eminent domain are excluded from all title insurance coverage.

Answer 26

True

Question 27

Which title insurance policy provides the most coverage?

Answer 27

ALTA homeowner’s

Question 28

Licensed real estate brokers who represent sellers in real estate transactions where the broker will act as escrow are exempt from escrow licensing requirements.

Answer 28

True

Question 29

Escrow officers are required to notify a buyer and seller of any suspicious fact or circumstance when it affects escrows ability to close.

Answer 29

True

Question 30

Escrow has a duty to advise a buyer in writing of the Franchise Tax Board (FTB) requirements for withholding ______ of the price paid the seller.

Answer 30

3 1/3 %