Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

AZ Real Estate Agent License 2020 > Purchase Contracts 5 > Flashcards

Purchase Contracts 5 Flashcards

1
Q

Expresses the Parties Intention to Invest in Buy or Develop a Property Withtout Creating a Binding Legal Obligations to do so.

A

Letter of Intent -

Expresses the Parties Intention to Invest in Buy or Develop a Property Withtout Creating a Binding Legal Obligations to do so.

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What agreements are assignable?

A

Purchase Agreements and Leases -

Assignable

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Assignor is the Person that Assigns Transfer of Rights, and the Assignee is the Person that Gets Rights Transfered to. Who has 1st and 2nd Liability in the Transfer of Rights?

Deals with Purchase Contracts and Leases, unless prohibited.

A

During the Assignment of Contract Rights -

  1. Assignor (Assigning Rights) - 1st Liability
  2. Assignee (Rights Transfered To) - 2nd Liability

Deals with Purchase Contracts and Leases, unless prohibited.

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Conv____ of F_____

Agent uses Trust Funds for His/Her Own Use

A

Conversion of Funds - Own Use

Agent Uses Trust Funds for Own Use

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Resc_____ of Contract -

  1. Mutual Agreement to Cancel,
  2. Restoring Parties - Original Positions.
  3. Broker must follow Buyer and Seller’s Instructions
A

Rescission of Contract -

  1. Mutual Agreement to Cancel,
  2. Restoring Parties - Original Positions.
  3. Broker must follow Buyer and Seller’s Instructions

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Clause that Allows Party to Withdraw. Contingent Upon a Certain Condition/Event. Voids Contract.

A

Contingency Clause -

Clause that Allows party to Withdraw. Contingent Upon a Certain Condition/Event. Voids Contract.

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

N___ H___ Sales Contacts

Contracts where Earnest Money** is **Not Held in Escrow but in Business Account

A

New Home Sales Contracts -

Contracts where Earnest Money** is **Not** **Held in Escrow but in Business Account

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

M_____ C_______ C_____

Clause where Contingency is Based On Buyer Obtaining Financing**. **Specifies:

  1. Amount,
  2. Interest Rate
  3. Terms,
  4. Commitment Date
A

Mortgage Contingency Clause -

Clause Contingency Based On** Buyer Obtaining **Financing.Specifies:

  1. Amount,
  2. Interest Rate,
  3. Terms,
  4. Commitment Date

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Rotted Wood and Cellulose Debris is part of what inspection?

A

Termite Inspection -

Rotted Wood and Cellulose fall under this type of inspection.

Pest Control is Licensed by: AZ Dept of Agriculture

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Clause where Contingency is Based On Buyer obtaining Financing. Specifies:

  1. Amount,
  2. Interest Rate,
  3. Terms,
  4. Commitment Date
A

Mortgage Contingency Clause -

Clause Contingency Based On Buyer obtaining Financing. Specifies:

  1. Amount,
  2. Interest Rate,
  3. Terms,
  4. Commitment Date

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Termite Inspectors are License by whom?

A

AZ Dept of Agriculture -

Licensing for Termite Inspectors

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

AZ State Board of Te______ Regis_______

Home Inspectors are Licensed by whom?

A

AZ State Board of Technical Registration -

Licensing for Home Inspectors

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Pre-printed Words are these. And the Written Word Always Prevails.

A

Boiler Plate -

Pre-Printed Words are these. And the Hand Written Word Always Prevails.

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Cl___ of Es____

Typically Occurs when Deeds are Recorded

A

Close of Escrow -

Typically Occurs when Deed Recorded

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Person or Entity Other Than the Policy Holder who is Covered by Policy

A

Additional Insured -

Person or Entity Other Than the Policy Holder who is Covered by Policy

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

If Buyer Defaults - Seller May:

  1. Allow W______
  2. Retain Earnest Money as L______ Damages
  3. Sue for Damages “Sp_____ P_____“ in Court.

…

A

If Buyer Defaults - Seller May:

  1. Allow Withdraw,
  2. Retain Earnest Money as Liquidated Damages
  3. Sue for Damages “Specific Performance” in Court.

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

If Seller Defaults - Buyer May:

  1. Allow W_______,
  2. Sue for Damages “Sp_____ P_______” in Court
A

If Seller Defaults - Buyer May:

  1. Allow Withdrawal,
  2. Sue for Damages “Specific Performance” in Court

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Cav___ Em___

Latin Term for Obvious Defects - Buyer is responsible, which means Buyer Beware Of.

A

Caveat Emptor -

Latin Term for Obvious Defects - Buyer is responsible, which means Buyer Beware Of

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Dispute Resolution “Process” to help Resolve Differences, Conducted by a 3rd Party.

A

Mediation -

Dispute Resolution “Process” to help Resolve Differences, Conducted by a 3rd Party.

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Non-Judicial Submission to a Third Party, where Both Parties Agree to Comply with Final Decision by 3rd Party as Binding

A

Arbitration -

Non-Judicial Submission to a Third Party, where Both Parties Agree to Comply with Final Decision by 3rd Party as Binding

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

In these Type of Offers, Seller Can Reserve the Right to Counter Multiple Offers and Accept Any He Receives from Buyer.

A

Multiple Offers/Counter Offers -

In these Type of Offers, Seller Can Reserve the Right to Counter Multiple Offers and Accept Any He Receives from Buyer.

Chap 5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

If a Buyer Makes Multiple Offers on Different Properties, what must he do?

A

Buyers Multiple Offers:

Buyer must Disclose in Each Offer, that He is Making Multiple Offers.

Chap 5

23
Q

After Written Acceptance of an Offer, what Type of Title does Buyer Have?

A

Equitable Title -

After Written Acceptance of Offer, Buyer has this Type of Title, and Contract is Exectory.

Chap 5

24
Q

Indemni______ C______

Hold Harmless Clause. One Party Protects Another Party from Damage.

A

Indemnification Clause -

Hold Harmless Clause. One Party Protects Another Party from Damage.

Chap 5

25
Q

An Invitation to Enter Into a Contract

A

Offer -

An Invitation to Enter Into a Contract

Chap 5

26
Q

The Buyer who Makes the Offer is called?

A

Offeror -

Person Who Makes the Offer

Chap 5

27
Q

An Offer Made by the Offeree to the Offeror, which Modifies the Offeror’s Original Offer

A

Counter Offer -

An Offer Made by the Offeree to the Offeror, which Modifies the Offeror’s Original Offer.

Chap 5

28
Q

Term used a Purchase Contract or Lease to indicate that the Buyer/Lessee may Name Another Person or Entity Who Will Complete the Transaction.

A

Nominee -

Term used a Purchase Contract or Lease to indicate that the Buyer/Lessee may Name Another Person or Entity Who Will Complete the Transaction.

Chap 5

29
Q

Buyer’s Money Given to Show Good Faith to Seller to Complete the Transaction.

As a check, cash, or note

A

Earnest Money -

Buyer’s Money Given to Show Good Faith to Seller to Complete the Transaction.

As a check, cash or note

Chap 5

30
Q

Tr_____ Ac_____

Any Type of Financial Account (Federally Insured} that is Opened by an Individual and Managed by a Designated Trustee for the Benefit of a Third Party (the Beneficiary) as Per Agreed-Upon Terms

Brokers In AZ Not Required to Maintain Trust Account unles Engaged In Propety Management (Chap 15)

A

Trust Account -

Any Type of Financial Account (Federally Insured} that is Opened by an Individual and Managed by a Designated Trustee for the Benefit of a Third Party (the Beneficiary) as Per Agreed-Upon Terms

Brokers In AZ Not Required to Maintain Trust Account unles Engaged In Propety Management (Chap 15)

Chap 5

31
Q

Legal Arrangement in which a Third Party Temporarily holds Large Sums “Money or Property** **Until Particular Conditions has been met (e.g., Purchase Agreement Fullfilment).

A

Escrow -

Legal Arrangement in which a Third Party Temporarily holds Large Sums “Money or Property“ Until Particular Conditions has been met (e.g., Purchase Agreement Fullfilment).

Chap 5

32
Q

Disinterested Nuetral Third Party Hired to Close the Transaction

A

Escrow Agent -

Disinterested Nuetral Third Party Hired to Close the Transaction.

Chap 5

33
Q

Mixing of Client’s Funds with Broker’s Business/Personal Accounts

A

Commingling -

Mixing of Client’s Funds with Broker’s Business/Personal Accounts.

Chap 5

34
Q

Simultaneous Escrows on Same Property, where Buyer has Sold Property Prior to Escrow Closing, Uses Some of Proceeds From that Sale to Fund Another Purchase.

A

Double Escrow -

Simultaneous Escrows on Same Property, where Buyer has Sold Property Prior to Escrow Closing, Uses Some of Proceeds From that Sale to Fund Another Purchase.

Chap 5

35
Q

Specifies What Items will be Split and The Date of Such Spilts (usually Close of Escrow).

A

Prorations -

Specifies What Items will be Split and The Date of Such Spilts (usually Close of Escrow).

Chap 5

36
Q

L___ P____

Person Designated in Insurance Policy To Be Paid, If Property is Damaged or Destroyed.

(ex: Morgage Lender)

A

Loss Payee -

Person Designated in Insurance Policy To Be Paid, If Property is Damaged or Destroyed.

(ex: Morgage Lender)

Chap 5

37
Q

Cla___ H_____ and Cl___ Report

A Record of Insurance Losses on a Property or Specific Consumer is called?

(Answer has 2 names)

A

Claims History / Clue Report -

A Record of Losses On a Property or Specific Consumer.

Chap 5

38
Q

Service Contract Covering the Repairs or Replacement of Appliances/Systems, Such as Furnaces, Air Conditioners, Plumbing, Roof, etc.

A

Home Warranty -

Service Contract Covering the Repairs or Replacement of Appliances/Systems, Such as Furnaces, Air Conditioners, Plumbing, Roof, etc.

Chap 5

39
Q

Amount Pre-Determined By the Parties as Total Amount of Compensation an Injured Party Should Receive - For Breach of Contract.

A

Liquidated Damages -

Amount Pre-Determined By the Parties as Total Amount of Compensation an Injured Party Should Receive - For Breach of Contract.

Chap 5

40
Q

Sp_______ P________

Court Order to Enforce Terms of a Contract is Called?

A

Specific Performance -

Court Order to Enforce Terms of a Contract

Chap 5

41
Q

Making Over-Statements of Personal Opinion, is not considered misrepresentation.

A

Puffing -

Making Over-Statements of Personal Opinion, is not considered misrepresentation.

Chap 5

42
Q

False Statements of Material Facts Which a Party Relies on to His Damage.

A

Misrepresentation -

False Statements of Material Facts Which a Party Relies on to His Damage.

Chap 5

43
Q

Occurs When Person Intentionally Misrepresents a Fact.

A

Fraudulent Misrepresentation -

Occurs When Person Intentionally Misrepresents a Fact.

Chap 5

44
Q

Id_____ Th____

Using Another Person’s Personal Info for Illegal Purposes.

Real Estate Agents must Safeguard Clients’ and Consumers’ Information.

A

Identity Theft -

Using Another Person’s Personal Info for Illegal Purposes.

Real Estate Agents must Safeguard Clients’ and Consumers’ Information.

Chap 5

45
Q

Occurs When Hacker Intercepts Email and Sends Fraudulent Wiring Instructions Directing Client’s Money to Hacker’s Account

A

Wire Fraud -

Occurs When Hacker Intercepts Email and Sends Fraudulent Wiring Instructions Directing Client’s Money to Hacker’s Account

Chap 5

46
Q

The Amount of the Earnest Money is determined by the:

  1. Buyer
  2. Seller
  3. Buyer and Seller
  4. Broker
A

The Amount of the Earnest Money is determined by the:

  1. Buyer
  2. Seller
  3. Buyer and Seller
  4. Broker

Chap 5

47
Q

While making a Listing Presentation to a Seller, a Licensee is also considering Purchasing the Property. In this situation does the Agent need to Disclose their Intentions to Buy to Seller and why?

  1. No, beause there is No Need to Discuss Personal Issues.
  2. No, because the Licensee is Not Yet the Seller’s Agent
  3. Yes, because it May Have an Impact on the Owner’s Decision to List with the Agent
  4. Yes, because it is Required by the Statute of Frauds.
A

While making a listing presentation to a seller, a licensee is also considering purchasing the property. In this situation does the agent neeed to disclose their intentions to the seller and why?

  1. No, beause there is No Need to Discuss Personal Issues.
  2. No, because the Licensee is Not Yet the Seller’s Agent
  3. Yes, because it May Have an Impact on the Owner’s Decision to List with the Agent
  4. Yes, because it is Required by the Statute of Frauds.

Chap 5

48
Q

Buyer Makes an Offer to Purchase a Home Listed by a Broker, but the Seller is Not Available until Wednesday. On Tuesday Buyer Wishes to Withdraw the Offer. Which of the following statements iis correct?

  1. Buyer cannot do this as he has signed contract
  2. Buyer must forfeit the Earnest Money
  3. The Broker must Return the Deposit and Offer
  4. The Broker should tell Buyer the Offer is Accepted.
A

Buyer Makes an Offer to Purchase a Home Listed by a Broker, but the Seller is Not Available until Wednesday. On Tuesday Buyer Wishes to Withdraw the Offer. Which of the following statements iis correct?

  1. Buyer cannot do this as he has signed contract
  2. Buyer must forfeit the Earnest Money
  3. The Broker must Return the Deposit and Offer
  4. The Broker should tell Buyer the Offer is Accepted.

Chap 5

49
Q

An Escrow once established, is subject to Recission by:

  1. The Broker
  2. Only the Seller
  3. Onlly the Buyer
  4. An Agreement between Buyer and Seller
A

An Escrow once established, is subject to Recission by:

  1. The Broker
  2. Only the Seller
  3. Onlly the Buyer
  4. An Agreement between Buyer and Seller

Chap 5

50
Q

A Property was listed for $45,000. Broker brings a Buyer who offers $44,000. The seller then counters with $44,500 but the counter offer is NOT accepted by the Buyer. Later the Seller decides to accept the $44,000 offer. Which of the following statements is correct?

  1. Broker is Entitled to Commission
  2. There is a Contract in Effect for $44,500
  3. There is a Contract in Effect for $44,000
  4. There is No Contract In Effect
A

A Property was listed for $45,000. Broker brings a Buyer who offers $44,000. The seller then counters with $44,500 but the counter offer is NOT accepted by the Buyer. Later the Seller decides to accept the $44,000 offer. Which of the following statements is correct?

  1. Broker is Entitled to Commission
  2. There is a Contract in Effect for $44,500
  3. There is a Contract in Effect for $44,000
  4. There is No Contract In Effect

Note: In Real LIfe the Original Offer for $44,000 could still be accepted (Answer C)

Chap 5

51
Q

An Offer to Purchase is An:

  1. Unilateral Contract
  2. Expression of Intent to Enter a Contract
  3. Bilateral Contract to Purchase
  4. Binding On the Offeror
A

An Offer to Purchase is An:

  1. Unilateral Contract
  2. Expression of Intent to Enter a Contract
  3. Bilateral Contract to Purchase
  4. Binding On the Offeror

Chap 5

52
Q

Earnest Money is normally held by:

  1. By Listing Agent’s Broker
  2. By Buyer’s Agent’s Broker
  3. Only in Broker’s Trust Account
  4. By The Seller
A

Earnest Money is normally held by:

  1. By Listing Agent’s Broker
  2. By Buyer’s Agent’s Broker
  3. Only in Broker’s Trust Account
  4. By The Seller

Chap 5

Note: It actually goes to Escrow(Title)

53
Q

When a Buyer’s Interest in a Purchase Contract is Assigned to a Third Party, the Seller’s Permission:

  1. Is Always Required
  2. Is Never Required
  3. Must be Obtained At time of Listing the Property
  4. May be Required
A

When a Buyer’s Interest in a Purchase Contract is Assigned to a Third Party, the Seller’s Permission:

  1. Is Always Required
  2. Is Never Required
  3. Must be Obtained At time of Listing the Property
  4. May be Required

Chap 5

Note: Contract May Prohibit

AZ Real Estate Agent License 2020 (23 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions