Quiz 11 Real Estate Contracts

Question 1

A listing agreement could be terminated by all of the following situations EXCEPT which?
A) The house burns down.
B) The owners cancel the listing in order to contract with the buyer and sell directly.
C) The broker renounces the agreement.
D) The seller revokes the agreement.

Answer 1

B) The owners cancel the listing in order to contract with the buyer and sell directly.

Question 2

If an offer to purchase real property has been presented to a seller but NOT accepted, the offer
A) may be withdrawn by the buyer at any time.
B) must remain open until the seller responds.
C) may be withdrawn, only with the seller’s permission.
D) binds the buyer until the offer has expired.

Answer 2

A) may be withdrawn by the buyer at any time.

Question 3

The primary purpose of a listing agreement is to
A) serve as a contract of employment between the seller and broker.
B) list all the improvements and amenities of the property.
C) serve as a guide for a sales contract.
D) serve as a contract between the buyer and the seller.

Answer 3

A) serve as a contract of employment between the seller and broker.

Question 4

The parties created a contract by stating terms for compliance. This is BEST described as
A) executed.
B) implied.
C) expressed.
D) executory.

Answer 4

C) expressed.

Question 5

When is a purchaser said to have “equitable title?”
A) At the signing of the sales contract by the buyer
B) At the time of closing
C) Between the time of delivery and acceptance (notification) of the contract and the actual closing
D) At the time of the offer

Answer 5

C) Between the time of delivery and acceptance (notification) of the contract and the actual closing

Equitable title is the interest a buyer has in a property between the time of acceptance (notification) of the contract and the actual closing. When the transaction closes, the buyer receives legal or actual title to the property.

Question 6

An arrangement in which brokers pool their listings, and all commissions are divided between the listing broker, and the selling broker is
A) an open listing.
B) a multiple listing.
C) an exclusive agency listing.
D) an exclusive right-to-sell.

Answer 6

B) a multiple listing.

Question 7

Which of the following disclosures are not required in a sales contract?
A) Lead-based paint
B) Radon gas
C) Utility costs
D) Building code violation

Answer 7

C) Utility costs

Question 8

The Parol Evidence Rule most closely means
A) anything in writing takes precedence over oral or verbal agreements.
B) telephone recordings may be used as evidence in court.
C) Persons on parole cannot enter into a contract.
D) Parol contracts cannot be enforced.

Answer 8

A) anything in writing takes precedence over oral or verbal agreements.

Question 9

There was an oral agreement for the sale of real estate. This contract would be
A) void and unenforceable.
B) valid and enforceable.
C) not valid because it did not meet Florida’s laws.
D) valid but unenforceable because of the Statute of Frauds.

Answer 9

D) valid but unenforceable because of the Statute of Frauds.

Question 10

An unscrupulous investor completes a contract with a buyer to sell a property the investor does not own. What is true about the sale contract for this transaction?
A) It is voidable.
B) It must be in writing.
C) It is void.
D) It is illegal yet potentially enforceable.

Answer 10

C) It is void.

Question 11

The failure to perform provisions of a contract without a legal excuse is known as
A) an option.
B) a breach.
C) a novation.
D) an assignment.

Answer 11

B) a breach.

Question 12

An Exclusive Right-to-Sell has been signed. What BEST describes the type and status of this contract?
A) Unilateral executory
B) Bilateral executory
C) Unilateral executive
D) Bilateral executive

Answer 12

B) Bilateral executory

Question 13

In order to be in compliance with the Statute of Frauds, a sales contract must be
A) in English.
B) in writing.
C) delivered.
D) recorded.

Answer 13

B) in writing.

Question 14

The term “procuring cause” refers to
A) the sales associate who first showed the property to the buyer.
B) a “single agent” for the buyer only.
C) the party who put the sale into effect.
D) the first person to turn the contract in to the seller.

Answer 14

C) the party who put the sale into effect.

Question 15

When is a contract terminated?
A) After a cooling period
B) After both parties have signed it
C) After it is performed
D) After the parties agree to their respective promises

Answer 15

C) After it is performed

Question 16

What is an important legal feature of a contract?
A) It represents a “meeting of the minds.”
B) It must use precise wording in a document.
C) It is not voidable.
D) It can be created only by an attorney.

Answer 16

A) It represents a “meeting of the minds.”

Question 17

A listing that allows the owner to sell the property himself without being liable for a commission but which appoints only one broker to act as his sole agent is a(an)
A) sole listing.
B) open listing.
C) exclusive right-to-sell.
D) exclusive agency.

Answer 17

D) exclusive agency.

Question 18

Which would be the best description of “culpable negligence?”
A) When the sales associate knew or should have known of a defect
B) When the sales associate is negligent in the care of his customer
C) When the sales associate makes a statement that he knows is false
D) When the broker doesn’t watch his sales associates when they perform their duties.

Answer 18

A) When the sales associate knew or should have known of a defect