Real Estate Practice: Q 11/Chp 48-51

Question 1

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.
True
False

Answer 1

True (pg 493)

Question 2

2) ______________ are a transactional expense a seller may recover on a buyer’s breach.
a. Escrow charges
b. Payoff demands
c. Both a and b.
d. Neither a nor b.

Answer 2

c. Both a and b (pg 493)

Question 3

3) Recoverable losses are limited to those a seller incurs from the date of a buyer’s breach until:
a. the date a resale closes.
b. the date of the withdrawal of the property from the market.
c. the later of the two dates above.
d. the earlier of the two dates above.

Answer 3

d. the earlier of the two dates above (pg 495)

Question 4

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.
True
False

Answer 4

True (pg 502)

Question 5

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

Answer 5

False (pg 504)

Question 6

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

Answer 6

True (pg 505)

Question 7

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.
True
False

Answer 7

True (pg 511)

Question 8

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:
a. the arbitrator exceeded their authorized powers.
b. the arbitrator acted with fraud or corruption.
c. Either a or b.
d. Neither a nor b.

Answer 8

c. Either a or b (pg 511)

Question 9

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.
True
False

Answer 9

True (pg 513)

Question 10

10) Addenda which may be attached to a purchase agreement include:
a. property disclosures.
b. agency relationship disclosures.
c. financing disclosures.
d. All of the above.

Answer 10

d. All of the above (pg 521)