Real Estate Practice: Q 12/Chp 52-55

Question 1

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

Answer 1

True (pg 540)

Question 2

2) Under EP (equity purchase) laws, _______________ are business days.
a. Saturdays
b. most state holidays
c. Both a and b.
d. Neither a nor b.

Answer 2

c. Both a and b (pg 541)

Question 3

3) If a buyer’s agent fails to deliver an EP (equity purchase) disclosure to the seller, the EP agreement is:
a. void.
b. voidable by the seller-in-foreclosure.
c. voidable by the buyer.
d. None of the above

Answer 3

b. voidable by the seller-in-foreclosure (pg 542)

Question 4

4) A seller-in-foreclosure may recover their property within ________ after the close of escrow if the EP (equity purchase) investor took unconscionable advantage of them.
a. six months
b. one year
c. two years
d. three years

Answer 4

c. two years (pg 545)

Question 5

5) Both the lack of meaningful choice and terms unreasonably favorable to the EP (equity purchase) investor need to exist to show unconscionability.
True
False

Answer 5

True (pg 547)

Question 6

6) To analyze an income property, a buyer’s agent may ask the seller’s agent for:
a. information regarding maintenance procedures.
b. a rent roll spread sheet.
c. an occupancy history.
d. All of the above.

Answer 6

d. All of the above (pg 550)

Question 7

7) _______________ is considered cash boot.
a. A carryback promissory note
b. Personal property
c. Both a and b.
d. Neither a nor b.

Answer 7

c. Both a and b (pg 570)

Question 8

8) In an option agreement, a prospective buyer is referred to as:
a. an optionor.
b. an optionee.
c. offeror.
d. offeree.

Answer 8

b. an optionee (pg 577)

Question 9

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

Answer 9

True (pg 581)

Question 10

10) A particular manner for exercising an option needs to be specified in an option agreement.
True
False

Answer 10

False (pg 583)