Real Estate Practice: Q 8/Chp 36-40

Question 1

1) The use of a _______________ requires a written carryback disclosure form on one-to four unit residential property when the seller will partially finance the sale.
a. land sales contract
b. lease-option
c. an unexecuted purchase agreement with interim occupancy
d. All of the above.

Answer 1

d. All of the above (pg 342)

Question 2

2) A carryback seller is concerned with:
a. receiving no more than the fair market value (FMV) of the property.
b. their loan-to-value (LTV) ratio of the purchase price.
c. Both a and b.
d. Neither a nor b.

Answer 2

b. their loan-to-value (LTV) ratio of the purchase price (pg 349)

Question 3

3) Adjustments and prorates for unpaid and prepaid items are noted on a seller’s net sheet.
True
False

Answer 3

True (pg 354)

Question 4

4) During a buyer’s market of declining prices and increasing inventory, a sales agent’s main objective is to create buyers.
True
False

Answer 4

True (pg 370)

Question 5

5) To form a contract, an agreement needs to be accompanied by:
a. an offer and acceptance.
b. consideration.
c. capable parties and a lawful purpose.
d. All of the above.

Answer 5

d. All of the above (pg 385)

Question 6

6) To be definite and certain in its terms, an offer to purchase needs to include:
a. a description of the property.
b. the time for performance.
c. Both a and b.
d. Neither a nor b.

Answer 6

c. Both a and b (pg 391)

Question 7

7) An offer to purchase needs to be on a standardized form to be enforceable.
True
False

Answer 7

False (pg 391)

Question 8

8) An option to buy agreement is a bilateral contract.
True
False

Answer 8

False (pg 404)

Question 9

9) A seller who is not represented by a broker forms a binding contract with a buyer when:
a. they are handed a copy of the buyer’s signed counteroffer.
b. they receive a faxed copy of the buyer’s signed counteroffer.
c. Both a and b.
d. Neither a nor b.

Answer 9

c. Both a and b (pg 405)

Question 10

10) _____________ terminates an offer to purchase.
a. Death of the offeree
b. Revocation by the offeror before an acceptance is submitted
c. Destruction of the property before acceptance
d. All of the above.

Answer 10

d. All of the above (pg 408)