Section 11 Multiple Choice

Question 1

Which of the following actions would not terminate a contract?

Answer 1

[A] One party simply changing their mind
Time runs out
Performance is impossible
Mutual agreement (rescission)

Question Feedback
[Section 11C, Slide 27]

Question 2

In case of breach by the buyer, most real estate contracts include a provision that the earnest money be regarded as what?

Answer 2

Punitive damages to the broker
[A] Liquidated damages to the seller
Unliquidated damages to the seller
Unliquidated damages in escrow

Question Feedback
[Section 11C, Slide 32]

Question 3

An agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party is called what?

Answer 3

Bilateral Contract
Informal Contract
Executory Contract
[A] Unilateral Contract

Question Feedback
[Section 11B, Slide 32]

Question 4

Which of the following is NOT an example of a bilateral contract?

Answer 4

A purchase and sale contract between a buyer and seller
[A] An option contract
An exclusive right to sale listing agreement between a seller and a broker
A lease agreement

Question Feedback
[Section 11B, Slide 32]

Question 5

For a contract to be valid it must meet all but which of the following standards?

Answer 5

Contractual Capacity of the Parties
[A] Written offer and acceptance
Legality of object
Consideration

Question Feedback
[Section 11A, Slide 72]

Question 6

What are the elements of a valid contract?

Answer 6

Earnest money, contractual capacity of the parties, offer and acceptance, and legality of object.
[A] Contractual capacity of the parties, offer and acceptance, legality of object, and consideration.
An offer, earnest money, contractual capacity of the parties, and legality of object.
Contractual capacity of the parties, offer and acceptance, notarized signatures, and consideration.

Question Feedback
[Section 11A, Slide 72]

Question 7

Geraldo contracted with Sue for Sue to buy his property. When Geraldo backed out of the contract refusing to sell it to her for no valid reason, Sue took Geraldo to court. The judge ruled in Sue’s favor. What could be said about Sue’s contract?

Answer 7

[A] It is enforceable.
It is unenforceable.
It is void.
It is voidable.

Question Feedback
[Section 11A, Slides 61 & 62]

Question 8

Contracts that cannot be performed within one year and contracts conveying real property must be in writing and signed to be enforceable according to what?

Answer 8

[A] Statute of Frauds
Statute of Limitations
Statute 455
Statute 475

Question Feedback
[Section 11A, Slide 30]

Question 9

Which of the following documents may a real estate licensee complete?

Answer 9

Deed
Mortgage
Promissory note
[A] Buyer broker agreement

Question Feedback
[Section 11B, Slide 11]

Question 10

Which Florida Statute requires sellers of property subject to a mandatory homeowner’s association to provide buyers with a disclosure summary?

Answer 10

Statute 20
Statute 455
Statute 475
[A] Statute 720

Question Feedback
[Section 11D, Slides 51 & 52]

Question 11

Which statement is TRUE regarding homeowner’s association disclosure requirements?

Answer 11

]1) The contract is not voidable even if the disclosure summary is not provided to the buyer before executing the contract.
[A] 2) The buyer cannot waive the right to void the contract if the disclosure has not been provided at the time of or before signing the purchase agreement
3) The buyer is advised to execute the contract without receiving HOA disclosures
4) If the buyer decides to walk away from the contract, he can do so verbally

Question Feedback
[Section 11D, Slides 48 & 49]

Question 12

Kindle had a written contract with Frank. Frank failed to perform. How long does Kindle have to sue Frank per the Statute of Limitations?

Answer 12

3 years
4 years
[A] 5 years
7 years

Question Feedback
[Section 11A, Slide 46]

Question 13

A listing with the purpose of selling property and obtaining a specified amount for the owner is called what?

Answer 13

An open listing
An exclusive right-to-sell listing
An implied listing
[A] A net listing

Question Feedback
[Section 11C, Slide 95]

Question 14

Which of the following statements most accurately describes compensatory damages?

Answer 14

Stipulated with the contract as the amount of money that one party can retain for breach of contract.
one party sues the other to force them to perform as the contract stated.
[A] The amount of money equal to the extent of loss awarded to the damaged party when there has been a breach of contract.
Paid when the judge orders that a contract be rescinded.

Question Feedback
[Section 11C, Slides 38 & 39]

Question 15

Which of the following statements is FALSE regarding The Residential Lead-based Paint Hazard Reduction Act?

Answer 15

A lead-based paint disclosure must be made for residential property sold or rented that were built prior to 1978
Buyers and renters must be given an EPA booklet before the sale or lease
A contract to purchase must allow a 10-day inspection period which buyer can waive
[A] The licensee representing the seller has no duty to the buyer or tenant regarding the disclosure

Question Feedback
[Section 11D, Slide 44]