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Post 302 > Section 9. Other Types of Purchase Contracts > Flashcards

Section 9. Other Types of Purchase Contracts Flashcards

1
Q

When working with builders and developers, the agent should be knowledgeable about all of the following EXCEPT:
a. What agencies hold licensed contractors and licensed real estate professionals liable
b. If a particular contractor is going to complete the project
c. If the person is a licensed real estate professional
d. If the person is a licensed contractor

A

b. If a particular contractor is going to complete the project

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2
Q

All of the following are aspect of seller financing about which a broker should be able to advise her client EXCEPT:
a. Contracts for deed
b. Kickbacks
c. Alienation
d. Assumptions

A

b. Kickbacks

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3
Q

What governing body regulates the licensing of general contractors:
a. Bureau of Land Management
b. US Department of Labor
c. NC Real Estate Commission
d. NC Licensing Board for General Contractors

A

d. NC Licensing Board for General Contractors

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4
Q

All of the following terms are synonymous EXCEPT:
a. Subordinated Seller Mortgage
b. Seller Carryback
c. Seller kickback
d. Seller financing

A

c. Seller kickback

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5
Q

If the client buys a lot and has the builder or contractor build a custom home:
a. Use the standard form 2T and attach the Additional Provisions Addendum 2A11-T
b. Use the Vacant Land Offer to Purchase and Contract 12-T and sign a construction agreement with the builder
c. Use the Offer to Purchase and Contract New Construction Form 800-T
d. Use standard form 2T and attach the New Construction Addendum 2A3-T

A

c. Use the Offer to Purchase and Contract New Construction Form 800-T

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6
Q

Which of the following regarding owner financing is FALSE:
a. Seller may never act as the bank
b. Buyer is not obligated to use the seller as the bank for financing
c. Seller may act as the bank for a subordinated part of the financing
d. Seller may act as the bank for all the financing

A

a. Seller may never act as the bank

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7
Q

Which of the following regarding contracts is TRUE:
a. Provisions in contracts drafter by owners or builders can be much different than in standard forms
b. Brokers may draft contracts for builders
c. Builders may not draft their own contracts, they must use industry standard contracts
d.Owners may not use their own contracts, they must be written by an attorney

A

a. Provisions in contracts drafter by owners or builders can be much different than in standard forms

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8
Q

When buying an already constructed, newly built home:
a. Use the standard form 2T and attach the Additional Provisions Addendum 2A11-T
b. Use the Vacant Land Offer to Purchase and Contract 12-T and sign a construction agreement with the builder
c. Use the Offer to Purchase and Contract New Construction Form 800-T
d. Use standard form 2T and attach the New Construction Addendum 2A3-T

A

d. Use standard form 2T and attach the New Construction Addendum 2A3-T

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9
Q

Which of the following items are NOT freely negotiated with seller financing?
a. Disclosure timeline
b. Balloons
c. Interest
d. Down Payment

A

a. Disclosure timeline

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10
Q

At the website of the NC licensing board for general contractors, a broker can find information on all of the following EXCEPT:
a. If a buyer or a seller is going to have to pay for damages that require a contractor
b. Brochures and client information
c. Index for licensees
d. General information on contractors

A

a. If a buyer or a seller is going to have to pay for damages that require a contractor

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11
Q

In which situation would a licensee use the Vacant Land Offer to Purchase and Contract 12-T and sign a construction agreement with the builder:
a. When a client buys a home in a historical district
b. When a client buys a home that has been recently built by a contractor or developer
c. When a client buys a lot and has the builder or contractor build a custom home
d. When a client buys a lot separately and hires a custom homebuilder

A

d. When a client buys a lot separately and hires a custom homebuilder

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12
Q

If a client buys a lot separately and hires a custom homebuilder:
a. Use the standard form 2T and attach the Additional Provisions Addendum 2A11-T
b. Use the Vacant Land Offer to Purchase and Contract 12-T and sign a construction agreement with the builder
c. Use the Offer to Purchase and Contract New Construction Form 800-T
d. Use standard form 2T and attach the New Construction Addendum 2A3-T

A

b. Use the Vacant Land Offer to Purchase and Contract 12-T and sign a construction agreement with the builder

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13
Q

Who within a corporation is NOT exempt from having an active real estate license if the corporation owns or leases property:
a. Directors
b. Officers
c. Salaried W2 employees
d. The BIC of the corporation

A

d. The BIC of the corporation

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14
Q

All of the following items are addressed in the New Construction Addendum EXCEPT:
a. Insurance
b. Changes
c. Construction
d. Description

A

a. Insurance

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15
Q

What is required on subordinate financing:
a. BIC approval
b. Lender approval
c. Seller approval
d. Buyer approval

A

b. Lender approval

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16
Q

An Alienation Clause in a loan prevents:
a. Qualification
b. Assumption
c. Novation
d. Origination

A

b. Assumption

17
Q

Where can an alienation clause be found:
a. Additional Provisions Addendum
b. Offer to Purchase and Contract Agreement
c. Buyer’s receipt from lender
d. Seller’s promissory note

A

d. Seller’s promissory note

18
Q

If a client buys a lot separately and hires a custom homebuilder:
a. Use the standard form 2T and attach the Additional Provisions Addendum 2A11-T
b. Use the Vacant Land Offer to Purchase and Contract 12-T and sign a construction agreement with the builder
c. Use the Offer to Purchase and Contract New Construction Form 800-T
d. Use standard form 2T and attach the New Construction Addendum 2A3-T

A

b. Use the Vacant Land Offer to Purchase and Contract 12-T and sign a construction agreement with the builder

19
Q

Is which situation would a licensee use the standard form 2T and attach the New Construction Addendum 2A3-T:
a. When a client buys a home in a historical district
b. When a client buys a home that has been recently built by a contractor or developer
c. When a client buys a lot and has the builder or contractor build a custom home
d. When a client buys a lot separately and hires a custom homebuilder

A

b. When a client buys a home that has been recently built by a contractor or developer

20
Q

In which situation would a licensee use the Vacant Land Offer to Purchase and Contract 12-T and sign a construction agreement with the builder:
a. When a client buys a home in a historical district
b. When a client buys a home that has been recently built by a contractor or developer
c. When a client buys a lot and has the builder or contractor build a custom home
d. When a client buys a lot separately and hires a custom homebuilder

A

d. When a client buys a lot separately and hires a custom homebuilder

21
Q

If the construction of a dwelling is not completed or if extensive additional improvements are to be made or appraisal is dependent on their value, which form should be used:
a. Use the standard form 2T and attach the Additional Provisions Addendum 2A11-T
b. Use the Vacant Land Offer to Purchase and Contract 12-T and sign a construction agreement with the builder
c. Use the Offer to Purchase and Contract New Construction Form 800-T
d. Use standard form 2T and attach the New Construction Addendum 2A3-T

A

c. Use the Offer to Purchase and Contract New Construction Form 800-T

22
Q

If the client buys a lot and has the builder or contractor build a custom home:
a. Use the standard form 2T and attach the Additional Provisions Addendum 2A11-T
b. Use the Vacant Land Offer to Purchase and Contract 12-T and sign a construction agreement with the builder
c. Use the Offer to Purchase and Contract New Construction Form 800-T
d. Use standard form 2T and attach the New Construction Addendum 2A3-T

A

c. Use the Offer to Purchase and Contract New Construction Form 800-T

23
Q

When working with builders and developers, the agent should be knowledgeable about all of the following EXCEPT:
a. What agencies hold licensed contractors and licensed real estate professionals liable
b. If a particular contractor is going to complete the project
c. If the person is a licensed real estate professional
d. If the person is a licensed contractor

A

b. If a particular contractor is going to complete the project

24
Q

What is an assumable mortgage:
a. The buyer is able to transfer the debt of a previous property onto the new property that he is buying
b. The seller is able to transfer the remaining debt on the property being sold to another property
c. The buyer begins a new loan at the purchase of a property
d. The buyer assumes the previous owner’s remaining debt on the property

A

d. The buyer assumes the previous owner’s remaining debt on the property

25
Q

All of the following items are addressed in the New Construction Addendum EXCEPT:
a. Completion of additional improvements
b. Inspections
c. Lead-based paint
d. Costs of construction

A

c. Lead-based paint

26
Q

All of the following terms are synonymous EXCEPT:
a. Subordinated Seller Mortgage
b. Seller Carryback
c. Seller kickback
d. Seller financing

A

c. Seller kickback

Post 302 (10 decks)

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