Set 7

Question 1

Would an agent be able to assist in drafting a lease, or is this a job for an attorney?

Answer 1

Would require a lawyer

Drafting a lease would require an attorney, as it is preparation of a legal document. Agents, as well as their brokers, may only fill in blanks on pre-printed forms.

Question 2

According to the Uniform Vendor and Risk Act, during the period between the signing of a purchase contract and the date of the closing or possession by the buyer, the risk of any loss to the property is born by the:

A » buyer
B » agent
C » seller
D » buyer and seller equally

Answer 2

The seller bears the risk until closing. At closing, the risk shifts to the new owner.

Question 3

A listing contract is signed on Monday at noon. By when should a seller receive a copy of this contract?
   A  »  On the spot
   B  »  By noon on Tuesday
   C  »  By noon on Thursday
   D  »  By noon on Friday

Answer 3

B » By noon on Tuesday

License law requires that copies of all documents be delivered to the person signing or initialing within 24 hours.

Question 4

Writ of execution

Answer 4

A writ of execution is typically where the court orders a sheriff to seize property and sell it to satisfy a judgment.

Question 5

Amendment vs addendum

Answer 5

An amendment is used to change an item in a contract.

An addendum is used to add something to a contract, not change - an amendment is used for a change.

Question 6

What is an amendment

Answer 6

An amendment is used to change an item in a contract.

Question 7

Is an addendum used to add something to a contract?

Answer 7

Yes

An addendum is used to add something to a contract, not change

Question 8

Specific performance

Answer 8

Specific performance is court action to force completion of a contract.

Question 9

T/F: Puffing is a subjective opinion and is not illegal

Answer 9

True

Puffing is a subjective opinion and is not illegal

Example would be broker saying “this is the best house in the neighborhood”

Question 10

Are oral contracts for the SALE of real estate enforceable?

Answer 10

No

The statute of frauds says that oral contracts for the sale of real estate are unenforceable.

Question 11

Which of the following statements BEST describes the usual legal effect of a contract signed between an adult and a minor?

A » Void on its face
B » Binding on both parties
C » Voidable by the minor
D » Voidable by either party

Answer 11

C » Voidable by the minor

(C) It is voidable by the injured party (minor). We assume the minor is extremely susceptible to being taking advantage of by an adult. Therefore, although the adult is bound, the minor may void it. (A) It is not automatically void as it may be in the best interest of the minor to complete it. (B) The contract is only binding on the adult. (D) The contract is only voidable by the minor.

Question 12

T/F: An offer can always be withdrawn up until acceptance

Answer 12

True

An offer can always be withdrawn up until acceptance

Question 13

Does land ever depreciate?

Answer 13

No

Land does NOT depreciate

Question 14

What term is used to describe the right of the lessor to reclaim a property once a lease expires?

Answer 14

Reversion

Reversion is the right of an owner to get a property back when someone else’s rights expire.

Question 15

T/F: Any item recorded on the public record provides constructive notice to the public;

Answer 15

True

Any item recorded on the public record provides constructive notice to the public;

in other words, any member of the public has access to the information.

Question 16

Is an easement on an adjacent property an example of an appurtenance?

Answer 16

Yes

An appurtenance is a right, privilege or improvement that runs with the land
such as a garage apartment, an easement and a pipeline on a property.