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Real Estate > The Blank Addendum > Flashcards

The Blank Addendum Flashcards

1
Q

contingent cancellation
addendum

A

This addendum is designed to conflict to the Real Estate Purchase Agreement. Use this
Addendum form when representing Buyer.

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2
Q

Which of the following are TRUE regarding the Contingent Cancellation Addendum:
A: It Can Extend The Due Diligence Deadline
B: It Can Extend The Financing & Appraisal Deadline
C: It Can Cancel The Contract If The Seller Does Not Agree To Extend The Deadlines
D: All Of The Above

A

D: All Of The Above

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2
Q

notice of cancellation

A

If Seller does not agree to terms, then this form acts as the Buyer’s notice of cancellation of the
REPC (pursuant to Due Diligence Condition and/or Financing Condition).

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2
Q

extension of deadline

A

Moves Due Diligence and/or Financing &
Appraisal Deadline.

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3
Q

deadline to accept this addendum

A

The last mutually accepted Due Diligence Deadline or Financing & Appraisal Deadline prior to this Addendum to accept the Addendum in accordance with the REPC. If not accepted, the REPC shall be cancelled and the Earnest Money Deposit released to Buyer.

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4
Q

What is the most important part of the extension of the deadline?
A: It Moves The Due Diligence And Or Financing/Appraisal Deadline
B: Allows The Buyer To Continue To The Communication
C: It Allows The Agent To Continue The Discussion
D: It Gives The Buyer Of A Better Understanding Of The Process

A

A: It Moves The Due Diligence And Or Financing/Appraisal Deadline

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5
Q

what is a notice of cancelation?
A: Allows The Buyer And Seller To Cancel Only One Part Of The Contract
B: Gives The Agent The Right To Cancel The Contract And Negotiate Terms
C: Cancels Some Parts Of The Contract
D: If The Seller Does Not Agree To Terms, Then This Forms Acts As The Buyer’s Notice Of Cancelation Of The REPC

A

D: If The Seller Does Not Agree To Terms, Then This Forms Acts As The Buyer’s Notice Of Cancelation Of The REPC

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6
Q

This addendum is designed to conflict to the real estate purchase agreement
A: Foreclosure Statement
B: The REPC
C: Contigent Cancellation Addendum
D: The Cancellation Deed

A

C: Contigent Cancellation Addendum

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7
Q

disclosure of interest

A

This needs to be discussed at the very
beginning along with the REPC.

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8
Q

disclosure of principal as licensee or as relative
of licensee

A

Disclose if the Buyer or Seller is related to
the broker or the sales agent.

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9
Q

how closely related should i disclose?

A

You will never regret disclosing the identity. Always over disclose rather than under
disclose.

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10
Q

The purpose of the Disclosure of Interest Addendum is to
A: Disclose An Interest In Real Property
B: Disclose That The Principal Is A Licensee Or Related To The Licensee
C: Disclose That There Are Unpaid Liens On The Property
D: Disclose The Existence Of Mechanic’s Liens

A

B: Disclose That The Principal Is A Licensee Or Related To The Licensee

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11
Q

This concept is when you disclose if the buyer or seller is related to the broker or the sales agent
A: Disclosure Of Principle As Licensee Or As Relative Of Licensee
B: Disclosure Of Principle As Licensee Or A Potential Relative
C: Disclosure Of Relation
D: Disclosure Of Relation To The Agent

A

A: Disclosure Of Principle As Licensee Or As Relative Of Licensee

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12
Q

__________ should be discussed at the very beginning along with the REPC
A: Disclosure Of Interest
B: Disclosure Of Intent
C: Disclosure Of Wants
D: Disclosure Of Requirements

A

A: Disclosure Of Interest

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13
Q

Which statement is true:
A: Always Over Disclose Rather Than Under Disclose
B: Only Disclose What Is Important
C: Only Disclose What Is Necessary
D: Always Disclose What You Think Is Right

A

A: Always Over Disclose Rather Than Under Disclose

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14
Q

When naming the addenda stick with same classification system

A

(1, 2, 3, etc. or A, B, C,
etc.) , in order, to avoid confusion.

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15
Q

option to keep house on market “time
clause” addendum

A
  • Right to accept other offers
  • Right to remove conditions
  • Failing to respond the Seller’s notice
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16
Q

right to accept other offers

A

Buyer and Seller agree that Seller may continue receiving offers on Property. Seller will notify Buyer within number of days. (This is common in a hot real estate market.)

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17
Q

right to remove conditions

A

Buyer has number of hours to remove the following conditions from the REPC: Due Diligence Condition Financing & Appraisal Condition Subject to the Sale of Buyer’s Residence Other

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18
Q

Failure to respond the Seller’s notice, allows the REPC to become cancelled, and….

A

releases the Earnest Money Deposits to the
Buyer

it is crucial to monitor your contracts (email, phone) carefully in the event that you are unavailable. The timeline is so tight. You do not want your client to miss out because you missed the timeline.

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19
Q

The Option to Keep House on Market “Time Clause” Addendum:
A: Allows The Seller To Accept Other Offers
B: Requires The Seller To Notify Buyer If Seller Does Accept Additional Offers
C: Allows The Buyer A Specified Number Of Hours To Agree To Remove Conditions From The REPC
D: All Of The Above

A

D: All Of The Above

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20
Q

The Conditions addressed on the “Option to Keep House on Market ‘Time Clause’ Addendum” are:
A: The Due Diligence Condition
B: The Financing And Appraisal Condition
C: The Subject To Sale Of Buyer’s Residence Condition
D: All Of The Above

A

Condition
D: All Of The Above

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21
Q

Which statement is true:
A: It Is Crucial To Monitor Your Contracts Carefully At All Times
B: Only Communicate With Your Client About Certain Parts Of The Contract
C: It Is Crucial To Communicate With The Customers Only
D: It Is Crucial To Look At Contracts Only At The Deadline

A

A: It Is Crucial To Monitor Your Contracts Carefully At All Times

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22
Q

When naming the addenda always stick with the same __________
A: Classification
B: Different Numbering System
C: Do Not Label The Addenda
D: Only Label Certain Addenda

A

A: Classification

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23
Q

subject to sale of buyer’s property

A

Use this addendum when you represent a Buyer that has to sell another Property before buying the new Property.

24
Q

subject to sale condition

A

The Buyer’s obligation to purchase property is conditioned upon the closing of the sale of the buyers property by the buyers closing deadline. If the buyer property does not sale within 4 days of the buyers closingDeadline, cancel the REPC by providing written notice to the seller. In the event of this cancellation, the earnest Money Deposit shall be released to Buyer.

25
Q

buyer disclosures:

A
  • Buyer must disclose it the Property they are trying to sell is listed through a real estate brokerage. List the brokerage name and address.
  • Buyer must disclose if the property is currently under contract.
  • Optional Additional Terms
26
Q

buyer’s property IS currently under contract

A

-The Buyer must disclosure the Acceptance Date.
-The Due Diligence Deadline, the Financing & Appraisal Deadline, and the Settlement Date. No extensions on these deadlines should be made withheld in sellers sole discretion
-If the contract is cancelled for any reason, it is the Buyer’s responsibility to let the Seller know immediately.

27
Q

buyer’s property IS NOT currently under contract

A

-Buyer shall provide a date by which they will have their Property under contract.
-If Buyer has not entered into a 3rd Party Contract by the said Deadline, the Seller or the Buyer may cancel the REPC by providing written notice no later than 4 days prior
to the Settlement Date. Earnest Money is returned to the Buyer.
-If the purchaser cancels the 3rd Party Contract, the Buyer shall provide the Seller with written notice no later than 4 days after such cancellation. The Seller or the Buyer may cancel the REPC by providing written notice no later than 4 days prior to the Settlement Date. Earnest Money is returned to the Buyer.

28
Q

If the Seller finds themselves in a multiple offer situation, they might chose to go with another offer, even if lower, because the Buyer has to sell their current Property in order to buy the
new property.

A

depends on the conditions

29
Q

The Subject to Sale of Buyer’s Property Addendum:
A: Provides Disclosure To The Seller That Their Obligation To Purchase The Property Is Conditioned On Buyer’s Property
B: Provides Disclosure As To Whether Or Not That Property Is Listed
C: Provides Disclosure As To Whether Or Not That Property Is Under Contract
D: All Of The Above

A

D: All Of The Above

30
Q

In reference to the Subject to Sale of Buyer’s Property Addendum, if the Buyer’s ability to purchase the property IS conditioned on the sale of another property and that property IS under contract:
A: The Buyer Does Not Need To Disclose The Deadlines On Their 3rd Party Contract
B: The Buyer Does Not Need To Disclose To The Seller If The Purchaser On Their 3rd Party Contract Cancels
C: The Buyer Does Need To Disclose To The Seller If The Purchaser On Their 3rd Party Contract Cancels
D: The Buyer Can Make Extensions To The 3rd Party Contract Without Disclosing It To The Seller

A

C: The Buyer Does Need To Disclose To The Seller If The Purchaser On Their 3rd Party Contract Cancels

31
Q

In reference to the Subject to Sale of Buyer’s Property Addendum, if the Buyer’s ability to purchase the property IS conditioned on the sale of another property and that property IS NOT under contract:
A: The Buyer Does Not Need To Enter Into A 3rd Party Contract By Any Specific Deadline
B: The Buyer Does Not Need To Disclose To The Seller If The Purchaser On Their 3rd Party Contract Cancels
C: The Seller May Cancel The REPC If The Buyer Has Not Entered Into A 3rd Party Contract By The 3rd Party Contract Deadline
D: The Buyer Can Make Extensions To The 3rd Party Contract Without Disclosing It To The Seller

A

C: The Seller May Cancel The REPC If The Buyer Has Not Entered Into A 3rd Party Contract By The 3rd Party Contract Deadline

32
Q

When it comes to multiple offers, always let the seller decide _____
A: Which Offer To Accept
B: Let Them Think About The Offers For A Long Period Of Time
C: Let The Seller Decide With The Buyer
D: Only Allow The Seller To See Certain Options

A

A: Which Offer To Accept

33
Q

closing costs

A

Seller and Buyer agree the Buyer accepts the Property as described in REPC. Seller will contribute $ at Settlement to be applied toward:

A permanent reduction
A temporary reduction
The mortgage loan interest rate
Mortgage financing costs
Closing costs
Prepaids/Escrows
Any unused portion of contribution maybe be applied to reduce Purchase Price.

34
Q

purchase price
reduction

A

Buyer and Seller agree that Purchase Price shall be reduced to $ Buyer discovers expensive repair that is needed, the Buyer may negotiate a lower Purchase Price.

35
Q

repairs to be made by seller

A

Buyer and Seller agree that Seller will be responsible for completion of the repairs by the Settlement Deadline. Write
agreed upon repairs, very specifically on the lines provided. Be very clear and specific to avoid misunderstanding on what
repairs should be done and whom should do the repairs.

36
Q

buyer remedies for unfinished repairs

A

*If the repairs are not complete by the Settlement Date, the Buyer may finish the repairs after closing Orr may choose from the following remedies:
* Cancel the REPC and the Buyer would retain the Earnest Money Deposit Complete the purchase of the Property and purse other remedies available at law (solely for the incomplete or unfinished repairs) after Closing. The terms of this contract shall survive closing.

37
Q

due diligence condition

A

Buyer’s Due Diligence IS deemed resolved and
is removed unless checked below.

38
Q

The Resolution of Due Diligence Addendum accomplishes the following:
A: Allows The Seller To Contribute To The Buyer’s Closing Costs
B: Allows Buyer And Seller To Agree To A Purchase Price Reduction
C: Allows Buyer And Seller To Agree That Specific Repairs Will Be Made
D: All Of The Above

A

D: All Of The Above

39
Q

Be sure to always to use the most current version of each form
A: False
B: True
C: Depending On The Situation
D: Depending On The Broker

A

B: True

40
Q

Closing costs vary depending on the size of the loan and the tax laws in the area
A: True
B: False
C: The Closing Costs Do Not Count
D: The Closing Costs Are Set

A

A: True

41
Q

The repairs that are agreed upon by the buyer and seller must be completed by:
A: With The Deadline Given By The Form
B: When The Buyer Wants It Done
C: Whenever The Seller Feels Like It
D: When The Seller Thinks Its Right

A

A: With The Deadline Given By The Form

42
Q

rights as a real estate agent

A

real Estate agents have the right to fill out forms. State Law: 61-2f-306. Rights and privileges of real estate licensees to fill out forms or documents.

43
Q

your client wants to use different forms approved by the UAR, the real estate commission, the state attorney general’s office, or the division of real estate, run this by your principal broker. They will have to consult their legal team to get permission to use different
forms.

A
44
Q

use the blank addendum as a last resort

A

Follow this order:
* State Approved Forms
* MLS Forms (Any form that has been approved by the Utah Association of Realtors found on MLS, has been
thoroughly vetted by UAR’s legal counsel and is safe for you to use)
* Supplementary Clauses - be familiar with all. There might be a form already created to handle your needs.
* Brokerage Approved Forms
* Forms Prepared by an Attorney
* Last Resort - The Blank Addendum

45
Q

things to remember when using the blank addendum

A
  • Use Correct Spelling
  • Use Proper Grammar
  • Don’t Try to Use “Big Words” or “Legal Words”
  • Do NOT reiterate portions of the contract - only new and necessary
  • Say it Simply and Clearly
  • Be as Specific as Possible
  • Proofread Your Work
46
Q

As real estate licensees, we have a license to:
A: Create Forms
B: Create Forms Based On Our Clients Specific Wants And Needs
C: Create Forms Based On Other States’ Accepted And Approved Forms
D: Fill In Approved Forms

A

D: Fill In Approved Forms

47
Q

The Blank Addendum should be used as a(n):
A: As Our First “Go-To” Form
B: Before Supplementary Clauses
C: Before State Approved Forms
D: Last Resort

A

D: Last Resort

48
Q

What are the important aspects to remember when using a blank addendum?
A: Say It Simply And Clearly
B: Use Proper Grammar
C: Use Big Words
D: Both A & B

A

D: Both A & B

49
Q

The Buyer has completed their Due Diligence and they found that the property needs a new roof. The Buyer and Seller have agreed to a $10,000 price reduction. Which Addendum should be used:
A: The Contingent Cancellation Addendum
B: The Resolution Of Due Diligence Addendum
C: The “Time Clause” Addendum
D: The Blank Addendum

A

B: The Resolution Of Due Diligence Addendum

50
Q

The Buyer has completed their Due Diligence and they found that the property needs a new roof. The Seller has agreed to repair the roof. Which Addendum should be used:
A: The Contingent Cancellation Addendum
B: The Resolution Of Due Diligence Addendum
C: The “Time Clause” Addendum
D: The Blank Addendum

A

B: The Resolution Of Due Diligence Addendum

51
Q

The Buyer cannot purchase their new home in Lehi without selling their home in Saratoga Springs. Which Addendum should be used:
A: The Contingent Cancellation Addendum
B: The Resolution Of Due Diligence Addendum
C: The Subject To Sale Of Buyer’s Property Addendum
D: The Blank Addendum

A

C: The Subject To Sale Of Buyer’s Property Addendum

52
Q

The Buyer needs more time to get their financing in place. Which addendum should be used?
A: The Contingent Cancellation Addendum
B: The Resolution Of Due Diligence Addendum
C: The “Time Clause” Addendum
D: The Blank Addendum

A

A: The Contingent Cancellation Addendum

53
Q

The Seller is not happy that the Buyer needs to sell their home in Saratoga Springs before they can purchase their home in Lehi. Which addendum should their agent use?
A: The Contingent Cancellation Addendum
B: The Resolution Of Due Diligence Addendum
C: The “Time Clause” Addendum
D: The Blank Addendum

A

C: The “Time Clause” Addendum

54
Q

The Buyer, Michelle, is related to her agent, Tracie. Which addendum should be used?
A: The Contingent Cancellation Addendum
B: The Resolution Of Due Diligence Addendum
C: The “Time Clause” Addendum
D: The Disclosure Of Interest Addendum

A

D: The Disclosure Of Interest Addendum

55
Q

The Buyer has completed their Due Diligence and they found that the property needs a number of repairs. The Seller has agreed to contribute $6500 toward the Buyer’s Closing Costs . Which Addendum should be used:
A: The Contingent Cancellation Addendum
B: The Resolution Of Due Diligence Addendum
C: The “Time Clause” Addendum
D: The Blank Addendum

A

B: The Resolution Of Due Diligence Addendum

56
Q

Annie Agent is working with Bonnie Buyer, who is very savvy and very picky. She wants a number of things included in the Real Estate Purchase Contract that are not part of the contract as it is written. The things Bonnie wants are not addressed in any other State Form or any other Supplementary Clauses. Which addendum should Annie use?
A: The Contingent Cancellation Addendum
B: The Resolution Of Due Diligence Addendum
C: The “Time Clause” Addendum
D: The Blank Addendum

A

D: The Blank Addendum

57
Q

The Buyer, Michelle, is an agent. Which addendum should be used?
A: The Contingent Cancellation Addendum
B: The Resolution Of Due Diligence Addendum
C: The “Time Clause” Addendum
D: The Disclosure Of Interest Addendum

A

D: The Disclosure Of Interest Addendum

58
Q

The Smiths have fallen in love with a brand new home in DayBreak. They have made an offer on it. The Seller wants and needs to know whether or not the Smiths need to sell their existing home in Herriman in order to purchase their new DayBreak home. Which addendum should be used?
A: The Contingent Cancellation Addendum
B: The Resolution Of Due Diligence Addendum
C: The Subject To Sale Of Buyer’s Property Addendum
D: The Disclosure Of Interest Addendum

A

C: The Subject To Sale Of Buyer’s Property Addendum

59
Q
A

Real Estate (52 decks)

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