Unit 3 Topic 6 Flashcards
Under the principle of agency, what is meant by ratification?
A Agreement by an individual to act on behalf of another
B The appointment by an individual of an agent to act on his behalf
C The appointment by an individual of a principal to on his behalf
D Where an agent has acted outside his authority but the principal subsequently
agrees with the action taken
D Where an agent has acted outside his authority but the principal subsequently
agrees with the action taken
Which one of the following statements is TRUE after exchange of contracts?
A The vendor must sell the property to an agreed purchaser but may increase
the price if a better offer is received.
B The vendor must sell the property to the purchaser at the agreed price.
C The vendor may withdraw the contract if a superior offer is received.
D The vendor may withdraw the contract only if they take the property off the
market.
B The vendor must sell the property to the purchaser at the agreed price.
Which one of the following is NOT true in relation to ‘exchange of contracts’?
A It is the point at which the purchaser becomes committed to proceed with the
purchase.
B It is the point at which building insurance should commence.
C It may occur on the same day as completion.
D It is the way a vendor accepts the purchaser’s offer.
D It is the way a vendor accepts the purchaser’s offer.
Which of the following statements in respect of the role of the estate agent is
true?
A The estate agent acts as an agent of the vendor and the purchaser.
B The estate agent acts as an agent of the vendor but not the purchaser.
C Many estate agents charge more commission if they are the sole agent.
D An estate agent is not permitted to charge a fee if a sale is not completed
through them.
B The estate agent acts as an agent of the vendor but not the purchaser.
Which of the following statements is true in relation to a buyer withdrawing
from a house purchase transaction the day before exchange of contracts?
A The potential buyer is entitled to withdraw and has no liability for expenses
or other costs.
B Because the vendor had accepted the offer to buy in good faith, he may sue
the buyer for breach of contract.
C Due to the lateness of the withdrawal, the vendor is entitled to retain the
deposit paid.
D The vendor is entitled to claim all reasonable expenses incurred to date.
A The potential buyer is entitled to withdraw and has no liability for expenses
or other costs.
Which of the following is correct in relation to the role of estate agents?
A They must always accompany prospective purchasers during the viewing of a property.
B There are no restrictions on giving advice to both the buyer and the seller.
C Their charges are usually on a flat fee basis or a percentage of the purchase
price.
D They act as agents to both the buyer and the seller.
C Their charges are usually on a flat fee basis or a percentage of the purchase
price.
Which of the following is correct in relation to estate agents?
A They are not permitted to charge the vendor a fee if no sale is made through
them.
B Where a multiple agency exists, the fee is shared equally between several
estate agents.
C Fees are usually higher when an estate agent has the sole agency.
D Fees are usually lower when an estate agent has the sole agency.
D Fees are usually lower when an estate agent has the sole agency.
In the property buying process, what step may the vendor take if the purchaser
withdraws after exchange of contracts?
A Insist that the purchaser’s deposit be immediately paid as compensation.
B Insist that the purchase proceeds on the terms agreed.
C Sue the purchaser for breach of contract.
D Sue the purchaser’s solicitor for professional negligence.
C Sue the purchaser for breach of contract
Which one of the following would NOT usually be a standard condition to an
offer but would only be added when circumstances required?
A Subject to consent to mortgage form.
B Subject to satisfactory report on title.
C Subject to the lender being able to vary the offer.
D The period for which the offer remains valid.
A Subject to consent to mortgage form.
What is the legal status of an offer of advance from a mortgage lender?
A In all circumstances, it is binding on the applicant but not the lender.
B In all circumstances, it is binding on the lender but not the applicant.
C Is binding on both parties once contracts have been exchanged.
D It can be withdrawn by the lender in certain circumstance
D It can be withdrawn by the lender in certain circumstance
In which of the following circumstances might a lender decide to withdraw a
mortgage offer of advance? If the:
A prospective borrower complains about the amount of the MIG premium.
B prospective borrower receives a large inheritance.
C applicant’s financial circumstances undergo significant change.
D applicant’s solicitor is not known personally to the lender.
C applicant’s financial circumstances undergo significant change
Which of the following is a special condition that may be included in a mortgage offer of advance?
A That the offer remains valid for a specific period of time.
B That a consent to mortgage form, in respect of occupants aged 17 or over, is
required.
C A statement that the lender can vary the terms of the offer.
D A disclaimer that the offer does not give any warranty as to the condition of
the property.
B That a consent to mortgage form, in respect of occupants aged 17 or over, is
required.
Which of the following is a special condition that may be included in a mortgage
offer of advance?
A A disclaimer as to the reasonableness of the purchase price.
B That the offer is subject to a satisfactory report on title.
C The lender’s right to inspect the property following completion of essential
repairs.
D A lender’s right to withdraw the offer.
C The lender’s right to inspect the property following completion of essential
repairs.
In most circumstances, which of the following is true in relation to an
Energy Performance Certificate (EPC)?
A An EPC is only required for new homes.
B An EPC must be commissioned before a property is marketed for sale.
C An EPC must contain information about the property’s gas or electricity
supplier.
D The buyer’s solicitor applies for an EPC as part of the conveyancing
process.
.
B An EPC must be commissioned before a property is marketed for sale.
Parwinder made a successful bid for a property at auction and paid a
deposit. What are the implications if he cannot purchase through with the
purchase?
A Either party can go withdraw from the agreement without penalty up to 28
days after the auction
B The seller can keep the deposit and seek recompense from Parwinder if he
later sells the property for a lower price.
C There are no issues as long as Parwinder withdraws before completion.
D This situation would not occur because Parwidner would have been required
to pay the full purchase on the day of the auction.
B The seller can keep the deposit and seek recompense from Parwinder if he
later sells the property for a lower price.
