unit 4 real estate contracts and agency Flashcards
a contract can be discharged when it cannot be legally accomplished based on impossibility of performance
true
a contract with a minor is voidable by either party to the contract
false
only the minor has the legal right to make a contractual promise void. so, the minor has “voidable power.”
when a person leases land on which the person has agreed to allow the tenant to construct an office building, the lease is termed a ground lease
true
most real estate contracts are implied
false
it is the written promise to do or not do specific things that makes the contract express. most contractual promises are in writing
the statute of limitations requires that a real estate sales contract be in writing
false
it is the statute of frauds that requires all sales contracts for real property be in writing
an oral real estate sales contract is not enforceable in a court action
true
a counteroffer is a rejection of the original offer
true
in an open listing, the agency authority of all brokers is terminated when the house is sold by any broker or the owner
true
an owner lists her home for $100,000, and the listing broker tells the prospective buyer to submit a low offer because the sell is desperate. the buyer offers $95,000, and the seller accepts. in this situation, the broker was unethical, but because no one was hurt, the broker’s conduct is not improper
false
the broker violated the agency fiduciary duties by not looking for the seller’s best interest (loyalty) as well as disclosing confidential information; therefore, the broker was practicing unethically and illegally
the listing agreement is considered to be terminated once the seller accepts an offer
false
the seller can still negotiate other offers. the property is not off the market unless the seller asks for it to be the temporarily off the market (TOM); if the property closes and funds; or if the termination takes place according to the listing.
