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CO RE Exam > Unit 5 (part 3) > Flashcards

Unit 5 (part 3) Flashcards

1
Q

Where do the date and deadline appear on the Contract to Buy and Sell?

A
  • Only in the date and deadline table

- Defined in appropriate referenced sections

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2
Q

Can fixtures be included on a Contract to Buy and Sell?

A

No

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3
Q

Is it required for personal property to be included in the Contract to Buy and Sell?

A

Yes. Inclusions would be listed in a different font.

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4
Q

When will the personal property items be transferred to your name?

A

If they are listed, they will transfer as of the date of the contract and will transfer unless specifically excluded in the CBS.

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5
Q

Do lease appliances transfer? If so, where do you put the lease details?

A

Yes, they can. Detail in the additional provisions section.

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6
Q

What is a loan condition deadline?

A

The contract is contingent on the buyer obtaining a loan with conditions that are acceptable to the buyer’s opinion. If the buyer is unable to obtain a loan that is acceptable, the buyer may terminate by written notice to the seller before the loan condition deadline.

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7
Q

What happens if the buyer doesn’t meet the loan condition deadline?

A

Earnest money is lost

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8
Q

Is credit info given to the seller if they are financing?

A

Yes. However, they cannot share it.

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9
Q

Is the cost of an appraisal a set amount?

A

No. It is negotiated

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10
Q

Can FHA appraisals be negotiated if the appraised amount is not agreed-upon amount? How do you resolve?

A

Yes; Buyer can bring money to the closing or buyer and seller can negotiate a new price

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11
Q

What is the cost of the title and who pays for it?

A

It is negotiated

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12
Q

When is the owner’s policy of title insurance delivered to the buyer?

A

After closing

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13
Q

What is title insurance?

A

Covers the buyer for what could be found out in the future.

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14
Q

What are common interest community (CIC)?

A

HOA rules. Mandatory assessments

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15
Q

Can the CIC create a lien on your house if you don’t pay dues?

A

Yes

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16
Q

Who must provide CIC documents to the buyer?

A

The seller

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17
Q

Can the buyer terminate the contract if CIC conditions are unacceptable? If so, before when?

A

Yes. Before the objection deadline

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18
Q

Does the seller have to change CIC rules if the buyer isn’t happy?

A

No

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19
Q

What is title advisory?

A

Warning that third parties may own rights in minerals or other interests, giving them right to enter and use the property (i.e. utility easement.

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20
Q

Can you terminate the right for a third party enter your property?

A

Yes

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21
Q

What happens if a Lead-based paint disclosure is not signed before acceptance of the contract?

A

The contract is VOID (not voidable, but void)

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22
Q

Is it required for the buyer to be given the lead-based paint disclosure prior to the seller accepting the contract?

A

Yes

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23
Q

The seller agrees by contract to provide a completed Seller’s ______ _______.

A

Property Disclosure

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24
Q

If the seller checked the box in the listing agreement stating that the property disclosure is not being provided, what does the listing broker have to do?

A

Counter the Contract to Buy and Sell, stating it will not be provided

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25
Q

The buyer has until the _____ deadline to inspect and send any request to the seller via the approved form.

A

objection

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26
Q

The parties must resolve inspection issues before the ______ deadline.

A

Resolution

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27
Q

The contract will _______ on or before the _______ deadline if parties don’t fix.

A

Terminate; resolution

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28
Q

True or False? The seller needs to fix the issues before the resolution deadline?

A

False. Seller just needs to agree to fix it or pay $$ to buyer for fixing.

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29
Q

A methamphetamine laboratory disclosure is required if the property has been cleaned and received state certification?

A

No

30
Q

If a meth property has not been cleaned, is the seller required to disclose?

A

Yes

31
Q

Does the buyer have the right to have a property tested for meth? Can they terminate if it does?

A

Yes. If it hasn’t been cleaned or state certified, they can terminate the contract on or before closing.

32
Q

What is the purpose of a walk-through?

A

To verify the physical condition of the property and inclusions

33
Q

If the buyer is in default, there are ____ possible remedy provisions for the seller. What are they?

A
  • Specific performance (available to all parties)

- Liquidated damages (only available to the seller)

34
Q

If the default is liquidated damages, a box must be checked for ________ __________.

A

specific performance

35
Q

Do all commission-approved contracts allow for specific performance?

A

Yes

36
Q

What is the default seller’s remedy for liquidated damages?

A

Keeping earnest money

37
Q

How long after a termination must the broker return the earnest money?

A

Immediately

38
Q

In what circumstance does the broker not return earnest money immediately?

A

If there is an earnest money dispute

39
Q

Do the buyer and seller mediate if there is an earnest money dispute?

A

yes

40
Q

In an earnest money dispute, what 3 actions may a broker do?

A
  1. Hold the money until the parties give mutual written instructions (Earnest Money Release form)
  2. Send the money to the appropriate court (interplead the parties) to settle the matter.
  3. Notify the buyer and the seller to send any information about a lawsuit within 120 days or the broker will return the money to the buyer
41
Q

Is notice to the listing broker the same thing as notice to to the seller? And with buyers broker/buyer?

A

Yes

42
Q

Does notice, delivery, and choice of law allow for e-signatures? If so, can a party request original signatures?

A

Yes, Yes

43
Q

Do the brokers sign to acknowledge that they have received the earnest money? If so, when should they wait to sign until?

A

Yes; sign after it is in the company’s escrow account (paper trail)

44
Q

Does a counter-proposal terminate the offer?

A

Yes, and creates a new one

45
Q

Who is an offeree?

A

Seller

46
Q

Is the counterproposal required to be attached to the original offer?

A

Yes

47
Q

Does the seller sign the offer or the counteroffer?

A

Counteroffer

48
Q

Can the seller accept another offer from another party if the counteroffer has been signed by the seller?

A

No

49
Q

Can the seller withdraw a signed counterproposal/offer if the buyer hasn’t signed it yet?

A

Yes

50
Q

What is the inspection notice used for?

A

The buyer must use this form to notify the seller of requests to fix or provide $ for items found during the inspection.

51
Q

Does the inspection notice change the objection or resolution deadline? If not, what does?

A

No. Broker must use an amend/extend contract form.

52
Q

What is an agreement to amend/extend contract used for?

A
  • To modify the Contract to Buy and Sell only
  • Used to extend or change provisions (i.e. closing date)
  • Must be signed by all parties before the deadline
53
Q

What is a Licensee Buyout Addendum?

A

If a licensee, or employing broker, is buying a property that they listed or intended to list

54
Q

What is a Commission Position Statement (CP-23)

A

A Licensee Buyout Addendum (If a licensee, or employing broker, is buying a property that they listed or intended to list)

55
Q

Who used the Licensee Buyout Addendum?

A
  • Designated listing broker

- Employing broker of the listing company

56
Q

What does the Licensee Buyout Addendum indicate?

A
  • The broker/buyer is a licensee and can fund the purchase
  • The broker/buyer may make a profit on a resale
  • The broker/buyer will be obligated to pay losses or expenses
57
Q

If a broker who is listing a property purchases the house, is the seller required to pay any costs or commission fees to the buyer/broker?

A

No

58
Q

Do addendum and addenda mean the same thing?

A

Yes, however addendum is singular

59
Q

Can brokers or brokerage firms write/create or draft addenda?

A

No

60
Q

Who can draft, write, or create an addendum?

A
  • Principal (buyer or seller)
  • An attorney representing the principal
  • The attorney for the brokerage firm
61
Q

Attachments are hooked to ____ _____.

A

lawful objectives

62
Q

What is the purpose of an attachment?

A

to describe or explain more about what is already part of the contract.

63
Q

Is an addendum an attachment?

A

Yes

64
Q

What are additional provisions?

A

Things that have nothing to do with what is in the contract (i.e. that you will lower the listing price in xxx days)

65
Q

Where are the additional provisions written?

A

Written as negotiated i a Contract to Buy and Sell or a listing/buyer representation agreement.

66
Q

Additional provisions may not contain what language?

A

Anything that lessens the liability or responsibility of the brokers. (i.e. that a buyer can sell current home before accepting this offer, must clean backyard, etc.)

67
Q

What are amendments?

A

Change or modify things that are mutually agreed upon (i.e. inspection objection/resolution deadline, any other dates, etc.)

68
Q

For amendments, what form do you use?

A

Agreement to Amend/Extend Contract

69
Q

What form do you use to change the Inspection Objection/Resolution?

A

Agreement to Amend/Extend Contract. All parties must sign on or before the deadline, or else the contract is terminated

70
Q

True or False? The Agreement to Amend/Extend Contract must be signed by all parties before the deadline?

A

True

CO RE Exam (10 decks)

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