6 - Hour Contract questions

Question #2 of 5 Question ID: 1415127 Which of the following leases may be oral and still be enforceable? A) A lease for less than four units B) A lease of less than one year C) A commercial lease D) A vacant land lease

B) A lease of less than one year

Question #3 of 5 Question ID: 1415135 Which of these is generally included in an Arizona? A) Rent amounts and deadlines for payment B) All of these C) Cleaning and maintenance responsibilities D) Key distribution

B) All of these

Question #3 of 5 Question ID: 1415125 Which of these is a rejection of an offer? A) Contingency B) Counteroffer C) Amendment D) Addendum

B) Counteroffer

Question #1 of 5 Question ID: 1415066 Title companies frequently use which of the following instead of real estate licensee generated contracts? A) Contracts for sale. B) Escrow instructions. C) Verbal instructions. D) Loan documents.

B) Escrow instructions.

Question #4 of 5 Question ID: 1415089 A contract that has not been fully performed is called what type of contract? A) Informal B) Executory C) Bilateral D) Executed

B) Executory

Question #5 of 5 Question ID: 1415150 Which of the following is NOT required to be kept in ADRE brokerage mandated files? A) Escrow and settlement statements B) Loan documents C) Void/rejected offers D) Property management agreements

B) Loan documents

Question #5 of 5 Question ID: 1415144 Which of these is a token amount to simply indicate who won or lost the dispute? A) Specific damages B) Nominal damages C) Liquidated damages D) Compensatory damages

B) Nominal damages

Question #5 of 5 Question ID: 1415070 Which of the following is TRUE regarding "pencil changes" to a contract? A) They are allowable in Arizona but not in other states. B) They are allowable in Arizona contract writing but may cause confusion. C) Pencil changes automatically void a contract. D) They are the only accepted method for modifying real estate contracts once they are originally written.

B) They are allowable in Arizona contract writing but may cause confusion.

Question #4 of 5 Question ID: 1415083 Where there is a valid offer, voluntary and unqualified acceptance, plus an understanding of the terms of the contract by all parties, it is called A) mutual assent. B) all of these. C) offer and acceptance. D) meeting of the minds.

B) all of these.

Question #4 of 5 Question ID: 1415113 The offering price is A) included in the listing contract. B) all of these. C) allowed to be raised or lowered throughout the sales process. D) determined by the seller with aid from the real estate professional.

B) all of these.

Question #2 of 5 Question ID: 1415142 A transaction fails to close due to missing a deadline specified in the purchase contract. The contract is A) completed. B) breached. C) legally excused. D) renewed.

B) breached.

Question #1 of 5 Question ID: 1415104 Conflicts of interest, confidentialty, and misrepresentations of performance are all concerns in situations of A) buyer agency. B) dual agency. C) single agency. D) seller agency.

B) dual agency.

Question #5 of 5 Question ID: 1415140 Damages which are imposed as punishment on the breaching party are called A) compensatory. B) exemplary. C) liquidated. D) nominal.

B) exemplary.

Question #2 of 5 Question ID: 1415077 An involuntary forcing of someone into a contract means the signer A) is unable to produce a legal name prior to signing. B) is under duress and thus does not have a meeting of the minds. C) does not have the capacity to sign. D) cannot be forced to provide consideration.

B) is under duress and thus does not have a meeting of the minds.

Question #3 of 5 Question ID: 1415058 With regard to Arizona real estate contracts, licensees may NOT A) write commercial real estate contracts. B) provide information or direction that might be considered legal advice. C) do any of these. D) fill out bills of sale.

B) provide information or direction that might be considered legal advice.

Question #4 of 5 Question ID: 1415129 The right of landlords and owners to get the rental property back after lease termination is called A) actual eviction. B) reversionary. C) constructive eviction. D) regressive.

B) reversionary.

Question #2 of 5 Question ID: 1415097 Seller brokerage and buyer brokerage are examples of A) unrepresented seller agency. B) single agency. C) unrepresented buyer agency. D) dual agency.

B) single agency.

Question #2 of 5 Question ID: 1415103 In Arizona, when a brokerage represents only the seller in a real estate transaction, it is called A) dual agency. B) single agency. C) multiple agency. D) consented agency.

B) single agency.

Question #5 of 5 Question ID: 1415060 Under Article 26, the only contractual documents an Arizona licensee may complete, fill out, or executed are A) purchase agreements. B) those incidental to a real estate transaction. C) lease agreements. D) listing agreements.

B) those incidental to a real estate transaction.

Question #3 of 5 Question ID: 1415154 Arizona licensing laws require any licensee acting as a designated broker, temporary designated broker, self-employed broker, and sole proprietor broker to take A) two, 3-hour classes in broker management clinics. B) three, 3-hour classes in broker management clinics. C) one, 6-hour class in contract writing and one, 3-hour class in broker management clinics. D) one, 6-hour class in contract writing.

B) three, 3-hour classes in broker management clinics.

Question #5 of 5 Question ID: 1415080 A contract missing one or more of the essential elements of a valid contract is A) unconscionable. B) void. C) voidable. D) informal.

B) void.

Question #5 of 5 Question ID: 1415100 Dual agency is not permitted A) in vacant land transactions. B) when one or both parties in a transaction will not agree to the dual agency. C) in commercial transactions. D) in rentals.

B) when one or both parties in a transaction will not agree to the dual agency.

Question #1 of 5 Question ID: 1415146 Brokerage incoming contract reviews must be accomplished A) immediately upon receipt. B) within 10 days. C) as soon as possible but there is no formal deadline. D) within 30 days.

B) within 10 days.

Question #5 of 5 Question ID: 1415152 In Arizona, the designated brokers must review each listing agreement, purchase, or nonresidential lease agreement or similar instrument within how many days of the date of execution by placing the broker's initials and date of review on the same instrument on the same page as the signatures of the parties? A) 10 B) 3 C) 6 D) 8

A) 10

Question #5 of 5 Question ID: 1415114 On a pre-prepared Arizona listing contract, which of these would be found with blanks to be filled in? A) A comprehensive and accurate legal description B) Broker hold harmless clauses C) Requirements for mediation in disputes D) The roles of the seller and brokerage in marketing the property

A) A comprehensive and accurate legal description

Question #5 of 5 Question ID: 1415093 Which of these is a voluntary personal service relationship in which one party delegates authority to another and the designated other party accepts that authority? A) Agency B) Executed contract C) Oral contract D) Executory

A) Agency

Question #1 of 5 Question ID: 1415081 When today's contracts are revised by experts, who can licensees often turn to for training on the revised forms? A) All of these B) Professional real estate associations C) Real estate brokerages D) Licensing schools

A) All of these

Question #1 of 5 Question ID: 1415124 Which of these must a purchase contract include? A) All of these B) Full purchase price C) Amounts of cash and loan contribution D) Earnest money

A) All of these

Question #3 of 5 Question ID: 1415111 Exclusive agency is MOST often used in which type of transaction? A) Commercial sales B) Residential sales C) Cooperative sales D) Condominium sales

A) Commercial sales

Question #2 of 5 Question ID: 1415155 Which fiduciary duty lasts forever? A) Confidentiality B) Obedience C) Reasonable care D) Loyalty

A) Confidentiality

Question #3 of 5 Question ID: 1415145 Which of these is the BEST way to resolve contract disputes? A) Reasonable communication between principals B) Alternative dispute resolution C) Arbitration D) Court

A) Reasonable communication between principals

Question #4 of 5 Question ID: 1415134 Which law in Arizona helps protect both landlord and tenant rights and responsibilities? A) The Arizona Residential Landlord and Tenant Act B) The Arizona Tenant Rights Law C) The Arizona Rental Act D) The Arizona Leasing Law

A) The Arizona Residential Landlord and Tenant Act

Question #2 of 5 Question ID: 1415117 Future changes to a fully executed purchase contract are found on A) an addendum form. B) a revised contract form. C) a multiple offer form. D) a counteroffer form.

A) an addendum form.

Question #4 of 5 Question ID: 1415069 The Arizona form often used to show modifications to a real estate contract is A) an addendum form. B) an "as is" form. C) a counteroffer form. D) a real estate disclosure and election form.

A) an addendum form.

Question #4 of 5 Question ID: 1415099 Dual agency exists when one licensee represents buyers and sellers individually in one transaction, or when A) buyers and sellers are represented by licensees in the same brokerage. B) a seller is unrepresented. C) a brokerage handles both the real estate transaction and the loan. D) a buyer or seller employs two or more licensees from different brokerages.

A) buyers and sellers are represented by licensees in the same brokerage.

Question #3 of 5 Question ID: 1415108 An acceptable, effective listing agreement will include A) disposition of personal property. B) details of the sellers' financial situation. C) name and location of the sellers' lender. D) name of the title company selected for the transaction.

A) disposition of personal property.

Question #2 of 5 Question ID: 1415087 With regard to real estate representation in Arizona, state law A) does not require any paperwork to represent a principal. B) requires all real estate contract to be in writing. C) requires employment agreements between brokerages and principals. D) states that real estate professionals may not work with principals with only an agency relationship.

A) does not require any paperwork to represent a principal.

Question #5 of 5 Question ID: 1415102 In Arizona, informed consent of both buyers and sellers is required for A) dual agency. B) seller agency. C) buyer agency. D) single agency.

A) dual agency.

Question #1 of 5 Question ID: 1415094 Once all counteroffers, deletions, modifications, and terms have been accepted by all parties to the contract, it is considered A) executed. B) expressed. C) executory. D) formal.

A) executed.

Question #1 of 5 Question ID: 1415106 On contracts requiring a legal description, that description must be A) fully accurate and complete. B) lot, block, and tract. C) metes and bounds. D) as short as possible.

A) fully accurate and complete.

Question #1 of 5 Question ID: 1415153 Before beginning to write contracts on behalf of a brokerage or client, it must be stated, disclosed, and discussed that the salesperson or broker has a state real estate license and is acting as a principal if the purchaser or seller is a member of the licensee's or designated broker's A) immediate family. B) any family whatsoever, including by marriage. C) immediate or extended family. D) none of these.

A) immediate family.

Question #3 of 5 Question ID: 1415148 Immediate family relationships between licensees and clients in real estate transactions is A) must be disclosed in Arizona. B) are not required to be disclosed in Arizona. C) only require disclosure for married couples in Arizona. D) are only required in listing agreements in Arizona.

A) must be disclosed in Arizona.

Question #3 of 5 Question ID: 1415078 The party to whom an offer is presented is the A) offeree. B) optionor. C) optionee. D) offeror.

A) offeree.

Question #5 of 5 Question ID: 1415110 Permission to use marketing tools found in listing agreements include permission to use A) yard signs. B) sellers' motivation to sell. C) names of repair specialists. D) the name of the salesperson.

A) yard signs.

Question #5 of 5 Question ID: 1415090 A formal contract is one which has been A) sent to a notary public for recordation. B) drafted but unsigned. C) signed, sealed, and delivered. D) approved by a broker.

C) signed, sealed, and delivered.

Question #5 of 5 Question ID: 1415120 In providing information on the title company selected for the transaction, it is not recommended that you include A) the title company's fax number. B) the title company's email address. C) the name of the title officer. D) its address.

C) the name of the title officer.

Question #5 of 5 Question ID: 1415123 Arizona real estate contract writers generally include A) the name of the title/escrow company to handle the transaction and the name of the title officer. B) the name and contact information of the title/escrow company and the name of the title officer to handle the transaction. C) the name of the title/escrow company to handle the transaction. D) the name of the title officer but not the title/escrow company to handle the transaction.

C) the name of the title/escrow company to handle the transaction.

Question #1 of 5 Question ID: 1415086 The word "expressed" in contract writing means A) oral contracts only. B) implied actions. C) using words. D) written contracts only.

C) using words.

Question #5 of 5 Question ID: 1415130 Which of the following is NOT required in a lease? A) The names of the tenant(s) B) Costs to tenants including deposits and fees C) Key distribution D) A full legal description

D) A full legal description

Question #1 of 5 Question ID: 1415076 It is the responsibility of Arizona real estate licensee/contract writers to encourage clients to seek the advice of which of the following when entering into a contract to purchase real property? A) At least three competitive real estate brokers B) Mortgage lenders and mortgage bankers C) Friends and relatives D) Attorneys, financial planners, and tax advisers

D) Attorneys, financial planners, and tax advisers

Question #4 of 5 Question ID: 1415092 Which of these is a contract that binds two or more parties? A) Implied contract B) Unilateral contract C) Expressed contract D) Bilateral contract

D) Bilateral contract

Question #4 of 5 Question ID: 1415149 Which of the following is NOT an agency fiduciary duty in Arizona? A) Obedience B) Loyalty C) Disclosure D) Courtesy

D) Courtesy

Question #2 of 5 Question ID: 1415107 Which of the following legal descriptions are accepted in a court of law? A) A high-altitude photo taken by a drone B) Assessors' parcel numbers C) Street addresses D) Government rectangular survey

D) Government rectangular survey

Question #3 of 5 Question ID: 1415095 Which of these is a contract that is not a contract of record or under seal? A) Executory B) Executed C) Formal D) Informal

D) Informal

Question #1 of 5 Question ID: 1415115 Which statement if TRUE regarding a listing contract? A) A property address, including city and zip code is adequate legal desciption. B) The term of the listing is considered boilerplate. C) Brokerages are required to use the AAR template listing contract. D) It must include an itemized list of personal property to convey or not convey with the sale of the real property.

D) It must include an itemized list of personal property to convey or not convey with the sale of the real property.

Question #5 of 5 Question ID: 1415082 How many required elements are there for contracts to be valid in Arizona? A) 4 B) 5 C) 6 D) 3

C) 6

Question #1 of 5 Question ID: 1415056 Article 26 requires all Arizona real estate licensees to do which of the following in their contract writing efforts? A) Only fill out property addresses and names of principals B) Have at least nine hours of college credit in pre-law C) Act as a broker or salesperson representing one or both parties in a transaction D) Charge clients extra for contract writing services

C) Act as a broker or salesperson representing one or both parties in a transaction

Question #4 of 5 Question ID: 1415143 In cases of default, breaches, and failure to complete the purchase, principals in an Arizona real estate transaction may exercise which method of recourse? A) Nonbreaching party may force buyer to complete the transaction B) Nonbreaching party may keep the earnest deposit C) All of these D) Nonbreaching party may sue for money damages

C) All of these

Question #3 of 5 Question ID: 1415098 That clients understand how they are being represented by their selected brokerages is a requirement of A) good real estate practice. B) most brokerages. C) Arizona state law. D) the Realtor® code of ethics.

C) Arizona state law.

Question #1 of 5 Question ID: 1415141 For real property purchase agreements, when the home, land, or business has transferred successfully from grantor to grantee, which of these has occurred? A) Default B) Contract has been voided C) Completion of purpose D) Contract is executory

C) Completion of purpose

Question #4 of 5 Question ID: 1415151 According to Arizona rules and regulations, who is responsible for the supervision of all contract preparation, accuracy, and maintenance? A) Salespeople B) Contract coordinators C) Designated brokers D) Arizona Department of Real Estate

C) Designated brokers

Question #4 of 5 Question ID: 1415122 Which of these must happen first when a buyer wishes to exchange purchase money for clear title? A) Counteroffer B) Clearing the financing C) Offer and acceptance D) Choosing a title company

C) Offer and acceptance

Question #4 of 5 Question ID: 1415101 Which of these is a basic hire document between the brokerage and licensees? A) Agency documents B) Representation agreement C) Office policy manual D) Formal documents

C) Office policy manual

Question #3 of 5 Question ID: 1415088 Which of the following is MOST likely to be a unilateral contract? A) Residential resale purchase contracts B) One between brokerages and real property sellers C) Option contracts D) Independent contractor agreements

C) Option contracts

Question #3 of 5 Question ID: 1415084 What is the term used to describe when something of value is being offered in exchange for something else? A) Capacity B) Voluntary alienation C) Valuable consideration D) Offer and acceptance

C) Valuable consideration

Question #3 of 5 Question ID: 1415118 If a required legal description is too long to fit in the space allotted on a contract form, the legal description can be A) indicated as lengthy, to be provided in escrow. B) replaced by a shorter type of description. C) an addendum to the contract. D) edited and shortened by the licensee/contract writer.

C) an addendum to the contract.

Question #2 of 5 Question ID: 1415091 Using words to make a contractual agreement, either orally or in writing is A) an implied contract. B) a void contract. C) an expressed contract. D) a unilateral contract.

C) an expressed contract.

Question #2 of 5 Question ID: 1415085 Those with the capacity to enter into a contract are called A) third parties. B) minors. C) competent parties. D) offerors.

C) competent parties.

Question #4 of 5 Question ID: 1415139 Elements of contracts that must be met or cleared before a contract can be enforced are called A) provisions. B) boilerplate. C) contingencies. D) regulations.

C) contingencies.

Question #2 of 5 Question ID: 1415137 An example of a breach of a purchase contract is A) failure of a property to appraise. B) lender cancellation of a loan program. C) failure to close without a legal excuse. D) All of these.

C) failure to close without a legal excuse.

Question #1 of 5 Question ID: 1415132 In a lease agreement, the lessor is the A) real estate professional. B) renter. C) landlord/owner. D) tenant.

C) landlord/owner.

Question #3 of 5 Question ID: 1415138 To be canceled without a breach, an action must have a A) hold harmless clause. B) cure notice. C) legal excuse. D) waiver of damages.

C) legal excuse.

Question #1 of 5 Question ID: 1415136 A key factor in successful dispute resolution is A) lack of communication between the parties. B) strong negotiating skills. C) motivation of the buyer to buy and the seller to sell. D) aggressive lawyers.

C) motivation of the buyer to buy and the seller to sell.

Question #2 of 5 Question ID: 1415133 Those who are under the age of majority, unless emancipated, will be shown on a lease as A) tenants. B) minors. C) occupants. D) renters.

C) occupants.

Question #3 of 5 Question ID: 1415128 Persons under the age of majority may not be tenants because they cannot legally sign contracts, but they may be shown on lease agreements as A) dependents. B) sublessees. C) occupants. D) sublessors.

C) occupants.

Question #3 of 5 Question ID: 1415068 A contract shorthand used to describe a longer description is to put a key word in A) italic type. B) underlined type. C) parentheses and quotation marks. D) bold type.

C) parentheses and quotation marks.

Question #1 of 5 Question ID: 1415096 In addition to asking licensees to agree to and sign office policy manuals and independent contracts, many brokerages today require separate signatures on policies regarding A) noncompete policies. B) office space. C) sexual harassment. D) commission splits.

C) sexual harassment.

Question #3 of 5 Question ID: 1415105 Which statement regarding brokerage representation is TRUE? A) Salespeople are not required to explain brokerage representation to their clients. B) Clients must consult an attorney regarding brokerage representation. C) Clients must educate themselves about brokerage relationships before meeting with a salesperson. D) Salespeople must explain to clients how they are being represented by the brokerage.

D) Salespeople must explain to clients how they are being represented by the brokerage.

Question #4 of 5 Question ID: 1415109 Who determines the price to be included on a listing agreement? A) The salesperson/licensee B) The buyer(s) C) The designated broker D) The seller(s)

D) The seller(s)

Question #5 of 5 Question ID: 1415131 Sara is renting an apartment using a legally binding contract called A) a rental contract. B) a purchase contract. C) a rental application. D) a lease.

D) a lease.

Question #2 of 5 Question ID: 1415057 New Arizona real estate licensees must successfully complete an Introduction to Contract Writing class before A) being allowed to take the state licensing exam. B) completing a six-week internship program. C) completing the requirements of a 90-hour salesperson prelicensing course. D) activating their licenses.

D) activating their licenses.

Question #2 of 5 Question ID: 1415067 In a contract form, lines are numbered line-for-line in order to A) keep readers from getting lost in the document. B) group various topics in the contract together. C) know the length of the contract form. D) allow contract writers to refer to parts and sections of the contract by line numbers.

D) allow contract writers to refer to parts and sections of the contract by line numbers.

Question #2 of 5 Question ID: 1415112 Pre-prepared items such as anti-trust and non-discrimination information found in a listing agreement template are called A) personal property conveyance. B) exclusive authorization. C) addenda. D) boilerplate.

D) boilerplate.

Question #4 of 5 Question ID: 1415059 Brokers who work in contract and statutory law areas must take nine credit hours in A) classes in mediation and arbitration. B) introduction to contract writing classes. C) university-level law classes. D) broker management clinics.

D) broker management clinics.

Question #1 of 5 Question ID: 1415116 For buyers, a purchase contract may be looked upon as a A) buyer-broker agreement. B) contract that may or may not be valid. C) listing for the buyer. D) dream sheet.

D) dream sheet.

Question #1 of 5 Question ID: 1415126 Parties to a lease are the A) vendor and vendee. B) optionor and optionee. C) grantor and grantee. D) lessor and lessee.

D) lessor and lessee.

Question #4 of 5 Question ID: 1415079 An example of good consideration is A) purchase money. B) rent. C) other real property in trade. D) real property as a gift.

D) real property as a gift.

Question #2 of 5 Question ID: 1415147 The ADRE requires mandated transaction files to be kept in A) climate-controlled file cabinets. B) a secure off-site facility. C) a locked safe. D) the main brokerage office unless otherwise approved by the department.

D) the main brokerage office unless otherwise approved by the department.

Question #2 of 5 Question ID: 1415121 In a voluntary transfer of real property in Arizona, the guiding document is A) the listing contract. B) the seller disclosure of material facts. C) the financing addendum. D) the purchase contract.

D) the purchase contract.

Question #4 of 5 Question ID: 1415119 All-cash purchase offers must include A) a statement pledging additional collateral. B) a Uniform Commercial Code filing. C) a sizable down payment. D) the source of the cash or financial institution guarantee.

D) the source of the cash or financial institution guarantee.