chapter 10 part 2
If unforeseen delays in settlement or closing occur and the delaying party notifies the other party in writing, how long is the automatic extension period as provided in the Offer to Purchase Vacant Lot/Land contract? A.14 days. B.10 days. C.30 days. D.There is no automatic extension period. The parties must agree separately to any such extension.
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Item 14 of this contract addresses tax-free exchanges. Who does the contract state is responsible for additional costs related to a tax-free exchange? A.The exchanging party. B.The buyer. C.The seller. D.The non-exchanging party.
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What happens at the end of the installment term, after the buyer has made all payments? A.The seller records a deed to transfer legal title to the buyer. B.The seller records a deed to transfer equitable title to the buyer. C.The seller records a deed to transfer both equitable and legal title to the buyer. D.The buyer records a deed to transfer legal title to the seller.
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What happens if a right of first refusal is triggered by the owner receiving another offer, but the holder does not exercise the right before the time period to do so expires? A.The holder of the right loses the opportunity to exercise the right and the property owner can accept any offer they want to accept. B..The rights duration is automatically extended for 24 hours. C.The rights duration is automatically extended by 48 hours. D.Rights of first refusal do not have a limited duration.
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What is an acceptable way to handle earnest money and due diligence fees paid with the sales contract? A.Place the funds in trust or in an escrow account until closing. B.Place the funds in the brokerage's operating account until settlement. C.Deposit the funds in an account the licensee sets up with their bank, titled "client escrow," until closing. D.Put the client's cash payment in a lockbox at the real estate office until settlement.
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An Installment Land Contract is: A.Seller financing. B.FHA financing through HUD. C.VA financing through the Department of Veterans Affairs. D.A type of traditional mortgage company financing option.
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Are all of the provisions included in the standard NC OPC form required to form a valid contract? A.No. The OPC includes required provisions plus additional terms and conditions designed to protect both the buyer and the seller. B.Yes. Licensees must use the OPC or another form including all of the provisions contained in the OPC. C.Yes. Licensees must either use the OPC or draft their own contracts for clients that include all of the same provisions. D.No. There are no required provisions for a real estate contract.
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Are verbal offers or counteroffers legally valid in North Carolina? A.No. In North Carolina, offers must be in writing to be legally enforceable. B.Yes, if the verbal offer or counteroffer is made and accepted in the presence of the closing attorney. C.Yes. In North Carolina, verbal offers or counteroffers are legally valid. D.It depends on the value of the underlying property. Verbal offers for sales with purchase prices of less than $100,000 are legally valid.
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Buyers are usually responsible for paying certain expenses during the term of the contract. Which of these is an expense that the seller, not the buyer, typically pays? A.Personal property insurance for the seller's property maintained on-site but not included in the sale. B.Real estate taxes. C.Special assessments. D.Homeowners' association dues.
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Can the "Offer to Purchase Vacant Lot/Land" contract be made contingent on the buyer's ability to obtain financing? A.No, purchases using this form are not contingent on loan approval. B.Yes, purchases using this form are assumed to be contingent on the buyer's ability to obtain financing. C.Yes. The parties can indicate on the contract whether the purchase is contingent on loan approval. D.No. Purchases under this contract form must be in cash.
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Closing costs for Installment Land Contracts are often lower than for transactions using traditional financing. Which of these is NOT a reason why closing costs would be lower? A.The parties agree to prorate real estate taxes. B.The parties negotiate the contract on their own without paying an attorney to help them. C.The parties forego title reviews. D.The parties agree they do not need a survey.
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During the term of the Installment Land Contract, who holds equitable title and who holds legal title to the property? A.The buyer takes equitable title and the seller holds legal title. B.The seller takes equitable title and the buyer holds legal title. C.The buyer takes both equitable and legal title. D.The seller takes both equitable and legal title.
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How could a tenant benefit from having a right of first opportunity? A.Rights of first opportunity can protect tenants who are leasing space from changes in ownership that could impact their tenancy. B.Rights of first opportunity give tenants the right to evaluate and vote against new owners of the buildings they lease. C.Rights of first opportunity do not offer any potential benefits for tenants. D.Tenants may hold rights of first refusal, but not rights of first opportunity.
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How does an option holder exercise their rights under an options contract? A.By notifying the property owner of their intention to exercise their rights under the contract. B.By entering into a secondary options contract. C.By signing a leaseback agreement with the property owner. D.By notifying the property owner of their intention to let the options contract expire.
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How is a right of first opportunity to purchase different from a right of first refusal? A.With a right of first opportunity to purchase, the holder has the first right to make an offer when notified that the seller intends to sell their property. With a right of first refusal, the holder instead has the right to match a third party's offer. B.With a right of first refusal, the holder has the first right to make an offer when notified that the seller intends to sell their property. With a right of first opportunity to purchase, the holder instead has the right to match a third party's offer. C.Right of first opportunity and right of first refusal are different names for the same preemptive right. D.The right of first opportunity gives the holder an equitable interest in the property.
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How is an option to purchase real estate different from preemptive rights? A.With preemptive rights, the holder cannot exercise their rights until and unless the property owner decides to sell. B.With an option to purchase real estate, the option holder cannot exercise their rights until and unless the property owner decides to sell. C.With preemptive rights, the holder can force a sale even if the property owner doesn't want to sell. D.With an option to purchase real estate, the option holder is legally obligated to purchase the property if the owner decides to sell.
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How long do brokers have to present their clients with required documents under the delivery of instruments rule, North Carolina real estate commission rule A.0106(a)? A.three days B.one day C.five days D.ten days
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How many days do brokers have to deposit a client's earnest money into a trust or escrow account? A.no later than three days after acceptance of the offer to purchase or lease property B.no later than five days after acceptance of the offer to purchase or lease property C.no later than three days after the buyer submits the offer to purchase or lease property regardless of whether the seller has accepted it D.no later than five days after the buyer submits the offer to purchase or lease property regardless of whether the seller has accepted it.
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How would a client accept proposed contract modifications or counteroffers? A.By initialing the changes on the contract form and signing and dating to indicate their acceptance. B.Verbally, either in person or over the phone. C.By telling their agent they have decided to accept. D.The parties must complete and sign a new OPC with the new terms.
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If the parties agree that the seller will make additional improvements to the property before settlement, who is responsible for paying for such improvements? A.The seller. B.The buyer. C.The parties cannot agree on additional improvements when they use this form, as it is for completed construction. D.The parties must negotiate and document who will pay for agreed-upon improvements.
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If there are unforeseen delays that prevent the seller from completing agreed-upon minor improvements by settlement, what happens? A.The time for completion will be extended if the seller notifies the buyer of the delay within five days. B.The sales contract is automatically cancelled. C.The time for completion will be extended if the seller notifies the buyer of the delay within fifteen days. D.The seller will be deemed to be in breach of the contract. There is no provision for extending the time for completion.
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May a buyer withdraw a submitted offer before the offer expiration date when the seller has not taken any action on it? A.Yes. A buyer can withdraw a pending offer that has not been accepted by the seller, even if the deadline for the seller's response has not yet passed. B.No. The buyer must wait for the seller's deadline to respond to pass. C.Yes. A buyer can withdraw an open offer, but only if the time for the seller to respond is more than 24 hours away. D.Yes. A buyer can withdraw an open offer, but only if the time for the seller to respond is less than 24 hours away.
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May agents point out information about offers they believe their clients should consider? A.Yes. An agent should point out information that he believes may be advantageous or disadvantageous. B.No. Agents may not draw clients' attention to specific information contained in offers received. C.Yes, if the client has signed a separate addendum authorizing to do so. D.No. Agents who point out specific information in an offer are, in effect, making independent decisions for their clients.
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Must a broker notify their client about a new offer when there is already a pending offer? A.Yes. Brokers must present clients with all offers received even if there is already a pending offer. B.Brokers have discretion about whether to present clients with new offers when there is already a pending offer. C.No. If there is a pending offer already the broker is not required to present the client with new offers received. D.No. Real estate commission rules prohibit brokers from presenting clients with new offers when the client has already accepted an offer.
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Potential benefits to buyers of using Installment Land Contracts include all of the following EXCEPT: A.Higher interest rates. B.Buy "more house" for the money. C.Home ownership is more attainable for a buyer with bad credit. D.Fast closing and occupancy.
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Rich has a right of first refusal and Oscar has a right of first opportunity. Whose right gives them more control? A.Oscar. When notified that the property owner wants to sell, he can be the first to make an offer. Rich cannot make an offer until a third-party has already done so and then, he can only offer to match that third party offer. B.Rich. When notified that the property owner wants to sell, he can be the first to make an offer. Oscar cannot make an offer until a third-party has already done so and then, he can only offer to match that third party offer. C.Neither Rich nor Oscar has more control than the other. D.Right of first refusal and right of first opportunity are different names for the same preemptive right.
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The New Construction Addendum allows for a "building deposit." What is a building deposit? A.A deposit for the construction of agreed-upon additional improvements. This is non-refundable if the buyer cancels the contract. B.Additional earnest money. C.A due diligence fee. D.A deposit for the construction of agreed-upon additional improvements. This is refundable if the buyer cancels the contract.
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The seller agrees in item 6(b) of the New Construction Addendum to provide the buyer with all guarantees and warranties for individual components of the home, when such warranties are assignable. Who is responsible for providing notice of assignment? A.The buyer. B.The seller. C.The product manufacturer. D.The seller's agent.
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There are certain exceptions to the three-day delivery requirement under the delivery of instruments rule. Which of these situations describes a valid exception? A.The broker has a separate written agreement with the property owner to enter into. He must retain copies of leases or rental agreements on the property owner's behalf, where the agreement is executed on a preprinted form and the broker delivers an accounting to the property owner within 45 days. B.The client told his broker he does not want copies of documents. C.The broker believes her client does not want copies of documents. D.A broker has a separate written agreement with a seller stating that the client authorizes the broker to take up to five days to deliver required documents.
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Traditionally, real estate contracts were always made and signed on paper. Is that still the case? A.No. Unless the contract limits or specifies the way offer and acceptance can be made, it is acceptable to create a contract through electronic means. B.No. It is always acceptable to use electronic means to create real estate contracts. C.Yes. Real estate agreements must be signed on paper using ink in order to be valid and enforceable. D.Yes. Real estate contracts must be signed on paper using ink, but addenda may be completed electronically.
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Under this contract, which of these fees is NOT typically the buyer's responsibility? A.Confirmed special assessments. B.Owners' association charges for future use. C.Title search and title insurance fees. D.If applicable, the recording fees for the deed and mortgage.
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Under which circumstances might the agreed-upon purchase price for the property in an options contract vary? A.An options contract that extends over a period of years might include a provision allowing for adjustments to be made to the purchase price based on inflation, or it could specify that the price will depend on a new appraisal conducted when the holder is ready to exercise the option to buy. B.The purchase price is always variable. C.The purchase price is always fixed. D.The purchase price is always tied to the appraised value at the time the option holder decides to exercise the contract.
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What do NC real estate commission rules say about a broker accepting a check payable to the seller? A.A broker may accept checks made payable to the seller for due diligence fees but only for the limited purpose of delivering the checks to the seller. B.Brokers may never accept checks made payable to the seller. C.A broker cannot hold onto a due diligence payment check for more than ten days after acceptance of the sales contract. D.If a broker is in possession of a check made payable to the seller, the broker can use their own discretion to decide to either return it to the buyer or give it to the seller.
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What does it mean to "exercise" an options contract? A.The option holder notifies the property owner that they intend to purchase the property under the terms the parties agreed to in the options contract. B.The property owner notifies the option holder that they are cancelling the options contract. C.The option holder notifies the property owner that they want to extend the term of the option agreement. D.The property owner notifies the option holder that they have sold the property to another buyer during the term of the option contract.
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What is an option to purchase real estate? A.A legally-binding contract between two parties that gives the option holder the exclusive right to buy the owner's real estate property for a pre-defined price during a specified period. B.A non-binding contract between two parties, giving the option holder the exclusive right to buy the owner's real estate property for a pre-defined price during a specified period. C.A legally-binding contract between two parties, giving the option holder a non-exclusive right to buy the owner's real estate property for an undefined price during a specified period. D.A non-binding contract between two parties that gives the option holder the exclusive right to buy the owner's real estate property for an undefined price for an indefinite period.
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What is another common name for the right of first opportunity to purchase? A.Right of first offer. B.Right of first refusal. C.Option to purchase. D.Purchase agreement right.
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What is one benefit of using the standard, preprinted real estate contracts and addenda prepared by NC REALTORS and the North Carolina Bar Association? A.The forms are formatted to include clear spaces for the parties to sign and date where required and are designed to be user-friendly. B.The forms are guaranteed to be legally valid. C.The forms are available to everyone, free of charge. D.Once downloaded the forms are guaranteed forever and never need to be updated.
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What is one important difference between preemptive rights and options to purchase real estate? A.An option to purchase real estate gives the holder an equitable interest in the property. B.A preemptive right gives the holder an equitable interest in the property. C.A preemptive right gives the holder the right to force a sale. D.An option to purchase may only be exercised if the property owner decides to sell during the option term.
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What is the "consideration" in an options contract? A.The price the option holder pays for the contract, which gives them the right to purchase the piece of real estate. B.The purchase price for the real estate property as defined in the options contract. C.There is no consideration in an options contract. D.The due diligence fee the option holder pays when exercising their right to purchase the property.
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What is the effective date for the Offer to Purchase Vacant Lot/Land contract? A.The date on which the last of the parties signs or initials the final offer or counteroffer and that the signing or initialing has been communicated to the other party. B.The date the due diligence period ends. C.The effective date is the same date as the settlement date. D.One day after the last of the parties signs or initials the final offer or counteroffer and the signing or initialing has been communicated to the other party.
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What is the term for the contractual right to match another offer received by a property owner who has decided to sell their property? A.Right of first refusal. B.Right of first opportunity to purchase. C.Option to purchase. D.Right of matching.
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What right does a right of first refusal provide to the holder? A.The option of matching a third party's offer to purchase the property owner's real estate (or to refuse to do so). B.The option of buying the property owner's real estate at a discount from a purchase offer made by a third party. C.The first opportunity to buy the property if the owner decides to sell. D.The right to refuse rent increases levied by the property owner or a new owner after the property is sold.
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What type of agreements are real estate contracts? A.Bilateral agreements B.Unilateral agreements C.Non-binding agreements D.Implied agreements
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What type of ownership interest does an option to purchase real estate give the option holder? A.An equitable interest. B.A legal interest. C.Options don't give holders any ownership interests. D.An unequitable interest.
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When a seller makes a counteroffer, is there automatically a valid agreement between the parties? A.No. A counteroffer is, in effect, a rejection and a new offer. The buyer can choose to accept the counteroffer or make a counteroffer of their own. B.Yes. A valid agreement is formed when the seller signs the counteroffer and delivers it to the buyer. The buyer's signature is not needed. C.No. A counteroffer means the parties must start over again with the buyer preparing a new OPC form and delivering it to the seller who can choose to accept or reject it. D.The parties automatically have a valid agreement three days after the seller submits a counteroffer to the buyer if the buyer has not accepted or rejected the counteroffer by that point.
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When a seller signs this agreement, what type of deed do they promise to deliver to the buyer by the settlement date? A.A general warranty deed. B.A deed of trust. C.A quit claim deed. D.A limited warranty deed.
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When signing this contract, the seller agrees to provide certain information. Which of these statements is NOT information that the seller is obligated to provide under the contract? A.Loan payment history. B.Evidence of title. C.Written payoff statement of the seller's loan. D.A non-foreign status affidavit.
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When would you use the New Construction Addendum, Standard Form 2A3-T? A.The seller built a "spec" single-family home or townhome on property the seller owns or will own. B.The seller built a condominium on property the seller owns or will own. C.The seller owns property that would be perfect for a new construction single-family home. D.The seller began construction on a townhome on property the seller owns or will own but decided to sell when construction was only one-quarter complete.
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Which has a longer duration, a right of first refusal or a right of first opportunity? A.Preemptive rights are negotiated between the parties. The durations and time periods for exercising preemptive rights will differ from one contract to another. B.Right of first refusal. C.Right of first opportunity and right of first refusal are different names for the same preemptive right. D.The time periods are the same for both types of rights, and are determined by state law.
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Who is responsible for paying real estate taxes, rents, and dues? A.Unless agreed upon otherwise, the seller is responsible for these expenses through closing, at which point the buyer becomes responsible. B.Unless agreed to otherwise, the buyer is responsible for these expenses from the effective date of this contract. C.Unless agreed upon otherwise, the seller is responsible for these fees until 10 days after closing. D.In the contract, the parties must agree who will bear the responsibility for these expenses.
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Which of the following is NOT a true statement about the limited warranty of construction described in the New Construction Addendum? A.The limited warranty of construction is good for two years from the date of closing or from the date the buyer occupies the property, whichever comes first. B.This limited warranty covers all necessary repairs and corrections to either the interior or exterior of the home, structural or nonstructural, if they become necessary due to faulty construction, labor, materials, or non-conformity of construction to the plans and specifications. C.The limited warranty is provided to the named buyer only and cannot be assigned to someone else. D.If there are other warranties in place, this warranty is in addition to those and not in replacement of them.
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Which of the following is NOT likely to be a reason a buyer would consider using an Installment Land Contract? A.More protection if the loan goes to foreclosure. B.The buyer was turned down for a traditional mortgage because of a poor credit history. C.The buyer wants to buy property that traditional lenders do not want to finance. D.Reduced closing costs.
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Which of the following is a true statement about earnest money paid in cash? A.If earnest money is paid in cash the broker must immediately deposit it into the trust or escrow account. B.If earnest money is paid in cash the broker must deposit it into the trust or escrow account within one business day of receipt. C.If earnest money is paid in cash the broker must deposit it into the trust or escrow account within three business days of receipt. D.Brokers may never accept cash payments for earnest money.
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Which of the following is not a true statement about due diligence fees paid by the buyer? A.If the buyer cancels the contract during the due diligence period they are entitled to a return of their due diligence fees. B.Due diligence fees are funds payable to the seller as consideration, giving the buyer the right to conduct due diligence and inspections during the due diligence period. C.If the buyer cancels the contract during the due diligence period they are entitled to a return of their earnest money but not their due diligence fees. D.When paid with a real estate contract due diligence fees must be held in trust or escrow as they are the client's funds.
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Which of the following is not a type of investigation a buyer might complete when purchasing property using the Offer to Purchase Vacant Lot/Land form? A.Mold and mildew inspection. B.Zoning and government regulations. C.Flood hazard risk. D.Utilities and access.
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Which of the following statements about equitable and legal title under an Installment Land Contract is true? A.The buyer's equitable title serves to protect them, prohibiting the seller from turning around and selling the property to someone else during the term of the contract. B.The seller's equitable title protects them from a buyer who could otherwise sell the property to someone else during the term of the contract. C.The split of equitable and legal title simplifies things if there is a property-related lawsuit or the need to file an insurance claim during the contract term. D.The buyer and seller share equitable title during the term of the contract, protecting both parties in case the other party wanted to sell to someone else.
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Which of the following terms is another common name for an Installment Land Contract? A.Contract for Deed. B.Deed of Trust. C.Short Sale. D.FHA Financing.
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Which of the following types of information should NOT be captured in the insulation chart included in the New Construction Addendum as item 7? A.Insulation manufacture date. B.Type of insulation used. C.Insulation thickness. D.R-value.
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Which of the following would be most likely to have a right of first refusal on a commercial property? A.Long-term large business tenant. B.Small business considering leasing office space. C.A competitor of the largest business tenant leasing space from the property owner. D.The property owner's third cousin, twice removed.
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Which of these documents would not be covered by the delivery of instruments rule? A.inspection reports B.agency agreements C.leases D.contracts
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Which of these is NOT a characteristic of rights of first refusal? A.Springing right, triggered when the property owner decides to sell. B.Springing right, triggered when the property owner receives another offer. C.When triggered, the right is exercisable for a limited duration. D.No equitable interest in the underlying property.
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Which of these is NOT a common element included in Installment Land Contracts? A.The buyer's credit score. B.The amount of the periodic payments the buyer agrees to make. C.Each party's rights if the other party defaults on their obligations. D.The interest rate percentage.
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Which of these is NOT a potential benefit to the seller of using an Installment Land Contract? A.Access to lump-sum sales proceeds at closing. B.Lower closing costs. C.Sell the property quickly on favorable terms. D.Create a regular revenue stream.
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Which of these is NOT a statement or certification the seller makes on the New Construction Addendum? A.The seller or their General Contractor will begin construction after closing. B.The seller or their General Contractor has completed construction of a dwelling and related improvements. C.The seller or their General Contractor was appropriately licensed. D.The seller will provide the buyer with a Certificate of Occupancy no later than at Settlement for the transaction.
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Which of these is NOT included when completing item 1(d) of the agreement (purchase price)? A.Survey fee. B.Due diligence fee. C.Earnest money. D.Seller financing amount.
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Which of these is a potential risk buyers should know about before signing an Installment Land Contract? A.Buyers typically do not have the foreclosure protection available when the property is financed using a mortgage or deed of trust. B.Potential tax advantages for sellers. C.Lower down payment requirement. D.Quick time to close and take possession of the home.
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Which of these is a true statement regarding Installment Land Contracts? A.The agreement may provide for monthly installments for a period of years, followed by a balloon payment at the end. B.The contract terms and provisions are always clear and unambiguous. C.Real estate agents may draft Installment Land Contracts without involving attorneys, since these are not typical real estate sales contracts. D.If a buyer is approved for a traditional mortgage loan but the seller offers an Installment Land Contract, the buyer should always take the Installment Land Contract.
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Which of these is a true statement regarding the buyer's right to inspect the property under the New Construction Addendum? A.The buyer or their representative has the right to enter the property to inspect additional minor improvements at reasonable times to determine whether the work conforms to the terms of this contract, as long as their doing so does not impact or otherwise interfere with construction. B.The buyer does not have the right to conduct inspections when using this Addendum. C.Neither the buyer nor their representative has the right to enter the property to conduct inspections because doing so could interfere with construction. D.The buyer or their representative may enter the property for inspection purposes, but only if they first purchase an insurance policy to cover their liability.
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Which of these is not a common scenario for sellers and buyers to come to an agreement for a sale? A.Property is left in a mother's will to her adult son who decides to keep it after her death. B.A seller and buyer enter into an agreement through their respective real estate professionals. C.Neighbors come to an agreement for one of them to buy the other's property. D.A parent and child agree that one of them will purchase the other's home.
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Which of these is not a potential benefit of options contracts for the option holder? A.Can receive a refund on the option purchase price if the holder lets the option expire without exercising it. B.The option holder has more time to conduct due diligence on the property. C.If the market goes up, the option holder can exercise their right to purchase at a lower price. D.The holder is not obligated to buy the property but has an equitable interest in it for the term of the options contract.
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Which of these is not a potential downside for a property owner who enters into an options contract? A.The property owner gets to keep the amount paid for the options contract, whether the option holder exercises their rights or not. B.The property might not sell. C.The owner may be forced to sell at a lower price than they could otherwise get on the open market. D.The owner could be locked into a multi-year contract that prohibits them from selling the property to anyone other than the option holder.
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Which of these is not a reason licensees should understand preemptive rights? A.To draft preemptive rights agreements and tailor provisions to meet clients' needs. B.To be able to explain the differences to clients. C.To be able to recognize these rights when they appear in contracts. D.To differentiate between preemptive rights and options.
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Which of these is not a required element to form a legally-binding contract? A.Earnest money B.Offer C.Acceptance D.Legal capacity
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Which of these is not a right included with the buyer's equitable title during the term of the Installment Land Contract? A.Convey the property. B.Occupy the property. C.Enjoy the property. D.Use the property.
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Which of these is not a true statement regarding closing? A.The date when all required the documents are delivered to the closing attorney. B.The date that the legal transfer of title occurs. C.The date on which funds are disbursed to the buyer. D.Closing in North Carolina must be completed by a licensed attorney.
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Which of these is not an option available to the seller when an offer is received? A.Pend the offer indefinitely in the hopes of receiving a higher offer from someone else. B.Accept the offer C.Reject the offer D.Reject the offer and make a counteroffer
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Which of these is not one of the forms that options to purchase real estate can take? A.Vacation rental addendum. B.Standard purchase agreement. C.Rent-to-own arrangement in a residential lease agreement. D.Rent-to-own arrangement in a commercial lease agreement.
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Which of these items is NOT an acceptable way to identify the property subject to this agreement? A.A seller-provided map with the property outlined. B.The PIN or PID for the property. C.The lot or unit number, block or section number, and the subdivision or condominium name. D.A metes and bounds description prepared by a licensed attorney.
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Which of these remedies is not something that's contractually available to a buyer if the seller breaches the contract? A.Damages of three times the amount of the earnest money and due diligence fees paid. B.Terminate the contract without penalty. C.Due diligence fee refund. D.Earnest money refund.
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Which of these statements regarding foreclosure/eviction procedures under Installment Land Contracts is false? A.Buyers have greater protections because sellers must pursue their remedies as a matter of contract law and not foreclosure law. B.Sellers have the advantage because they pursue their remedies through contract law rather than foreclosure law. C.In some cases, sellers can evict buyers relatively quickly for non-payment. D.If a buyer is evicted due to non-payment, the seller is generally entitled to keep all installment payments made up to that point.
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Which of these would NOT be an offer to purchase property that would trigger a right of first refusal? A.A verbal offer made in a phone call. B.A signed purchase agreement. C.A letter of intent. D.A term sheet.
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Which statement regarding assessments is NOT accurate? A.The seller is responsible for paying for both the proposed and confirmed assessments. B.Proposed assessments are those under consideration but not yet approved. C.Confirmed assessments are those approved by the settlement date. D.Special assessments may include tax assessments or owners' association assessments.
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Which type of preemptive right would you have if the owner of the burdened real estate must notify you if they intend to sell their property, before they accept offers from other potential buyers? A.The right of first opportunity. B.The right of first refusal. C.An option to purchase the property. D.The right to enter into a contract.
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Who in a brokerage firm is responsible for real estate brokerage trust accounts? A.the firm's broker-in-charge B.the agent designated by the broker-in-charge C.the agent with the longest tenure at the firm D.Brokerage firms may not maintain real estate brokerage trust accounts. These must be maintained by escrow agents.
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Who is entitled to keep the interest earned on the earnest money while it's in an interest-bearing escrow account? A.The escrow agent. B.The buyer. C.The seller. D.The buyer and seller are each entitled to one-half of the interest earned.
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Why might a property owner enter into an option agreement that gives someone else the option to purchase their property? A.The property owner thinks the real estate market will go down, so the owner could make a profit. B.The property owner thinks the real estate market will go up, so they will make a profit. C.The property owner wants to make certain they will sell their property. D.The property owner doesn't want to sell their property under any circumstances.
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Why should the buyer be cautious about how much they put down as a building deposit? A.Although buyers are contractually entitled to a refund of the building deposit if there is a material breach of the contract, it may be difficult, time-consuming, and costly to actually get the deposit back from a seller who is unwilling or unable to voluntarily return it. B.Buyers are never entitled to a refund of their building deposit. C.Sellers may not accept offers with building deposits that are too low. D.Buyers may be outbid by someone with a higher building deposit, even if their offer price is lower.
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