Chapter 33

Buyer Mary's offer was accepted by seller Mike. During the process, the property was seized under condemnation. What is the status of the contract? a) The offer is terminated by operation of law. b) Condemnation is invalid by operation of law. c) The offers is still valid; however the seller is the party that issued the condemnation order. d) The buyer has 10 business days to withdraw the contract to avoid a legal penalty.

a) The offer is terminated by operation of law.

When does an offer become a contract? a) When the offer is accepted by the seller b) When the offer is signed by the buyer c) When the offer is given to the listing agent d) When the offer is given to the seller

a) When the offer is accepted by the seller

How does a seller inform a buyer of a term change on a submitted offer? a) A new listing agreement b) A contingency c) A counteroffer d) An amendment

c) A counteroffer

What document is used to change an already agreed upon contract? a) Writ b) Contingency c) Amendment d) Alteration

c) Amendment

How should a listing agent handle multiple offers? a) Submit only those offers to the client that come with good-faith money. b) Submit the best two offers to the client and disregard the remaining offers. c) Submit all offers to the client. d) Submit only the best offer to the client and disregard the remaining offers.

c) Submit all offers to the client.

In South Carolina, what is the process when a purchase offer is rejected by a seller without a counter-offer? a) A new listing agreement must be agreed upon between the agent and the seller. b) A rejection form must be completed and signed by the seller acknowledging that the offer was rejected without a counteroffer. c) The seller just allows the offer to terminate. d) The buyer must complete Form 67-B.

b) A rejection form must be completed and signed by the seller acknowledging that the offer was rejected without a counteroffer.

What is the document called that the buyer signs that includes such items as offering price, closing date, and other issues that is delivered to the seller or listing agent? a) A contract b) An offer c) A sales document d) A sales notice

b) An offer

What are the four requirements for an electronic signature to be valid? a) Intent, Content , Signature Association , Collected Records b) Intent, Consent , Signature Association , Appropriate Records c) Intent, Consent , Signature Association , Shared Records d) Intent, Consent , Signature Association , Saved Records

b) Intent, Consent , Signature Association , Appropriate Records

What is the best way to present the total living space of a property to a potential buyer? a) Guess on the square footage. b) Quote the square footage and the source of that number. c) Use previous MLS listing data. d) Use internet listing data.

b) Quote the square footage and the source of that number.

What is the status of an offer if the sellers fail to act on an offer and the time period to respond expires? a) The offer now becomes a contract. b) The offer expires. c) The offer is extended until the seller responds. d) The offer blocks any other possible offer being accepted unit the seller responds.

b) The offer expires.

If an offer is accepted and notice is given by USPS mail, when is the offer considered to be communicated? a) As it is placed in the mail b) When the buyer opens his or her acceptance document c) Two business days after the acceptance in placed in the mail d) When the buyer acknowledges receipt of the document

a) As it is placed in the mail

How does a buyer change an already agreed upon contract? a) By using an amendment b) By using a contingency c) By using a codicil d) By using a supplement

a) By using an amendment

Which parties in a transaction can generate a counter-offer? a) The buyers and/or sellers b) Only the buyers c) Only the sellers d) Only the listing agent and the sellers

a) The buyers and/or sellers

Which of the following statements is most accurate regarding a sales contract? a) There can be several originals as long as each one has original signatures. b) There can be only one original contract. c) There can be several originals as long as each one has been notarized. d) Original contracts must not include counteroffers and amendments.

a) There can be several originals as long as each one has original signatures.

The statute of frauds concerns the enforceability of a contract and a) not its validity. b) its validity. c) its damages. d) its offer to rescind the offer.

a) not its validity.

According to the Uniform Electronic Transactions Act, an electronic signature is defined as a) a symbol attached to a record by a person. b) an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record. c) an executed record adopted by a person. d) the process attached to a data stream that gives the logical associated with a record of an actual person.

b) an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

Which of the following statements is most accurate? a) Sellers have the right to withdraw the property from a sale, any time after the seller's acceptance of an offer. b) Buyers do not have the right to withdraw their offer any time prior to the seller's acceptance. c) Buyers have the right to withdraw their offer any time prior to the seller's acceptance. d) Buyers have the right to withdraw their offer any time after the seller's acceptance.

c) Buyers have the right to withdraw their offer any time prior to the seller's acceptance.

What happens when an offer has not been accepted by the expiration date? a) The offer automatically becomes a contingency. b) The offer automatically becomes an amendment. c) The offer automatically expires. d) The offer is automatically extended for five working days.

c) The offer automatically expires.

Puffing is the practice of a) hiding facts from the public. b) inflating a listing price, but accepting a much lower sale price. c) exaggerating the value of a property or business for promotional purposes. d) exaggerating the facts of a property to encourage more showings.

c) exaggerating the value of a property or business for promotional purposes.

When does an offer become a contract? a) An offer becomes a contract when the offer is counteroffered by the seller. b) An offer becomes a contract when a counteroffer is rejected by a buyer. c) An offer becomes a contract when an offer is received by the buyer's broker. d) An offer becomes a contract when acceptance is absolute and all the terms of the offer are accepted by all parties.

d) An offer becomes a contract when acceptance is absolute and all the terms of the offer are accepted by all parties.

What is it called when one party takes an offer back? a) Avoidance b) Noncompliance c) Reversal d) Revocation

d) Revocation

What is the status of an offer, upon the death of either the seller or the buyer? a) The death of the buyer does not impact the actual offer. b) The death of the seller does not impact the actual offer. c) The death of either the buyer or seller will not impact the actual offer. d) The death of either the buyer or seller will cause termination of the offer.

d) The death of either the buyer or seller will cause termination of the offer.

In February 2007, South Carolina adopted what standard for approved electronic signatures? a) National Electronic Signatures in Global National Commerce Act b) United States Electronic Signatures in Global National Commerce Act (ESIGN) c) Uniform Signature Transactions Act (USTA) d) Uniform Electronic Transactions Act (UETA)

d) Uniform Electronic Transactions Act (UETA)

Puffery statements a) are objective in nature. b) are specific and can be verified. c) contain lots of facts. d) are subjective in nature.

d) are subjective in nature.

Licensees are a) allowed to reject any offer that does not come within 10% of the listed price. b) obligated to screen all offers and only present the best offer to their clients. c) obligated to present all offers to their clients, even if the seller has provided other instructions in writing. d) obligated to present all offers to their clients, unless the seller has provided other instructions in writing.

d) obligated to present all offers to their clients, unless the seller has provided other instructions in writing.