Real estate

Four months ago a seller accepted an offer from a buyer to purchase her home. The contract was in writing. Later, the seller refused to complete the transaction. Under the Statue of Limitations, so his right to sue does not "outlaw," the buyer must file an action within: A. 90 days B. 1 year C. 2 years D. 4 years

4 years

After obtaining a listing from a corporation, all the officers were killed in an accident. The listing is: A. Valid B. void C. voidable D. Invalid

A. valid **Death of the officers does not affect the listing contract made with the corporation

Fraud would be found if: A. the buyer purchases property based on deceit by the seller, and the buyer loses a large sum of money B. an intentional misrepresentation by the seller induces the buyer to purchase. C. material facts incorrectly stated causing the buyer serious financial loss. D. all of the above

All of the above

Which of the following would identify a rider? A. People B. Amendment C. Encroachment D. Donee

Amendment ***A rider is an addition or an amendment to an existing document

Which of the following contracts must be in writing to be enforceable? A. A lease for one year B. A listing to lease for one Year C. An agreement by a buyer to assume an existing loan secured by a deed of trust D. An agreement between brokers to share a commission

An agreement by a buyer to assume an existing loan secured by a deed of trust

An offer on a home listed under an exclusive agency listing was presented to a seller and immediately accepted and communicated to the buyer. Before the deal could be placed in escrow, the seller found another buyer with all cash and notified the broker that the original deal was off. Which of the following statements are true? A. Broker is entitled to no compensation B. Broker has an excellent legal basis to collect a commission C. The deposit must be reimbursed to the buyer and the buyer has no further claim of right against the seller D. All of the above

Broker has an excellent legal basis to collect a commission

A bilateral contract is one that is a(n) A. promise for performance B. promise for an act C. act for a promise D. promise for a promise

D. promise for a promise A bilateral (two-sided) agreement contains a promise for a promise. For example, an exclusive authorization and right to sell listing (a bilateral agreement) contains the owner's promise to pay a commission if the property sells during the listing period. In exchange for this promise, the broker promises to use due diligence in procuring a buyer for the property.

A buyer signs a deposit receipt on February 5. The offer will expire at 5:00pm on the 5th day after the buyer signed the offer. Therefore, the offer is good until 5:00 pm: A. February 8 B. February 9 C. February 10 D. February 11

February 9 The day it is dated counts as the first day: 5-6-7-8-9

In which of the following instruments would you find a safety clause for the protection of the real estate broker? A. Deposit receipt B. Lease C. Loan broker's statement D. Listing

Listing This is part of the compensation clause

Title to real property would immediately pass to the purchaser under which of the following contracts? A. Land contract of sale B. Installment sales contract C. Agreement of sale D. None of the above

None of the above All of these contracts are conditional sales contracts whereby the seller retains title until the contract is paid off. At that time, a deed is given and title passes

When an existing contract is replaced by an new contract, with the intent to replace the existing contract, it is called: A. assignment B. rescission C. novation D. rehabiliation

Novation

The words "procuring cause" are most often found in which of the following contracts? A. An exclusive right to sell listing B. Deposit receipt C. Open listing D. Exchange agreement

Open Listing ***The "procuring cause" for a sale in an open lilsting is the broker that first produces a customer ready, willing, and able to buy the property according to the terms of the open listing.

Who is entitled to a commission when a property is not listed at the the time of the offer and has been shown to a buyer by more than one broker? A. The broker who is the procuring cause B. Whoever listed the property prior to the sale C. No one D. All brokers who showed the property

The broker who is the procuring cause ***the agent who writes an accepted offer is known as the procuring cause.

An owner gave an open listing to broker Rose and broker Daisy, who have both shown the property to Ms. Lily. Broker Rose gets an offer from Ms. Lily and a signed acceptance. Which of the following is correct? A. The commission will be split between Rose and Daisy B. The commission will be paid to Rose C. No commission paid on an open listing D. The commission will be paid to Daisy

The commission will be paid to Rose

An option to buy real estate become a mutually binding contract, when: A. the option is given to the optionee by the optionor B. the optionee exercises the right to purchase C. the consideration for the option is given D. any of the above happens

The optionee exercises the right to purchase **An option to purchase becomes a mutually binding contract when the optionee (buyer) exercises the right to buy

Mr. and Mrs. Flowers made an offer to purchase a house, which was accepted. The escrow was close in 30 days. Just before the closing, the owner changed his mind and decided not to sell. Which of the following is not an alternative for the buyer? A. They may rescind the contract B. They may file a writ of execution C. They may file an action for specific performance D. They may sue the seller for money damages

They may file a writ of execution

A broker, who has a listing together with an option on a property, wants to exercise the option and sell the property himself. Which of the following is true? A. He is an optionr B. He is an agent C. This is permissible providing he gives notice to the parties that he holds an option and states to the owner how much profit he is to recieve D. This is not permissible since it violates his fiduciary relationship

This is permissible providing he gives notice to the parties that he holds an option and states to the owner how much profit he is to receive ***The broker may take an option along with the listing, provided he divulges his profit and advises the owner in writing prior to exercising the option

The following terms are closely associated with real estate. Which does not belong with the others? A. Offer B. Title C. Option D. Rejection

Tittle

All of the following are essential to create a valid contract, except: A. lawful object B. writing C. mutual consent D. consideration

Writing

An exclusive authorization and right to sell listing to sell a home, just entered into, can be described as: A. a cash agreement to purchase properties that are bilateral B. a bilateral executory contract C. a land contract where by licensee may obtain commissions from both the buyer and seller D. all of the above

a bilateral executory contract ***The exclusive right to sell listing is a bilateral contract. An executory contract is one which has not been completely performed

In considering a bilateral contract, the offered promise bargains for receipt of a returned promise. If the return promise is given, it is considered: A. an option B. a consideration C. a unilateral agreement D. none of the above

a consideration

In the preparation of an exclusive listing contract, a licensee may be disciplined if he fails to include: A. the asking terms of the financing B. a clause making the agreement C. a clause indicating that time is of the essence in carrying out the terms of the contract D. a definite expiration date.

a definite expiration date All exclusive listing must have a definite termination date

The meaning of the word "waiver," as it is applied to real estate contracts, most nearly means: A. Estoppel B. unjust enrichment C. easements D. a unilateral act and its legal consequences

a unilateral act and its legal consequences "The word "wavier," as applied to a real estate contract, most nearly means a unilateral act an its legal consequences. One party "waives" the right to have another party perform in the contract

A solemn declaration by a person whose religious beliefs forbid the taking of an oath is: A. an affidavit B. an acknowledgment C. an affirmation D. none of the above

an affirmation

An attorney-in-fact can do all of the following things except: A. Sign his principal's name B. perform acts of a general power of attorney C. deal in real property without recording his general power of attorney D. encumber his principal's property with a mortgage naming another as the beneficiary

deal in real property without recording his genral power of attorney ****The attorney-in-fact has no power to act for his principal until the power of attorney is recorded

A husband and wife owned their home as joint tenants. The husband signed an exclusive authorization and right to sell listing agreement with a broker without disclosing the manner of title holding in the property and without his wife's signature on the listing. In the event of a commission dispute, the broker: A. may bring action to force the wife to sell her interest B. may sue the husband separately in civil court for his commission C. has no right to a commission because he failed to obtain the wife's signature on the listing D. may bring court action against the community estate

may bring court action against the community estate

Even when fully executed and performed, this contract is unenforceable. It is a(n) A. net listing where the broker did not disclose the amount of compensation to the principal B. oral listing for the sale of a business opportunity C. oral listing for the lease of a home for one year. D. signed open listing that did not contain definite termination date.

net listing where the broker did not disclose the amount of compensation to the principal ***The broker must disclose the amount of his or her compensation on a net listing prior to or at the time of the principal binds the broker to the agreement.

A broker has an option to purchase in an agreement which also employs the broker to sell the parcel of real property and to obtain a commission from the sale. Before the broker can legally exercise the option, he must: A. make a public notice of his intention to exercise the option B. put the necessary funds in escrow C. obtain the written consent of the seller D. give constructive notice to the seller

obtain the written consent of the seller

A remedy in court compelling a vendor to execute a deed in pursuance of a valid written contract is known as: A. foreclosure B. specific performance C. execution D. equity of redemption

specific performance ***Compelling him to specifically perform as agreed to in the contract

In real estate contracts, the consideration must be sufficient relative to value in order to win a lawsuit seeking: A. a lis pendens B. specific performance C. an attachment D. damages

specific performance Specific performance is an equitable remedy. Therefore, the judge must be convinced that the consideration is sufficient for the value of the property. A judge may refuse to grant specific performance if she feels the contract is unfair

Of the many requirements of an option agreement, it must specifically state: A. that the offer will remain open for a specific time period B. that the agreement is irrevocable C. that the optionor can keep the price paid for the option if the optionee fails to purchase D. the time for the optionee to purchase

that the offer will remain open for a specific time period. ***The option must state that the offer remains open for a certain period of time. In effect, when the buyer pays consideration to the seller for the option, the buyer is purchasing and agreed amount of time in which to accept or reject the offer to purchase the property

Deposit money never belongs to: A. the buyer B. the seller C. the broker D. none of the above

the broker

All of the following statements concerning an option are correct except: A. unless prohibited in the contract, the option is assignable B. the optionee has the first right to purchase the property C. the optionee has the legal right to enter and use the property right after the option has been entered into D. performance of the terms found in the lease option is sufficient consideration for the option agreement

the optionee has the legal right to enter and use the property right after the option has been entered into

A licensee sell property to a young married couple and later learns they are both 17 years of age. This transaction could be described as: A. void B. voidable C. illegal D. valid

valid

An 18 year-old wife bought property with her separate funds and instructed escrow to vest title in her 17-year-old husband and herself as community property. The purchase contract law: A. valid B. void C. voidable D. unenforceable

valid

Ms. Olden received an option from Mr. New on apiece of property valued at $1,000,000. As consideration for this option, Ms. Olden gave Mr. New $10.00 in cash. The option is: A. invalid B. valid C. voidable D. unenforceable

valid

After obtaining a listing from a corporation, all the officers were killed in an accident. The listing is: A. valid B. void C. voidable D. invalid

valid ***Death of the officer does not affect the listing contract made with the corporation

A broker took a listing for 90 days. During the term of the listing, the owner was declared mentally incompetent. The listing contract is A. Void B. Binding C. enforceable D. Voidable

void ***incapacity on the part of either of the parties to an employment contract will make it void

A contract obtained through duress, is: A. good B. voidable C. Void D. Unenforceable

voidable The injured party has the option to void the contract; therefore, it is voidable