section 13

What if the seller did, in fact, know the roof was damaged, but she stated it wasn't? Which options can a buyer take upon discovering the seller was purposely untruthful in her disclosures?

-Ask the seller to make necessary repairs and/or provide a credit to the buyer. -If the transaction has already closed, sue the seller for breach of contract or fraud. -terminate the agreement and ask for a refund of earnest money.

Your buyer clients Jen and Tony really like the patio set and bedroom furniture in the house you've just shown them. Because the market is hot, what would you advise they do?

Don't include those items in their offer.

Three important dates must be named in an option contract for it to be valid.

The date the option agreement is signed The date the option is exercised The closing date

What's the purpose of the warranty?

To protect the buyer in the event that certain defects or adverse actions occur

Which South Carolina legislation laid the ground rules for creating binding contracts electronically?

Uniform Electronic Transactions Act

from a seller's persepective, what is the best kind of offers and worst?

No contingencies is -best Appraisal and inspection contingency -ok Offer is contingent upon the sale of the buyer's current home -worst

Seller doesn't accept before the offer response deadline

expiration

If contingency deadlines are missed, they can be changed. t/f

false

The seller is required to repair all items noted on the inspection report. t/f

false

Your seller client receives an offer on his Columbia property. He makes a counter-offer. You must present the Real Estate Offer Rejection Form to the buyer. t/f

false

in a hot market, encourage buyers to eliminate the inspection and financing contingencies to make their offers more appealing to sellers. t/f

false

n South Carolina, verbal real estate contracts are legally enforceable. t/f

false

in a cold market, how should you negotiate?

go low; as much as 10 percent below asking price ask seller to pay buyer and closing costs buyer will call the shot

In what type of market is a buyer cautioned against asking for personal items?

hot

The seller's calling the shots. There are more buyers than properties available, so many of those who are selling are doing so at or above list price, often with multiple offers to wade through. What type of market is this?

hot market

buyers that pay ____ usually have concerns over the property appraisal

in cash

Glynnis is ready to close on her new house, but her agent told her that they have to wait for the homeowner to fix the electrical box as agreed. What clause in her contract allowed her to request the repair?

inspection contingency

In some situations, sellers may ask buyers to waive the ______ when they make their offers so the sellers don't have to sit with their house off the market for weeks while the inspection period runs out, stressing about whether the deal will fall apart.

inspection contingency

Which one of the following statements is true about a sales contract that's been signed by both parties, and both parties have been notified of its acceptance?

it is legally binding

an option contract can sometimes be attached to a ______

lease

An option contract that's attached to a lease is known as a ______, or a lease with an option to buy.

lease option

In this type of contract, the tenant pays a down payment that may be incorporated into the monthly rent payment. This contract's terms and conditions are negotiated at the time the lease is signed. Which type of contract is this?

lease-purchase contract

When a South Carolina licensee is involved in a personal real estate transaction, which of the following must she disclose to the other parties to the transaction?

license status

Information is considered _____ if it is important in deciding what course of action the buyer takes regarding the real estate transaction.

material

licensee responsibility to disclose acronym - MAAP

material adverse actual physical

To address a disputed claim, you must first engage in _____ to attempt a resolution. If a resolution is not found, ______ may be the next step.

mediation, arbitration

It's not much of a secret that listing agents love ______, and buyers' agents hate them. And ____ loves contingent sales.

multiple offers; no one

This was a tough market for Alison to predict. After talking with Brody, her seller, and evaluating market conditions, they thought it best to price his property below market value to generate interest and hopefully garner multiple offers. After a few weeks on the market, an offer came in that was $20,000 below list price. Hoping to do a little better, Brody countered at just below list price, and the buyer accepted.

neutral

buyer purchases a home that's newly built or still being built and hasn't been owned before.

new construction contract

is SC a caveat emptor state?

no

is an offer a contract?

no; it is a request to enter into a contract

You and a buyer client are filling out the sales contract in the hope of buying the house of the buyer's dreams.

offer

The party receiving the offer is an

offeree

The party extending the offer is an

offeror

Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered at 5 p.m. on May 3. By that date and time, there were four offers. The persons making these offers are the ______.

offerors

Buyer files for bankruptcy or house is condemned

operation of law

is an offer to purchase a specific piece of real estate but without the obligation to buy it

option contract

if buyer decides not to move forth with option contract the seller keeps the

option fee

Margo is the potential buyer of the property in an option contract. Margo is the ______.

optionee

seller in option contract

optionor

Chevy is an optionee. What's his sole responsibility?

pay the option fee

When multiple offers are received, which of the following is something a licensee should do?

Prepare net proceeds statements on all offers.

Seth is a licensee working for a buyer, Britney. Britney wants to make sure the seller accepts her offer on a charming Cape Cod, so she tells Seth she wants to make a full-price, non-contingent offer right away. How should Seth respond?

"I highly recommend a home inspection contingency with your offer to protect yourself in the event there are major defects with the house."

Which of the following items are required for an option contract to be valid and enforceable?

- length of the option period. -The agreement must be in writing and signed by the seller. -The property's sales price or the way in which the price will be determined -he amount of consideration the optionee is paying the optionor (option fee)

What two of the following are the contractual promises of an option contract?

-The optioner will not sell the property to anyone else. --The optioner will sell the property to the optionee, if the optionee so chooses, under the terms and conditions of the contract.

what are buyer advantages of land contracts?

Buyer advantages include lower down payment and closing costs, more flexible financing criteria, and a chance to improve the buyer's credit score.

Summarizes all insurance claims filed relative to the property within the last seven years

CLUE report

Buyer Kelly and seller Javier just signed the purchase offer Kelly made to buy Javier's South Carolina house. What must Kelly's agent, Jim, do next?

He must provide copies of the signed agreement to Kelly and Javier then he must send a copy of the signed agreement to the South Carolina Real Estate Commission within three days.

What makes an option contract different from a regular sales contract?

In a "regular" sales contract, both the buyer and seller are bound to carry out their contractual obligations. In an option contract, only the optionor (seller) is bound by the option contract; therefore, it is a unilateral contract

in a neutral market, how should you negotiate?

Offer at list or slightly below list price; offer standard terms

At what point does an option contract become binding for both parties?

Once the optionee exercises the option

buyer in option contract

Optionee, not bound to preform

Eleanor is moving from a starter home into something a little larger. Her agent has cautioned her against making the offer on the new place contingent on the sale of Eleanor's starter home. Why the caution?

Sellers would view an offer without that contingency as a stronger offer.

The licensee must have _____ knowledge about the physical condition of the property; this means that even if the seller knows that the basement leaks and does not tell you about the leak, if you can plainly notice evidence of a leak you can't just turn a blind eye to it and claim ignorance. You must disclose what you know!

actual

Information is considered _______ if it is negative, usually regarded as any information that would reduce a property's value. Therefore, adverse material information would be considered any information that would cause an ordinary person to choose not to go through with the real estate transaction.

adverse

You and a seller client are reviewing the terms of the sale on which your client and the buyer have settled.

agreement

Which of the following begins as a unilateral contract and can become a bilateral contract?

an option agreement

Sanjeev leases a house from Clara, and the lease has an option contract attached that permits Sanjeev to buy the house if he chooses to exercise the option within three years. How large does the option fee need to be in order to be legally binding?

any amount agreed to by the parties

After completing the agreement of sale, you recommend to the buyer that she review the contract with an _____ before signing it.

attorney

a client must _______ anything put into an offer by agent

authorize

In caveat emptor states, which party carries the burden related to a property's condition?

buyer

in caveat emptor states, who should obtain a home inspection?

buyer

Seller makes no representations about the property's condition.

caveat emptor

Latin for "let the buyer beware."

caveat emptor; buyer is responsible for determining condition of property

An expedited close (provided the lender can meet the deadline)

close quickly

After meeting with her sellers, the Kowalskis and evaluating the market, Alison has come up with a strategy, and she doesn't think the Kowalskis will be thrilled to hear it. She thinks the best way to generate interest, given the number of similar properties on the market, is to price just below market value, and even then, not to expect a bidding war or multiple offers. In fact, the Kowalskis may need to be prepared for an offer that's even lower than the recommended list price. There's nothing wrong with the property; it's just the nature of this market. Which type of market is this?

cold

In what type of market is pricing a home below market value an especially good strategy, as buyers are scarce and unlikely to consider at or above-market homes?

cold

Buyer purchases property that's used for business

commercial property contract

Buyer makes payments directly to the seller, who keeps the title until the loan is paid off.

contract for deed / land contract

Seller agrees to some of the terms, but wants some of them replaced

counter-offer

Don and Becky realized too late that the contract they signed for the sale of their home didn't include any language about a rent-back if the home they're building isn't ready in time. What can their listing agent do?

create a contract amendment with the required language

during a hot market your buyers find a property they love, and they'd like to make an offer slightly below list price. What do you do?

discuss ways to improve the offer contact listing agent to see what sellers needs are

What three types of information are generally covered in a purchase agreement?

earnest money deposit the amount of purchase offer The buyer's financing contingencies

A buyer, hoping to beat out all other offers, will include an escalator clause in her offer that reads something like, "Buyer to beat all competing offers by $1,000 up to a price of $700,000. Seller to provide copies of competing offer to buyer on acceptance."

escalator offer

The licensee has a duty to disclose any adverse material fact about the _____condition of the property. This means if you know something is wrong with the foundation, a window does not open correctly, or a public easement crosses the property (to name a few issues), then you must disclose it. You don't need to disclose everything, though. For example, it's not your job to disclose the neighborhoods crime stats or that the local school system is overcrowded

physical

In a hot market, what pricing strategy may incite bidding wars?

pricing just at or below market value

Every written offer and counter-offer must be delivered _____ to the receiving party. Licensees must present all verbal and written offers made, but must put the _____ ones in writing before presenting them. All _______the client authorizes must be specified and included in an offer to sell or buy.

promptly; verbal; terms and conditions

A binding, written contract entered into by a potential property buyer and the property seller

purchase agreement

identifies the terms and conditions under which a seller will transfer a property to the buyer

purchase agreement

a prospective buyer's proposal to purchase a home.

purchase offer

Seller flat out turns down the offer

rejection

ways an offer can be terminated

rejection expiration counter offer operation of law

Buyer purchases a home that's pre-owned.

residential resale contract

other names for purchase agreement

sales contract agreement of sale residential resale contract

in a hot market, how should you negotiate?

sell high- seller put your best foot forward as buyer consider including escalation clause seller will call the shot

waiving the inspection contingency

selling as is

when completing offer forms with consumers, always... even if the buyer made a previous offer on another house and you'd just like to edit

start a new one While it may seem easier to edit the existing offer, it's easy to make mistakes that could cost your client.

means that the parties agree to proceed in good faith and not unduly delay the process

time is of the essence

Grace period for seller to move out

transaction ease

As of January 1, 2017, licensees are required to present the Real Estate Offer Rejection Form to buyers any time a seller rejects an offer without making a counter-offer. t/f

true

Buyer's agents must request permission from the buyers to provide copies of inspection reports. t/f

true

Electronic signatures and initials on offers and counter-offers are considered valid in South Carolina. t/f

true

If you are required to disclose inspection findings, then they must be disclosed to all parties in the transaction, not just your clients. t/f

true

South Carolina licensees must present all purchase offers. t/f

true

South Carolina licensees must present both written and verbal offers. t/f

true

The Real Estate Offer Rejection Form is only required when an offer is rejected outright. If a counter-offer is made, this form isn't required. t/f

true

Upon receiving an offer, licensees must promptly present that offer to their client. t/f

true

When the seller rejects an offer, licensee is legally required to present the South Carolina Real Estate Commission-promulgated Real Estate Offer Rejection Form to the buyer. t/f

true

An option contract is a _____ contract that can become a _____ contract. This only occurs if and when that option is exercised.

unilateral; bilateral

South Carolina licensees must disclose their licensed status when...

upon the first substantive contact