TN Unit 3

All of the following are personal property EXCEPT

a wall-to-wall carpet in the bedroom.

Home inspectors are considered "generalists." Generalists

are knowledgeable about most home systems and construction but are not experts.

For the protection of all parties, the National Association of REALTORS® Code of Ethics encourages that all

contracts be in writing.

If a buyer wishes to back out of a contract in a backup position, the buyer

may do so, normally with written notice.

An agent has successfully negotiated a sales contract. Because he is the listing agent, multiple listing service (MLS) rules require him to

notify the MLS of the status change.

The BEST time frame to be given for a property sale contingency to be satisfactorily resolved when the seller receives another offer is

24 to 72 hours.

Which of the following statements regarding a contingency is NOT true?

A contingency must always be included in the original offer to purcha

When is the flyer For Your Protection: Get a Home Inspection required to be given to purchasers?

It is to be given to all purchasers acquiring an FHA loan.

Which of the following is necessary for a valid legal contract?

Legal purpose

Which type of legal description starts at a designated place on the parcel called the point of beginning?

Metes and bounds

Which of the following is generally a concern for someone with allergies?

Mold

Which of the following is considered personal property?

Oriental rug in den

Which of the following would be a serious cloud on title?

Previous owner's wife never signed off on the deed

How long does the purchaser have to review the property owners association (POA) restrictions?

The time stated in the contingency addendum

Sales contracts should include

a statement of how the buyer intends to purchase the property.

"This is the nicest property we've seen, isn't it?" is an example of

a tie-down question.

A contract where two parties are entering into the contract, but only one is making a promise to attempt to induce the other party to agreement, is

a unilateral contract.

A contract may be discharged for any of the following reasons EXCEPT

a unilateral decision by either party to terminate the contract.

In general, contingencies in a sales contract create

a voidable contract.

An addendum is

additional information given in the offer.

Regarding a legal document, the licensee may

advise on the meaning of the business details.

A contract is said to be implied if the

agreement of the parties is demonstrated by their acts and conduct.

To make a change to a contract,

an amendment must be used.

The voiding of a contract by a minor is

an example of terminating a contract by operation of law.

When the parties agree to terms and show their intentions in words, whether orally or written, the agreement is said to be

an express contract.

Some sales contracts, especially those for property in which there is a septic system, require the sellers to disclose their knowledge of a manmade well with a pump that forces treated wastewater into the ground. Such a well is called

an exterior injection well.

In some states, showing property to prospective buyers might indicate that

an implied contract has been created.

An agent has prepared a sales contract with a buyer, indicating the buyer's intent to purchase a property. Until all parties (buyer and seller) have reached agreement, this prepared document is considered

an offer.

If the buyer cannot fulfill the mortgage contingency, the seller has

an opportunity to void the contract.

After a sales contract has been negotiated but before closing, agents

are not required to continue to market the property.

The EPA regulates underground storage tanks containing hazardous substances that store

at least 10% of their volume underground.

NOT every contract must

be in writing.

If notices of acceptance of a contract are faxed or emailed to the parties, such notification is considered

binding.

Legal consideration in a contract means

both parties agree that something in the contract has value.

An offer to purchase becomes a contract of sale when it is accepted, signed, and dated by the offeree and

both parties have been notified of the other party's acceptance.

Mr. and Mrs. Seller are separated, and she actually lives in another town. It is still important to have her signature on

both the listing agreement and the sales contract.

The party who usually benefits from simultaneous issue is the

buyer.

The statute of frauds in Tennessee states that if a lease agreement is for one year or less, it

can be verbal and still be enforceable.

The earnest money is frequently held by the

closing agent.

A well and septic inspector always checks specifically for

coliform bacteria.

For a sales contract to be enforceable, one would need to address

contingencies.

When a contract is signed by all parties and fully negotiated, the parties to the contract should be given

copies.

A buyer who has a signed buyer agency agreement with one agent but purchases a property through another agent is

in breach of the buyer agency agreement.

A listing broker who fails to advertise or otherwise promote the listed property is

in breach of the listing agreement.

Under the statute of frauds, all contracts for the sale of real estate must be

in writing to be enforceable.

A contract that attempts to have an illegal objective is considered

invalid.

An amendment

is a change to the original agreement.

Tennessee typically does NOT use the government rectangular survey system because

it continued to use the legal description that North Carolina was using.

A situation in which a seller is retaining title to the property until full payment is made by the buyer is a

land contract.

Inspections that are frequently mandated by state or local law include all of the following EXCEPT

lead-based paint inspection.

A seller willing to accept a contingency on the purchasers' selling their present home would be protected by all of the following EXCEPT

leaving the termination date of the contingency open until the projected closing day.

A valid legal contract must have

legally competent parties.

When describing real estate, the system that uses a property's physical features to determine boundaries and measurements is

metes and bounds.

An appraisal contingency is closely tied to the

mortgage contingency.

The disclaimer portion of a preprinted sales contract indicates that

neither party has relied on statements by the agent as to structural integrity.

A voidable contract between an adult and a minor does not have to be terminated but may be terminated because

of the underage status of the minor.

Offer and acceptance is one of the essential elements of a contract. The party making the offer is the

offeror.

The original contract stated that the washer and dryer did not convey with the property. After checking prices on new appliances, the purchasers have prepared an amendment to change the contract to say that the washer and dryer do convey. If the sellers refuse to sign the amendment, the

original contract remains in place without the washer and dryer.

While there are still items to address in a binding agreement before closing, the contract is said to be

pending.

Every metes-and-bounds legal description must have a

point of beginning (POB).

The property sale contingency protects

the buyer.

The seller should require that a home inspection be done by

a professional home inspector.

Lead-based paint disclosure is

required by federal law.

An agent wants to make sure that his client understands that written time contingencies must be met on time as written in the contract. To do so, the sales contract he uses contains the words

"time is of the essence."

An amendment would be the appropriate document in which of the following?

Date of settlement changed from July 20 to July 25

What type of clause allows a seller to continue to market a property when the seller has a contract in place with a buyer that includes a contingency?

Escape

The original contract did not specifically state that the sellers intended to remove three crepe myrtle trees from the side yard. When the trees were gone at the time of settlement, the purchasers

have the right to demand their return.

When an addendum was returned to the sellers with a cross-hatch change initialed by the purchasers, only one of the sellers initialed the change. What is the status of the contract?

The original contract remains in place.

Which of the following is NOT a valid way to define a legal description?

Street address

A contingency should contain all of the following elements EXCEPT

a personal reason for requiring the contingency.

Which is the BEST way to list the seller's name on the contract?

William J. Jones

Which of the following would NOT be part of the real property being sold?

Wrought-iron bench on patio

To fulfill requirements that the buyer be informed of the hazards of lead-based paint, licensees working with the buyer must be certain before the closing that the buyer receives

a booklet explaining the hazards of lead-based paint.

Contingencies that often appear as part of a standard sales contract include all of the following EXCEPT

a hazardous material inspection contingency.

All of the following need to be a part of an early move-in occupancy agreement EXCEPT

delayed walk-through date.

Common areas of concern in sales contracts include all of the following EXCEPT

earnest money deposits.

A title contingency

ensures clear title.

Tennessee contract law allows licensees to

fill in blanks and amend preprinted contracts.

The type of deed used MOST often in residential real estate transactions is

general warranty deed.

When preprinted forms promulgated or approved by state law do not sufficiently cover special provisions in a transaction, the licensee should

have the parties consult their own attorneys to draft language acceptable to both.

The original sales contract held the seller responsible for any repairs made necessary by termite damage. After receiving the inspection report and an itemized list of needed repairs, the sellers want to ask the purchasers to split the cost with them. This request should be done by

preparing an addendum to the contract.

In Tennessee, the type of agreement that must be in writing is an agreement to

provide representation.

The risk of loss portion of a purchase and sales agreement usually states that in the event of damage to the property before closing, the risk of financial loss is usually borne by the

seller.

A backup addendum

should state that in the event the primary contract becomes void, the backup contract becomes primary.

When a buyer makes a written offer, it is imperative that the buyer

sign the offer.

The Uniform Electronic Transactions Act (UETA) provides that

signatures by electronic means are as binding as handwritten ones.

The essential elements of a contract include all of the following EXCEPT

signatures of the parties.

When boundaries are measured by calculating the dimensions and area to determine the exact location of a piece of land, the process is known as

survey.

An amendment must include

the legal address of the property, names of the parties, and dates of ratifications.

Details that should be included in any postclosing agreement include all of the following EXCEPT

the reason the sellers have requested a postclosing agreement.

When the names of the parties are entered into a sales contract, it is also recommended that

their relationship be stated.

If the parties change their original promises on an amendment and then decide they want to make a change to the closing date,

they can do so as long as both parties agree to the changes.

A cloud on title means that the

title has some defect that must be corrected.

In a sales contract, entering the street address instead of the legal description is

usually sufficient.

A breach of contract is a

violation of any terms or conditions of a contract without legal reason.

A contract between someone sane and someone legally declared insane is

void

A buyer has contracted with a seller to purchase a rural home for the sole purpose of hiding a wanted felon. She included $15,000 as earnest money to show her sincerity. Her intent was discovered, and the court voided the contract. The reason for the court's action was that the contract is

void because it was a contract to do something illegal.

A seller and a buyer have negotiated a sales contract. Before closing, it is discovered that the buyer is a minor. The sales contract is

voidable on the part of the buyer.

When a contract appears to be valid but may be rescinded or disaffirmed by one or both parties based on some legal principle, it is

voidable.

An important part of a sales contract is to indicate

who will hold the earnest money.