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