CH 10

What language may be included in a contract after the assignor's name to make it clear that the contract is assignable?

"And/or assigns"

Jamaal and Brittany are selling their home, which was built in 1976. Which of the following must they provide to prospective buyers?

A lead-based paint disclosure form

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 market

What's the key difference between assignment and novation of a contract?

Novation releases the original party from all obligations, while assignment does not.

In an addendum to the purchase and sale contract, the seller agrees to paint the house before conveying the house to the buyer. The weather changes, and the seller is unable to finish painting the house before closing. Of what is this an example?

Partial performance

The owner of ABC Construction entered into a contract to build two homes for brothers Jack and John. The contract specified that the homes must be completed by April 1. ABC finished the homes on March 30. Of what is this an example?

Performance

Reggie has thoroughly reviewed the sales contract with his clients, the Arnolds, and has confirmed that they understand all of the terms and provisions. What should Reggie do next?

Recommend that the Arnolds review the sales contract with an attorney before signing it.

Both the buyer and the seller have to sign the purchase and sale agreement in order to demonstrate that ______.

They understand the terms

In contract law, when does partial performance occur?

When a party does some, but not all, of what the party has agreed to do

Carlos is preparing a sales contract for his buyer, and is recommending very tight deadlines for all negotiations, contingencies, and other due dates. What should Carlos and his client consider before finalizing these deadlines?

Whether the deadlines are realistic

Which of the following scenarios is an example of novation?

Doug is buying Norm's farm, but has a serious accident and no longer wants to own a farm, so his daughter Linda decides to buy the property. Norm agrees to the substitution of Linda for Doug in the purchase contract, effectively creating a new contract.

Your client Katrina is ready to close on her new home, but when you checked yesterday, the seller still hadn't dealt with the foundation issue that the inspector found. What is your responsibility at this point?

Ensure that Katrina knows that not all contingencies have been cleared.

A buyer, hoping to beat out all other offers, included a clause in the offer that reads, "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." What type of offer is this?

Escalator

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

Licensee Gwen and her buyer client Marcus are writing up an offer on Clayton's property. Gwen will need to use an additional provision in the offer. Which of the following reasons for using an additional provision apply?

Marcus is requesting that all mechanical system and appliance warranties transfer to him.

Sue Ellen has a contract to buy Roger's house, which she has always admired, when Roger decides he's ready to move to a senior living community. After Roger finds a suitable senior apartment and moves, Sue Ellen writes a check for the agreed-upon amount, and Roger transfers the deed to her. What is happening in this scenario?

Performance

Dan just listed a property two days ago and already has offers pouring in. It's a hot market and properties are moving quickly. Which of these options is the best strategy?

Have buyers submit their "highest and best" offers and then help his seller decide which offer is most appealing.

Anna and Cindy entered a contract to buy Jake's home. However, at the last minute, Cindy had a change of heart and wanted out of the deal. Anna asked another friend, Sally, if she wanted to take Cindy's place as a co-buyer of Jake's home. Everyone agreed to the substitution of Sally for Cindy on the contract. Of what is this an example?

Novation

Zack enters into a contract to buy Olivia's home. Per the terms of the contract, Zack must put down a $10,000 earnest money deposit and have the property inspected within five days. In reality, he puts down a $12,000 deposit and has the property inspected within two days. Of what is this an example?

Performance of the contract

Kurt is pricing a home for a client in a cold market. It's a great property, and he knows it would sell for above market value if the market were better. All things considered, what's the best pricing strategy for the home?

Price below market value

In a neutral market, what pricing strategy may generate interest in the property, possibly prompting multiple offers?

Pricing below market value

In a hot market, when all other sellers are listing at or above market rate, what pricing strategy will likely induce a bidding war?

Pricing just below market value

Which one of the following statements is true regarding a partially performed sales contract that otherwise contains all of the essential elements?

The contract is voidable.

Katelyn wants to include an inspection contingency in her purchase offer. Her agent explains that the inspection contingency will document which of the following?

The date by which all inspection issues must be addressed

Your brokerage firm uses pre-printed sales contract forms, but your seller, Marcus, wants to add some language about staying in the house and renting from the buyer for a month after closing. What should you use to add this information?

Addendum

Your buyer, Billy, wants to make an offer on the craftsman house he saw today, but he wants the sellers to start the paperwork for a tax reassessment before closing. This isn't part of the standard sales contract in your area. What will you use to accomplish this request?

Addendum

When a sales contract doesn't cover the terms needed by the parties, which of the following actions is a licensee allowed to take?

Add a standard addendum using standard language.

Drew is a buyer's agent representing Becky in the sale of Becky's condo. Gordon is represented by Jane, and is considering purchasing Becky's condo. Who's required to complete the Ohio Residential Property Disclosure Form?

Becky