Chapter 4 - Covenants, Commitments, & Notices
Brokers are required to maintain copies of the lead-based paint addendum for a minimum of how many years after the transaction...? 1 2 3 5
3
The buyer loses their right to a termination option if they fail to provide the options money within how many days of the effective date of the contract...? 1 3 7 30
3
The title policy for a property is discussed in paragraph ........of the One to Four Family Residential Contract - Resale? 1 3A 5 6A
6A
A buyer's objections to defects or encumbrances to title are described in which paragraph...? 2 3D 6D 21
6D
Optionor
A person who gives an option.
Optionee
A person who receives an option.
Option
A right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right.
A summary or digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title is known as a...? Abstract of Title Survey Chain of Title Title Summary
Abstract of Title
Covenants
Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or non-uses of the property.
If the buyer accepts the condition of the property, they are accepting the property...? As-is With warranties from the seller With guarantees from the seller With a partial refund from the seller
As-is
Since a title policy is a contract, it is...? Binding and enforceable Unenforceable Acknowledged and recorded Void
Binding and enforceable
Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or non-uses of the property are known as...? Covenants Surveys Commitments Endorsements
Covenants
Earnest Money
Down payment made by a purchaser of real estate as evidence of good faith. A deposit or partial payment.
A down payment made by a purchaser of real estate as evidence of good faith is referred to as...? Buy-down money Earnest money Discount money Origination deposit
Earnest money
Which of the following acts as liquidated damages if the buyer defaults on the purchase contract...? Earnest money Buy-down money Discount money Origination deposit
Earnest money
Who pays for the title policy as stated in the purchase contract...? The seller only The buyer only Either the buyer or seller, whatever is agreed upon The escrow company
Either the butter or seller, whatever is agreed upon
A buyer has ............ during the options period? Legal title to the property Full title to the property Equitable title to the property Interim title to the property
Equitable title to the property
An earnest money deposit is required in all residential transactions...? T (True) F (False)
False
Buyers of residential properties built prior to 1978 are required by ......... to receive the Protect Your Family From Lead Based Paint booklet? TREC TRELA HUD RESPA
HUD
A residential service contract is also known as a...? Options contract Rebate contract Home warranty Title policy
Home warranty
Trust Funds
Money, or other things of value, that a real estate agent receives on behalf of the principal or any other person involved in a transaction.
Which of the following refers to a right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right...? Exclusive agreement Earnest agreement Open agreement Option
Option
A person who receives an option is known as the...? Optionee Optionor Trustee Trustor
Optionee
A person who gives an option is known as the...? Optionee Optionor Trustee Trustor
Optionor
Marcus has entered into a contract to purchase a new house. What will Marcus do during the options period to ensure the property is in the proper condition...? Perform his due diligence Obtain title insurance Obtain a certificate of occupancy for the property All of the above
Perform his due diligence
Paragraph 7 of the One to Four Family Residential Contract - Resale describes which of the following...? Earnest money Property condition Seller financing Title policy
Property condition
Which of the following prohibits the seller from requiring a specific title company as a condition of the sale...? HUD TREC NAR RESPA
RESPA
Rules regarding pets in a subdivision are included under which of the following...? Commitments Endorsements Title policy Restrictive covenants
Restrictive covenants
If the seller fails to provide the buyer with the Seller's Disclosure Notice, the buyer may do which of the following...? Change the effective date of the contract Sue the seller for liquidated damages Place a lien on the property Terminate the contract and receive his/her earnest money back
Terminate the contract and receive his/her earnest money back
Restrictive covenants are written into what document...? The mortgage commitment letter The property's deed The Certificate of Occupancy The building permit
The property's deed
Paragraph 6E of the One to Four Family Residential Contract - Resale describes which of the following...? Disclosures Seller Financing Survey Title Notices
Title Notices
According to paragraph 6E, the seller shall provide the buyer with either an abstract of title or...? Title summary Title commitment Title policy Chain of title
Title policy
The purchase of a residential service contract is optional...? T (True) F (False)
True
The title company used in a transaction must be agreed upon by both the buyer and seller...? T (True) F (False)
True
Money, or other things of value, that a real estate agent receives on behalf of the principal or any other person involved in a transaction is known as...? Earnest funds Agent fees Deposit funds Trust funds
Trust funds
