Promulgated Forms Unit 9

Under the contract between Kramer and Sweeney, Deep Pocket Mortgage decides to increase the interest rate on the loan to 5.5%. What are Sweeney options under the Loan Assumption Addendum?

May terminate and the earnest money will be refunded to Sweeney

How much is Fleming contributing to Donaldson's closing costs under the contract from Fleming to Donaldson?

Nothing

In the Kramer to Sweeney transaction, the lender will charge a 1-point transfer fee. Where is this indicated in the contract or addenda to the contract?

Paragraph D of the Loan Assumption Addendum

Under the Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum attached to the contract from Johnson to Swanson, who pays for the environmental assessment?

Swanson

Under the contract from Johnson to Swanson, who represents Swanson?

Swanson is not represented

Under the Seller Financing Addendum to the contract from Johnson to Swanson, what does "escrow not required" mean?

Swanson is not required to pay Johnson estimated monthly taxes and insurance.

Under the contract between Kramer and Sweeney, what happens if Sweeney paid the option fee on May 19 if the first contract terminated on May 16 and Sweeney received notice on the same day?

Sweeney does not have the unrestricted right to terminate the contract

Under the contract between Kramer and Sweeney, Sweeney gets a home inspection on May 25 and learns that the microwave is not working properly in the unit. Assuming that the first contract terminated and the amended effective date is May 17, Sweeney wants to amend the contract to have all the kitchen appliances replaced before closing. What are Sweeney's options?

Sweeney may not attempt to amend the contract because the option period ended on May 24.

Under the Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement attached to the contract between Kramer and Sweeney, what happens if Deep Pockets fails to release Kramer from liability on the loan to be assumed by Sweeney by the closing date?

The contract will terminate and the earnest money will be refunded to Sweeney.

Under the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway attached to the contract between Kramer and Sweeney, who is responsible for removing a building located on a public beach if shoreline erosion causes private beach property to become a public beach?

The owner of the structure

Which of the following is TRUE under the Addendum for Back-up Contract attached to the contract between Kramer and Sweeney?

Time is of the essence.

Under the Seller Financing Addendum to the contract from Johnson to Swanson, how long does Johnson have to terminate if Swanson fails to deliver his credit report in five days?

Within 7 days after expiration of the time for delivery

Under the contract between Kramer and Sweeney, when is Sweeney required to pay the option fee?

Within three days of the effective date of the contract

Under the Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum attached to the contract from Johnson to Swanson, how long does Swanson have to get an environmental assessment?

10 days

Under the lead-based paint addendum to the contract from Fleming to Donaldson, how long does Donaldson have to get a lead paint inspection?

10 days

Under the contract from Johnson to Swanson, how long does Swanson have to deliver a credit report?

5 days

What is the initial interest rate of the ARM under the contract from Fleming to Donaldson?

5%

Under the Seller Financing Addendum to the contract from Johnson to Swanson, what is the due on sale clause?

A provision that requires Johnson's consent if Swanson decides to sell the property

Under the contract between Kramer and Sweeney, what happens if Kramer and Wright amend the first contract?

An amendment of the first contract does not terminate it.

Why is the interest rate of the ARM addressed in paragraph 11 under the contract from Fleming to Donaldson?

Because the financing addendum does not address the ARM specifics

Under the contract from Fleming to Donaldson, if the effective date is February 12, when must the Donaldsons terminate the contract under paragraph 23?

By 5:00 pm February 27

Who is responsible for choosing the residential service contract under the contract from Fleming to Donaldson?

Donaldson

Under the contract from Fleming to Donaldson, who holds the option fee?

Fleming