RE Sections 10-12

c

According to ANSI standards, which of the following would be included in finished square footage? A finished attic room with ceiling height of six feet A finished potter's shed accessed via a stone path from the main house A stairwell leading from finished space to finished space The air space in a vaulted entry

material breach of contract

At age 65, Katie was purchasing her first home. The house she was buying was part of an estate, and the siblings who owned the house could not agree on anything. When Katie's agent sent paperwork to the sellers, they often didn't receive a response until well past the stated deadline. What type of contract discharge is this?

novation

Brad accepted a job offer in Charlotte and no longer wants to purchase a home in Kitty Hawk. He got his lender to allow him to substitute his brother as a new borrower for the loan. With everyone in agreement, Brad was relieved of his responsibility for the loan. What type of contract discharge is this?

a

Real estate sales contracts must be valid, express, bilateral, ______, and executed or executory. Enforceable Oral Unenforceable Voidable

c

Rex needs to handle some money he acquired during an "unsavory" business deal. He agrees to sign his boat over to his colleague, Ben, if Ben can launder the money and return it to Rex as part of a legal business deal. What kind of contract do Rex and Ben have? Executed Executory Void Voidable

no

Sandra started working with a buyer's agent about a week after the initial listing had expired. Her agent hadn't seen Ken's house but contacted him directly to find out if they could see it. Sandra ended up purchasing the house. Does the old agent get the commission on this if they had a 45 day protection clause in place? (yes or no)

a

Sondra thinks the new business contract she signed with her business partner is valid. Both parties are legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented. Which essential element of a valid contract has Sondra not yet considered? Whether consent was voluntary Whether the contract has been translated into all possible languages Whether the contract is in writing Whether the parties are over 21

t

T/F: Bids in excess of the amount due to a lender must be returned to the homeowner after a foreclosure auction.

F

T/F: Identify whether the following piece of info is available on the MLS: blueprints

T

T/F: Identify whether the following piece of info is available on the MLS: demographic information

F

T/F: Identify whether the following piece of info is available on the MLS: remodel details

T

T/F: Identify whether the following piece of info is available on the MLS: sale transactions

T

T/F: Identify whether the following piece of info is available on the MLS: tax records

t

T/F: In NC, the statute of fraud says real estate sales contracts must be provided in written form to be enforceable.

t

T/F: In the statute of fraud, it says that real property transfer contracts must have essential terms and conditions present

f

T/F: Lenders are required to accept the highest bid at a foreclosure auction.

f

T/F: Tax lien sales are permitted in all 50 states.

t

T/F: The North Carolina statute of frauds requires that both the husband and wife sign a contract if they are named parties.

F

T/F: The following space is included in a homes sq. footage: Pool house not connected to the main house

F

T/F: The following space is included in a homes sq. footage: attached garage

T

T/F: The following space is included in a homes sq. footage: finished attic (w stairs) with 7ft ceilings

F

T/F: The following space is included in a homes sq. footage: finished room above the garage with 6'4" ceilings

F

T/F: The following space is included in a homes sq. footage: unfinished basement

f

T/F: The statute of fraud says all NC leases, regardless of term length, must be in writing.

open listing

The Damons are selling their home. Thinking that it will help them cast the widest net of prospective buyers, they have agreements with Bill, Jan, and Paul, all of whom work with different brokers. Only the lucky dog who brings the buyer to the table gets the 5% commission the parties agreed to. What type of agreement is in place?

yes

The Dragles looked at Ken's house once during the listing term and once after it had expired, eventually signing a sales contract 28 days after the listing agreement had expired. Does the old agent get the commission on this if they had a 45 day protection clause in place? (yes or no)

$289,474

The Millers want to break even on the sale of their home after the broker's commission of 5% and loan balance of $275,000 are paid. At what price must the house sell (rounded to the nearest whole dollar)?

impossibility of performance

The vacation home Frankie was under contract to purchase was swept away by a hurricane. What type of contract discharge is this?

a

When Dashiell received the purchase offer for his bungalow, he was surprised to see a page added to the contract requesting that an attorney review the contract. What is Dashiell looking at? Addendum Amendment Annotation Appendix

a

When does offer and acceptance occur? When one party makes an offer, and the other party signs it and returns to the original party When one party makes an offer on a property, and the other party turns it down When one party makes an offer to a second party, and the second party makes a counter-offer When one party signs a contract voluntarily with full understanding of the terms

exclusive right to sell, exclusive agency, open listing

When the listing agreement includes a protection clause, there must also be clear language explaining the broker isn't owed a commission during the protection period if the seller enters into a valid listing agreement with another licensee once the first agreement expires. For which type of listing agreement is this required?

c

Which of the following laws requires that contracts—including contracts made for the sale of real estate or for leases of more than one year—be in writing? Fair housing laws Real estate license laws The statute of frauds The statute of limitations

d

Which one of the following statements is true regarding a partially performed sales contract that otherwise contains all of the essential elements? The contract can't close. The contract is unenforceable in court. The contract is void. The contract is voidable.

c

Which type of contract is the opposite of an express contract? Bilateral Executory Implied Voidable

no

You listed the Smiths' home and included a protection clause of 30 days. This time, the Smiths signed a new exclusive right-to-sell agreement with another licensee two days after your agreement with them expired. A few days after that, the Smiths signed a purchase contract with a buyer who viewed the property while it was listed with you. Are you owed a commission in this situation? (yes or no)

b

You're about to take a listing that has a safe room: 600 square feet of attic space that's completely finished, has a permanent heat source, and is accessed via a pull-down stairway. Can you add this to the total livable square feet? No, because attics are never included in livable square feet. No, because it lacks direct access from the main living area. Yes, because it has a permanent heat source and is finished. Yes, provided the ceiling height is at least seven feet.

d

Your 15-year-old son just signed a contract joining a health club, which costs $50 a month. Which of the following best describes this contract? The contract is missing a legal object. The contract is missing offer and acceptance. The contract is void. The contract is voidable.

a

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 Amendment Annotation Appendix

c

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? Buyer misrepresentation Partial performance of the contract Performance of the contract Voiding of the contract

exclusive right to sell

name the listing contract type: "I think I'd like to work only with you to list the property, and I'm fine with you receiving a commission, no matter who finds the buyer."

exclusive agency

name the listing contract type: "Let's say I want to work with you as my agent, but I also want to be able to try to find a buyer myself."

open listing

name the listing contract type: "What if I want to work with multiple agents but only pay a commission to the agent who locates a buyer?"

uniform electronic transactions act

what does UETA stand for?

a

Darrell's seller client indicated that the property's lot size was a half an acre. Darrell would like to verify this information so he doesn't misrepresent the property in his marketing materials. Which of the following documents should Darrell use to verify this information? A recent survey Prior sales records for the property on the MLS Promissory note Subdivision CC&Rs

d

DeeAnna thought she purchased an investment property, but the seller refused to deliver the title to her. DeeAnna met all of her obligations per the written contract she and the seller signed. She decided to take the seller to court in an effort to force him to hand over the title. This is an example of ______. Accepting partial performance Rescinding the contract unilaterally Suing for damages Suing for specific performance

a

Eileen entered into a contract to buy Peter's home. The contract specified that Peter must leave the refrigerator with the home, and he must replace the roof before closing. During the pre-closing walk-through, Eileen confirmed the house had a nice new roof, but also found that Peter took the refrigerator with him. Eileen decided she didn't want the refrigerator that much anyway so she didn't make a fuss. This is an example of ______ of the contract. Partial performance Performance Reinforcement Voiding

exclusive right to sell

Gerald wants a real estate agent who's going to work hard for him, and he's willing to pay the agent no matter who brings the buyer to the table. What type of agreement is in place?

accord and satisfaction

Herman promised to replace the roof with asphalt shingles, but the roofer used metal panels instead. Buyer Carl agreed this was acceptable. What type of contract discharge is this?

c

If a North Carolina licensee's license expires, can she still collect compensation? No, a person with an inactive license can't collect compensation. No, she'll need to wait until her license is renewed. Yes, as long as her license was active during the entire time she provided brokerage services. Yes, as long as her license was active when she entered into the listing agreement or buyer brokerage agreement.

c

If a property has window treatments, what are they considered to be? Appliances Fixtures Personal property Removable

b

In contract law, when does partial performance occur? When a party acknowledges receipt of the contract When a party does some, but not all, of what the party has agreed to do When a party meets all terms of the contract When a party rejects all terms of the contract

d

Ken signed a contract to purchase Debra's condo. Ken signed the contract two weeks prior to turning 18, which is the age of majority in his state. Debra found out about his age prior to the closing but honored the contract, and they closed on the condo a month after Ken's birthday. What was the status of the contract when Ken and Debra entered into it? Executed Illegal Void Voidable

b

Most auction properties are sold ______, which means the winning bidder agrees to accept the item in its current condition. As caveat emptor As-is Fair warning Without recourse

c

A buyer may have a valid claim of impossibility of performance if _______. A buyer's credit rating declined The closing date must be rescheduled The house caught on fire due to a gas leak The parties cannot negotiate terms

c

Alex, a high school freshman, started a neighborhood lawn care business. Simone decides to hire Alex to mow her lawn every two weeks. Alex presents Simone with a written contract outlining the services to be provided and the fee Simone will pay. Which of the following is true in this situation? Because minors can't enter into a contract, this contract is void. Because this contract binds Alex and Simone to an obligation that's legal for a minor to perform (mowing lawns), the contract is valid and enforceable for both parties. If both parties are content to uphold their agreement, the fact that it's not legally binding doesn't matter. Minors can't enter into contracts, so Alex's parents are legally obligated to uphold the contractual obligations if Alex fails to fulfill them.

a

Alexis is viewing property details for a listing she'd like to show her buyer clients. Which of the following items can she verify online without previewing the property in person? Neighborhood information Noise Seller property disclosures Traffic

b

All of the following are true regarding implied agreements EXCEPT which one? An implied agreement is based on actions or behaviors. An implied agreement is based on a formal agreement. With an implied agreement, it's possible that the other party didn't intend to be bound. With an implied agreement, there's an increased chance of confusion.

b

Brian is representing buyer Kayla in the purchase of a home. He's found one that she really likes, which is listed through Brighton Real Estate. Which of the following is true? Even if the listing is through an MLS of which Brian is a member, he should NOT assume that he'll receive a commission through the listing broker. If the listing is through an MLS of which Brian isn't a member, Brian should determine compensation prior to submitting an offer. If the listing is through an MLS of which Brian isn't a member, he can assume he'll receive a commission through the listing broker. Since Brian is a buyer's agent, he will be paid a success fee by his buyer client, like all buyer's agents.

release

Buyer Trina was unexpectedly transferred overseas, so she had to cancel her contract to buy Lori's house. Lori agreed. What type of contract discharge is this?

b

Camille, a buyer, wants to change the price already agreed to in a sales contract. What document should she use? Addendum Amendment Bill of sale New contract

a

Jane is about to discuss the exclusive right-to-sell agreement with seller Tom Barnes. Which of the following is true about all North Carolina listing agreements? They must include an expiration date. They must renew every two years. They must expire after six months. They can only be renewed once.

b

Jane met with buyer Alexis the next day. Alexis wasn't sure she wanted to enter into a buyer agency agreement. Which of the following is true? Jane can't assist Alexis until there is a written brokerage agreement in place. Jane can temporarily enter into an oral buyer representation agreement, as long as Alexis understands the terms of the agreement. Jane isn't allowed to enter into an oral buyer representation agreement with Alexis, but she can answer general questions about properties and allow her to look at them online.

b

Jenny decided to bid on a house in her neighborhood. The auctioneer announced the lowest bid that will buy the property. This is a(n) ______ auction. Absolute Minimum bid One money Reserve

b

Jill's employing broker, Carolyn, recently went on sick leave for a serious illness. While she was hospitalized for treatment, her license expired. Which of the following is true? Both Jill and the licensees affiliated with her can still continue to collect compensation, as long as she renews her license within 30 days. Both the firm and the individual licensees affiliated with the firm may be required to forfeit their fee for any transactions in process. The licensees who are affiliated with Jill's brokerage can still continue to collect compensation. The licenses of all affiliated licensees at the brokerage also expire.

operation of law

The city of Hickory was building a community center with a playground for kids. Joe's house was under contract, but he received notice from the city it was taking his property, as well as eight others in the area. What type of contract discharge is this?