8.2 Quiz
Harry lists his property for sale with Hermione, a provisional broker with ABC Realty, by signing a Exclusive Agency listing agreement that authorizes both dual and designated agency. Ginny, the broker-in-charge with ABC Realty, is working with a buyer under oral buyer's agency, that has authorized both dual and designated agency. The buyer, Ron, decides to write an offer on the property on Friday at 5:00 PM. Ginny promptly delivers the offer to Hermione at 7:00 PM on Friday and the seller asks that it be emailed immediately to him. The seller signs and dates the offer at 10:00 AM on Saturday and emails it back to Hermione at 10:10 AM on Saturday. Hermione waits until 9:00 AM Sunday to notify Ginny of the sellers acceptance. Ginny promptly calls Ron at 9:05 AM Sunday to inform him of the seller's acceptance. At what point did the offer become a legally binding contract?
10:10 AM Saturday when Hermione was informed of seller's acceptance
Which of the following statements about brokers' responsibilities for handling offers is TRUE?
A broker must submit an offer to his/her seller-client immediately, even if the seller's property is already under contract
In North Carolina, which of the following types of contracts must be in writing and signed by the parties in order to be enforceable against that party?
A contract that grants an appurtenant easement.
All of the following will terminate an offer, EXCEPT:
An offer from a third party
Which of the following statements about counter-offers is TRUE?
In order for the counteroffer to be binding, the party making a counteroffer should initial each change made to the original offer
A buyer makes an offer that is agreeable to the seller. The seller has indicated to the listing agent that he intends to sign the offer. The listing agent calls the buyer and says that we are under contract. Is this an accurate statement?
No. The seller must sign the offer and such signing must be communicated to form the contract.
Suppose a listing broker receives an offer to purchase that fully matches the terms of the listing contract. Before presenting the offer however, suppose the broker receives two additional offers, one for less than the listing price but for cash, and one for more than the listing price but requesting the seller finance a portion of the sales price. Which of the following is the best approach for the listing broker to take regarding the order of first presentation of the offers?
Present all offers at the same time
A seller is obligated to check with to see if a party is interested in purchasing a property before listing it for sale is best defined as a(an):
Right of first opportunity/first refusal.
Kathy Klutz makes a cash offer to purchase a home listed by Wanda Wave of Seaside Realty through Sally Sunshine, another agent of Seaside Realty. The offer contained a time limit, where the seller must respond within 5 days by 5:00 pm. Seaside Realty is a dual agent in the transaction. Wanda Wave's seller accepts the offer in Wanda's presence, 3 days after the offer was made . As Wanda returns to the office, Sally Sunshine receives a phone call from Kathy who has fallen off the pier and broken her leg. She wants to withdraw her offer and move to the desert. Which of the following statements is TRUE?
She cannot withdraw the offer since Wanda has been notified of the seller's acceptance
A listing agent lists a property for sale and receives multiple offers. Which of the following actions should be taken by the agent?
The agent must present all offers and allow the seller to decide which action to take.
A listing broker receives an offer to purchase for $192,000 from Buyer A on a listed property and submits the offer to Seller. While Seller is considering this offer, the listing broker receives another offer on the same property from Buyer B for $194,000 and also submits this offer to Seller. Which of the following statements is TRUE?
The listing broker must obtain the permission of Buyer B to disclose the terms of Buyer B's offer to Buyer A
Before leaving town on vacation, Buyer gives a signed offer to purchase to his buyer's agent. The buyer's agent presents the offer to the listing agent. Seller signs the offer without any changes and the listing agent notifies the buyer's agent of the acceptance. The buyer's agent unsuccessfully tries to contact Buyer with news of Seller's acceptance. The next day, the buyer's agent gets a voicemail message from Buyer saying that he has had second thoughts and is withdrawing his offer. Which of the following statements is TRUE?
The offer became a binding contract when the buyer's agent was notified of Seller's acceptance.
An offeror may revoke their offer in all of the following situations EXCEPT:
The offeree has communicated acceptance of the offer
If an offer has been transmitted to the seller for his consideration and before a decision is made another offer is submitted
The second offer should be submitted immediately to the seller
Carolyn is interested in purchasing property in Durham, NC however does not want to hire a buyer's agent to represent her. She locates a broker, Kevin of ABC Realty, that is willing to act as a seller's subagent. Kevin shows Carolyn multiple properties before find a home listed by the broker in charge of XYZ Realty, Betty. Kevin writes the offer, using the Standard NCAR / NCBA Offer to Purchase and submits it to Betty at 4:00 PM on Tuesday. Betty meets with the seller at 7:00 PM on Tuesday, presents the offer and the seller accepts the offer by signing at 7:30 PM. Betty immediately calls Kevin to inform him of the acceptance. Kevin calls Carolyn at 8:15 PM on Tuesday to notify her of the seller's acceptance. When was the property under contract?
When Kevin notified Carolyn that the seller accepted the offer to purchase
A buyer makes an offer to purchase a property for $425,000 with the seller promising to pay $4,000 in closing costs and the closing to occur within 30 days. The seller agreed to all terms except for the closing costs which the seller eliminated, signing the offer and sending it to the buyer's agent. This is the best example of:
a counteroffer
A broker receives an offer to purchase from a buyer on the NCAR/NCBA Standard Form 2-T Offer to Purchase and Contract for a property listed on behlaf of a seller-client. A $5000 check is attached for the initial Earnest Money Deposit. The offer includes a provision that states "This offer will expire in five days." Two days later, the buyer notifies the listing broker that he is withdrawing the offer. The broker should
notify the seller that the offer is no longer valid and return the earnest money to the buyer
The buyer's offer will NOT be automatically be terminated if
the buyer submits an offer to purchase on another property
Under a purchase contract for real property, all the following are essential elements, EXCEPT:
the deed must be recorded to be valid.