Ch 34 quiz

Which of the following best defines a marketable title?

A title to a property that is free from encumbrances, litigation, and other defects and that can be readily be sold or mortgaged

The Statute of Limitations requires that parties to a contract who have been damaged or who question the contract's provisions do what?

Act within a statutory period.

Which of these items is not included in a lease agreement?

Alienation clause

Which of the following is a good example of a unilateral contract?

An option to buy

Which contract provision allows for the transfer of the contract to another person?

Assignment of a Contract

In which of these contracts is the payment of all or part of the sale price deferred?

Contract for deed

According to contract law, every valid contract is also what?

Enforceable or unenforceable

Which kind of lease increases at specified intervals?

Graduated

Bill has informed his landlord that he will be moving in 30 days. What action has Bill taken regarding his lease requirement?

He has given notice.

How might a voidable contract become valid?

If the party who has reason to disaffirm the contract elects instead to perform it.

Which statement is FALSE?

In a community property state, if a husband owns property separately from his wife, he cannot sell the property without her permission.

Which of the following is a characteristic of land leases?

Inherently long-term leases

A prospective homebuyer submits a signed offer to buy a house with the condition that the seller pays financing points at closing. The seller disagrees, crosses out the points clause, then signs and returns the document to the buyer. At this point, assuming all other contract validity items are in order, what is the status of the offer?

It's still an offer.

Buyer Jim agreed to a 20-day window to get a survey done. A number of problems have occurred and after 20 days from the signed contract date, buyer Jim has yet to have a survey completed. What is now the status of the sales contract?

Jim has defaulted on his contract.

Landlord Frank terminated Jerry's lease because gross sales did not meet expectations. Jerry agreed to what type of lease?

Percentage Lease

What do we call the right of a person to have the first opportunity to purchase or lease a property?

Right of first refusal

Which party has legal authority to sign a sales contract for a property held in a trust?

The executor of the estate

A lease automatically terminates under which of the following circumstances?

The leased property is foreclosed.

What is an important legal characteristic of an option to buy agreement?

The optionor must perform if the optionee takes the option, but the optionee is under no obligation to do so.

Which of the following summarizes the general terms of a ground lease?

The tenant leases the ground from the landlord and owns the improvements.

In which provision would a landlord describe what activities can take place on the property?

Use of the Premises

A contract that conveys an interest in real estate must

contain a legal description of the property.

The best practice is to ________.

have the buyers take possession on the day of the transaction close.

A lease conveys exclusive use and ________.

it may also restrict some uses.

Jim has part ownership in a house. He has decided to sell his interest. He signs an agreement with a local real estate broker without informing the other two owners. Jim is most likely holding his part ownership as a:

joint tenant.

A contract which neither party can enforce is called

void.