CONTRACTS 2

Buyers are reminded on the contract cover sheet to review all of the following documents EXCEPT which one?

Listing agreement

The Arizona Real Estate Agency Disclosure and Election form describes all of the following types of agency relationships, EXCEPT which one?

Nonagency

Which of the following statements about loan pre-qualification and loan pre-approval is true?

Sellers usually perceive that a borrower with a pre-approval is more serious about buying, since pre-approval requires verifying the borrower's financial status.

Fiona signed a purchase contract to buy Pete's house. Later, Fiona decided to walk away from the transaction to buy a cheaper home on the other side of town. What is likely to happen to Fiona?

She may lose any deposits she's paid and be liable for damages.

The AAR purchase contract cover sheet does NOT tell buyers to _____.

Get negotiation training before submitting an offer

Karen is working with buyer Mandy. What document should Mandy include with her purchase offer?

A Pre-Qualification Form

What is the maximum fine for any lead-based paint disclosure violations?

$10,000

Per the AAR purchase contract, sellers must agree to repair any damages that cost as much as ____ of the purchase price prior to closing.

10%

In what type of financing arrangement does the buyer of a property take over payments on the seller's mortgage?

Assumable mortgage

Ursula wants to take over Ariel's mortgage after she buys Ariel's house. What is this situation an example of?

Assumable mortgage

Which form allows buyers to respond to the result of a home inspection?

BINSR - Buyer's Inspection Notice Seller Response.

Which of the following is contingent upon cancellation of a prior contract?

Backup contract

Which type of loan generally requires a minimal down payment and a mortgage insurance premium for the life of the loan (15 or 30 years)?

FHA financing

Which of the following statements is true if a loan contingency is in effect in a sales contract?

If the buyer can't meet the terms of the agreement due to the inability to obtain a loan, the agreement is terminated.

When should the AAR purchase contract cover sheet be given to buyers?

Prior to submitting any offers

Lilith signed a purchase contract with buyer Kirsten. She receives another offer from Jorge a week before closing. Is Lilith allowed to accept this offer?

Yes, Lilith may accept Jorge's offer as a backup.

Which type of financing occurs when a seller helps to financing the transaction by taking responsibility for a portion of the buyer's loan?

Seller carryback

Sandra must sell her old house before she can buy Ron's house. What addendum does she need to use to convey this information?

Buyer contingency

Which type of financing usually requires a 20% down payment in order to avoid paying for private mortgage insurance?

Conventional mortgage

If Tanya has received a loan pre-qualification, it means which of the following steps has been completed?

Correspondence with a lender, in which she provides some basic financial information

When there are two versions of an original transactional document, the versions are called ____.

Counterparts

All of the following subsections are in the Property section of the AAR purchase contract, EXCEPT which one?

Cure notice period

Marshall is working with multiple clients who are all looking for a similar type of home. He should ______.

Disclose the fact in writing to his clients

Which of the following are NOT included in the Property section of the AAR purchase contract?

Disclosures and remedies

The AAR purchase contract states that leased items may be included in a residential property sale.

False

The AAR purchase contract cover sheet states that buyers should read the title commitment within _____ of receiving it.

Five days

A week after their contract fell through, buyer Julie sued seller Omar for specific performance. What does this mean?

Julie still wants Omar to sell her his property.

Your buyer client, Percy, wants to start searching for his dream house and knows he needs to obtain financing to accomplish that. What's his first step?

Obtain a pre-qualification letter.

The AAR purchase contract cover sheet encourages buyers to hire a qualified professional to inspect aspects of the property, such as a(n) ______.

Pest inspector

Your seller clients, the Kirkpatricks family, complained that the buyer's financing fell through. "The buyer was pre-qualified! How can this happen?" they asked. You answer, "______."

Pre-qualification does not equal pre-approval

If you were representing a seller, what would you look for to see the buyer financing information as part of the purchase contract?

Pre-qualification form from the buyer's lender

Harvey, an Arizona listing agent, has been presented with an offer from a buyer's agent for his client's property. Where should he look in order to see the buyer financing information as part of the bid?

The Pre-Qualification Form

Which of the following statements is true regarding the Sellers Property Disclosure Statement?

The SPDS is a disclosure statement from the seller to the buyer regarding facts about the property, including any material defects/facts, and it is designed to help the seller make these disclosures.

Why is it important to review the purchase contract cover sheet with clients before filling out the rest of the contract?

The cover sheet provides important information and reminders for buyers who plan to submit an offer.

If Emily has received pre-approval for her mortgage loan, it means which of the following steps has been completed?

The loan application and lender verification of data

Which of the following is true about prices and earnest money according to the AAR purchase contract?

The purchase contract specifically states where earnest moneys will be deposited.

Who is responsible for researching and obtaining information about a homeowners association during a transaction?

The seller - not the listing agents responsibility

Georgia and Stan are savvy house hunters who have been pre-approved for a $250,000 mortgage. Which of the following must be true?

They've submitted a loan application, and the lender has verified their financial information.

What type of financing is offered primarily to rural property owners and are guaranteed by the federal government?

USDA financing

Remi offered to purchase Vera's house for $350,000. He paid the earnest money, but couldn't get enough for the down payment by the closing date. Where will the earnest money go now?

Vera is entitled to keep the earnest money because Remi breached their contract.

Which party email addresses may be used to delivery transaction communications in Arizona?

Whichever email addresses the buyer lists on the contract