REX 7600 Unit 10
An offer to purchase real estate can be terminated by all of the following
failure to accept the offer within a prescribed period, acceptance of the offer by the offeree after making one change in terms, death of the offeror or offeree.
The optionee in an option to purchase real estate
has no obligation to purchase the property
A seller receives two offers to purchase her North Carolina property at the same time. One offer is for full listing price but wants a delayed closing that is not in the seller's best interest. The second offer has terms that are very agreeable to the seller but offers less than full price for the property. Without any knowledge or consent of the first offeror, the listing agent contacts only the second offeror and tells them that there is a full price offer on the table and asks if they would like to increase the purchase price in their offer. Listing agent is
in violation of Commission Rules because he revealed offer terms
Shopping offers
is a practice in which home seller's real estate agent discloses prices and terms of an offer to competeing buyers, in an effort to get higher bids; prohibited in NC
A married couple offers in writing to purchase a house for $320,000, including the draperies, with the offer to expire on Saturday at noon. The owners reply in writing on Thursday, accepting the $320,000 offer, but excluding the draperies. On Friday, while the couple considers this response, the owners reconsider the original offer and decide to accept the original offer in writing, including the draperies. Since it is before Saturday at noon, the couple
is not bound to buy the house because they are not under contract
If a broker receives multiple offers on a listing, the broker must
present them all at once
During the buyer's due diligence period in the NCBA/NCAR 2-T Offer to Purchase and Contract, the buyer is entitled to
renegotiate any term in the contract
An NCBA/NCAR 2-T Offer to Purchase and Contract offered for use by a real estate broker I. must not include a disclaimer of liability on the part of the broker. II. can include any agent compensation that is being split with the buyer in the contract. A. I only B. II only C. Both I and II D. Neither I nor II
A. I only
The effective date of a sales contract is defined as the date that
Notification of acceptance is given to the other party
If an owner takes a property off the market for a definite period of time in exchange for some consideration, but grants the right to purchase the property within that period for a stated price, this is called
Option
A man signs a contract under which he may purchase a house for $800,000 any time within the next three months. The man pays the current owner $5,000 at the time the contract is signed. Which of the following best describes this contract?
Option to purchase
Communication of offers and acceptance can be
Oral, written, mailbox rule, directed to the party's agent
Which of the following statements is TRUE of the due diligence fee in the NCBA/NCAR 2-T Offer to Purchase and Contract?
The due dilligence fee is applied to the purchase price at closing
Which of the following is TRUE of a right of first refusal given to the tenant of a rental house?
The landlord must offer to sell the house to the tenant first, if the landlord decides to sell the house
To sell his property the seller has entered into a contract. While the sale is pending, the listing agent receives another offer to purchase the property from a different firm. Which of the following statement is TRUE?
The listing agent must present this offer to the seller
The buyers offer is made on the condition that the buyer's inspection indicates that all working systems of the structure are up to current code. This condition is called
a contingency
Per the NCBA/NCAR 2-T Offer to Purchase and Contract, if the seller commits a material breach and the buyer elects to terminate the contract, the buyer is entitled to
a refund of paid earnest money, due diligence fee, and all reasonable costs of the buyer's due diligence
A preprinted North Carolina sales contract provided for use by a real estate broker may NOT contain a provision about
broker compensation
According to North Carolina Real Estate Commission rules, a valid sales contract can contain all the following EXCEPT
brokerage compensation split
A real estate sales contract becomes valid when
communication of acceptance is given to the offeror or the offeror's agent
The sales contract says the buyer will purchase only if an attorney approves the sale by the following Saturday. The attorney's approval is a
contingency
Which of the following statements is TRUE about the Due Diligence Period in the North Carolina standard offer to purchase and contract?
during this period, the terms of the contract can be renegotiated.
The buyer's offer is made on the condition that the buyers is able to obtain an 80% institutional loan at a specified interest rate by a specified date. If the buyer notifies the seller in writing of the inability to obtain such a loan, the buyer will
not have to to purchase the home but will entitled to a full refund of the earnest money deposit
A buyer makes an offer on a $15,000 property and gives an earnest money deposit of $1,500 in the form of a personal check. The buyer then withdraws the offer before the seller can accept it. The broker should dispose of the earnest money by
returning it to the buyer
When a valid purchase contract is fully executed by the seller and the buyer, the
seller transfers equitable title to the buyer
A broker has an exclusive right-to-sell listing on a building. An offer to purchase the building is received while the owner is out of town. The offer requires a commitment from the seller before the seller is scheduled to return to the city. Under these circumstances, the
the broker must obtain the signature of the seller to effect a contract
The listing broker receives an earnest money deposit with a written offer to purchase that includes a 10-day acceptance clause. On the fifth day, before the offer is accepted, the buyer withdraws the offer and demands the return of the earnest money deposit. In this situation,
the buyer has the right to revoke the offer at any time until it is accepted and is entitled to recover the earnest money
On Monday, the seller receives a written offer on his vacant lot for $52,000. On Tuesday, the seller counteroffers for a sales price of $54,500. On Friday, the seller withdraws the counteroffer and accepts the original offer of $52,000. Under these conditions,
there is no valid agreement because the seller's counteroffer was a rejection of the buyer's original offer
Under an installment land contract, the title to the property is held by the
vendor
During the Due Diligence Period in the North Carolina standard offer to purchase and contract, the buyer did not receive final loan approval but chose not to terminate the contract based on favorable communications from the lender. A week before closing, the buyer's loan application is denied. If the buyer terminates the contract at this point, the buyer
will forfeit the earnest money deposit, because it would be a buyer breach
If a buyer wishes to make an offer on property that is already under contract, the buyer should ask his broker to add which addendum?
Back-up Contract Addendum
A for-sale-by-owner signs a written offer to purchase without making any changes to the offer. The seller then mails the signed offer to the buyer by express mail without any further contact with the buyer. Before receipt of the envelope from the seller, the buyer changes her mind about purchasing the property and calls the seller to withdraw the offer. Which of the following statements is TRUE?
Buyer cannot withdraw offer because she is already under contract
When a buyer and seller have entered into an installment land contract, I. the seller retains an interest called legal title. II. the buyer acquires an immediate interest in the property known as equitable title. A. I only B. II only C. Both I and II D. Neither I nor II
C. Both I and II
Which of the following statements is/are TRUE when an offer to purchase has been signed by the buyer and then given to the seller's broker with an earnest money deposit check for the seller to consider? I. The earnest money check must be deposited immediately into the listing firm's trust account. II. If the buyer withdraws the offer before it is accepted by the seller, the earnest money will be forfeited. A.I only B. II only C. Both I and II D. Neither I nor II
D. Neither I nor II
Under contract terms, one party will pay the property owner $1,500 a month for 10 years. The property owner will continue to hold legal title to the property. That party will live on the property and pay all real estate taxes, insurance premiums, and regular upkeep costs. What kind of contract is in place?
Installment land contract
Which of the following statements is TRUE of a conventional option to purchase contract?
It must be exercised within a specified time period by the optionee
Under the NCAR/NCBA Offer to Purchase and Contract 2-T, which of the following BEST describes the due diligence fee?
Legal consideration
At 1:30 pm, a broker faxed an offer to purchase to her seller client. At 2pm after considering the offer, the seller called and informed his agent that he wanted to increase the earnest money by $1,000. To make the seller's requested change for additional earnest money, the seller's agent need only I. Change the term in the original offer, initial, and date the change on behalf of the seller. II. Prepare a new offer and, with the seller's permission, sign on behalf of the seller. A. I only B. II only C. Both I & II D. Neither I nor II
Neither I nor II
An offer to purchase is submitted on a listing while the property owner is out of town on business. The offer is electronically submitted to the owner and the owner signs and returns the offer with no changes in terms. If the signed offer is then electronically submitted to the listing agent who calls the buyer's agent with this information, which of the following statements is TRUE?
The seller is under contract to sell his property since electronic signatures are binding
The listing agent received a full price offer that she faxed to the out-of-town seller. The seller signed the faxed copy, and faxed the signed copy back to the listing agent. The agent faxed the signed offer to the buyer's agent. Has contract been formed?
Yes, because the Uniform Electronic Transaction Act states that faxed signatures are as binding as ink signatures.
The amount of earnest money deposit is determined by
an agreement between the parties to the contract