The cte shop study set unit 11

Which of the following best describes a bilateral contract?

A contract that involves an exchange of consideration between two parties

Ezra's lease on his condo includes an option to purchase. He told his landlord, Sherm, that he's ready to purchase the condo, and they've negotiated a purchase price and closing date. What kind of contract is this?

Bilateral

Which of the following is a true statement about the MLS and sellers?

It's rare for sellers to decline advertising their property on the MLS

Mardee represented condo owner Carol, and they signed an exclusive agency listing agreement. If Carol found her own buyer, would she owe Mardee a commission?

No, because Carol procured the buyer.

When does partial performance of a contract occur?

One or both parties have completed only a portion of the terms agreed to in the contract.

When can specific performance be enforced under a sales contract?

One party didn't meet the terms of the contract in the specified time frame, and is now being required to do exactly what was agreed to in the contract.

The owner of ABC Construction entered into a contract to build two homes for brothers Jack and John. The contract specified that the homes must be completed by April 1. ABC finished the homes on March 30. Of what is this an example?

Performance

Which Florida court ruling stated that an as-is real estate contract did not protect sellers from fraudulent non-disclosure?

Rayner v. Wise Realty Co.

What is a major benefit to a buyer for signing a buyer representation agreement?

Representation

Which of these letter combinations can be used to recall the types of real estate contracts covered by the statute of frauds?

SOLLD

Which of these sentences accurately describes the phrase "statute of limitations"?

There are deadlines for certain types of legal action.

When a seller counters the buyers' original offer, what options do the buyers have?

They can accept, counter, or reject the offer.

Which of these sentences accurately lists rules for interpreting a contract?

Typed text takes precedence over pre-printed text, and spelled-out numbers (e.g. four) take precedence over numerals (e.g. 5).

Hank leases 150 acres from Sara and Jesse. He has an option contract attached to his lease, with an option to purchase that can be exercised within the next two years. What type of contract is this?

Unilateral

"I get why YOU want a buyer representation agreement," your buyer tells you. "But what's in it for me?" You answer ____________.

Without it, you are unrepresented."

The appraisal on Jean's property came in at $22,000 less than the agreed-upon sales price, so the buyer, Thomas, wants to renegotiate the terms. If they can come up with a new price that is satisfactory to both parties, what will they use to document this?

Amendment

Sanjeev leases a house from Clara, and the lease has an option contract attached that permits Sanjeev to buy the house if he chooses to exercise the option within three years. How large does the option fee need to be in order to be legally binding?

Any amount agreed to by the parties

Which of the following scenarios is an example of novation?

Doug is buying Norm's farm, but has a serious accident and no longer wants to own a farm, so his daughter Linda decides to buy the property. Norm agrees to the substitution of Linda for Doug in the purchase contract, effectively creating a new contract.

Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it on the market while she waited to find out if her neighbor was going to buy. In order to receive the best possible representation but avoid paying a commission if her neighbor buys the property, which type of listing agreement would best suit Janice's needs?

Exclusive agency

From a buyer's perspective, what's the primary benefit of signing a buyer agency agreement?

It ensures a higher level of service.

In an addendum to the purchase and sale contract, the seller agrees to paint the house before conveying the house to the buyer. The weather changes, and the seller is unable to finish painting the house before closing. Of what is this an example?

Partial performance

Sue Ellen has a contract to buy Roger's house, which she has always admired, when Roger decides he's ready to move to a senior living community. After Roger finds a suitable senior apartment and moves, Sue Ellen writes a check for the agreed-upon amount, and Roger transfers the deed to her. What is happening in this scenario?

Performance

You sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln. Assuming that time machines don't actually exist (for now), what type of contract is this?

Void

What does the parol evidence rule say about contracts?

The terms agreed to in a written contract are the only terms relating to that contract.

Sellers must provide homebuyers with _______ days to conduct a risk assessment for lead-based paint or lead-based paint hazards.

10

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

Rick is a licensee who's meeting with a prospective new client, Kate. Kate is looking to purchase a home, and would like Rick to represent her throughout the process. Which agreement should Rick and Kate enter into?

Exclusive right-to-represent

In which of the following scenarios is impossibility of contract performance occurring?

Due to circumstances beyond their control, the parties can't legally or practically do what they've agreed to do.

To meet the requirements of the statute of frauds, an agreement must clearly identify the contract's subject matter, present the contract's essential terms and conditions, and ______ to be enforceable.

Identify the contracting parties

Which of the following describes a contract that exists based not on words, but on the parties' actions or behaviors?

Implied

The EPA-approved pamphlet, "Protect Your Family From Lead in Your Home," provides buyers and renters with ______.

Information about identifying and controlling lead-based paint hazards

Which type of contract is missing from this list of contracts covered by the Florida statute of frauds: sales contracts, option contracts, listing agreements for a term exceeding a year, deeds and mortgage instruments, and _____?

Lease agreements for a term exceeding a year

Which of the following agreements does NOT have to be written down in order to be legally binding?

The Lees rent out their basement to some college students for three months

What's one of the required elements of a valid option contract?

The amount of consideration the optionee is paying the optionor

Your buyer client Haley is making an offer on her first home Although she can afford the full listing price, you advise her to offer 10% below the list price. What's a good reason for doing so?

The market is cold

Novation of contract

when a new contract is created for the same purpose as a previous contract but with all previous contract edits and amendments incorporated.

In what type of market could a buyer's strategy be to ask the seller to pay closing costs?

Cold market

Licensee Raina is happy that her seller client's home is under contract, and closing's just a few days away. That is, until Raina discovers a material defect on the property that hasn't been disclosed to the buyer. What should she do?

Notify her client of the defect and disclose it to the buyer.

In a neutral market, what pricing strategy may generate interest in the property, possibly prompting multiple offers?

Pricing below market value

Commission disputes may occur after a property sold via an open listing when there is debate over who was the ______.

Procuring cause

What's the main point of the statute of frauds?

Real estate purchase and sale contracts must be in writing to be enforceable.