Contracts Progress Exam 4

Assume an offer has been accepted and the acceptance has been communicated to the buyer. The buyer then changed his mind and decided not to purchase the property. Which of the following is true?

• The broker could sue the buyer for the commission

• The broker could not sue the buyer for a commission but could bring suit to require performance of the contract

• The seller could sue for liquidated damages if the parties agreed to liquidated damages in the contract

• None of the above are correct statements

A real estate broker included the following clause in her standard listing contract: "In consideration of execution of the foregoing, the undersigned broker agrees to use diligence in procuring purchaser." This is:

• superfluous and unnecessary in current contracts.

• important to the creation of a bilateral contract.

• important to the creation of a unilateral contract.

• important according to the Statute of Limitations.

A husband and wife have been searching for a new home. One day when the husband was at work, his wife learns that a new listing has appeared on the MLS. Her agent calls her and urges her to come see it ASAP. She goes to view the property, without her husband, loves the house but cannot reach her husband at work to sign an offer on the home. If the seller accepts the offer, the contract is:

• void.

• voidable.

• invalid.

• valid.

A broker is preparing a deposit receipt. Which of the following can be disregarded for the moment and be decided during the escrow period?

• Manner of payment of assessment bonds

• Manner of taking title

• Proof of title insurance

• Financing arrangements

A listing contract has the statement, "The undersigned broker agrees to use diligence in procuring a buyer." This is used for what following reason?

• Means nothing and is not required

• To make it a bilateral contract

• To make it a unilateral contract

• None of the above

Which one of the following clauses is always in a deposit receipt?

• Alienation clause

• Subordination clause

• Subrogation clause

• Executory clause

A broker received an earnest money check made out to "Best Escrow" from the buyer that was to be held uncashed until the offer was accepted. The broker was unable to present the buyer's offer because the seller was out of town for the day. What should the broker do with the check?

• Deposit the check in the broker's account

• Open escrow and deposit the check

• Hold the check uncashed and wait for the seller to return to present the offer

• Return the check to the buyer

In a real estate contract, the promise to use "due diligence" is made by whom?

• The buyer

• The seller

• The escrow agent

• The listing broker

An Exclusive Authorization and Right to Sell Listing just entered into can be described as:

• a cash agreement to purchase properties that are bilateral.

• a bilateral executory contract.

• a land contract whereby licensee may obtain commissions from both the buyer and seller.

• all of the above

Mr. Daniels made a written offer to purchase a home through Broker Starr. However, Daniels died in a car accident before Broker Starr could notify him of an unqualified, signed acceptance by the seller. Which of the following statements is most correct?

• The death of Daniels constituted a revocation of the offer

• The acceptance does not have to be communicated to the buyer

• Notification of acceptance to the executor would bind the Daniels estate

• The contract would not be binding because the deed had not been delivered into escrow