Law of Contracts Final Exam Part 1

Brianna is selling her home to downsize and live closer to her grandchildren. She has been looking at a property to buy, and while the sellers are eager to close the sale, Brianna has made it clear she won't buy until her current property is sold. This is an example of a(n):

• sale of another property contingency

• appraisal contingency

• financing contingency

• inspection contingency

What is typically added to a contract before it's signed and specifies supplementary information not previously included in the contract?

• addenda

• codicils

• affidavits

• amendments

Natalea has one of her listings under contract. The contract calls for possession at closing. Now the seller asks if she can stay for three days after closing. The buyer orally agrees. What does Natalea need to do now?

• prepare an amendment and add the Seller’s Temporary Lease Agreement

• change the terms in the original document under special provisions

When a lender agrees to allow the borrower to sell the property and accept less than a full pay off amount, it is referred to as a(n):

• short sale

• alternative payoff

• hardship payoff

• short payoff

All of the following legislation was designed to protect consumers from unfair lending practices EXCEPT:

• Americans with Disabilities Act

• Equal Credit Opportunity Act

• Truth in Lending Act

• Real Estate Settlement Procedures Act

What happens when the property and the buyer have both met the lender’s underwriting requirements?

• The loan is approved.

• The underwriting process begins.

• The buyer is pre-qualified.

Which of the following is the promise to pay on a mortgage loan?

• promissory note

• deed of trust

• lien

• mortgage

Which of the following documents are considered proof of ownership?

• the deed

• the title policy

Although it is NOT a physical document, the actual ownership of a property is signified by who holds the:

• title

• deed

• deed of trust

• notice

Jack died without a will. His property is disposed of through the laws of descent. That is considered:

• involuntary alienation

• adverse possession

• eminent domain

• voluntary alienation