What is the primary purpose of a sales contract in real estate?

• To prepare an offer from a buyer to a seller

• To provide legal advice to buyers

• To draft addenda using non-standard language

• To evaluate the contract terms

What should be done if a specific item doesn't apply when filling in a preprinted sales contract?

• Leave the item blank

• Write N/A in the blank

• Cross out the item

• Highlight the item

What is a land contract?

• A type of seller financing

• A type of mortgage

• A type of lease agreement

• A type of insurance policy

What is one advantage for sellers using a land contract?

• Easier to repossess the property if the buyer defaults

• Higher interest rates

• Longer repayment terms

• More legal power over the buyer

What is the goal of preparing a sales contract?

• To make it a legally binding contract of sale

• To provide legal advice to the seller

• To draft addenda using non-standard language

• To evaluate the contract terms

What should agents do if there is room for interpretation in a sales contract?

• Courts will usually rule against the party who prepared the contract

• Leave the interpretation to the buyer

• Ignore the interpretation issues

• Rewrite the contract

What is one disadvantage for buyers using a land contract?

• They forfeit everything already paid if they default

• They have more negotiation power

• They can use the property as collateral for other loans

• They have more legal power over the seller

What does the doctrine of equitable conversion state?

• The buyer retains legal title of the property.

• The seller retains legal title of the property.

• The lender retains legal title of the property.

• The agent retains legal title of the property.

Which of the following is NOT a type of contingency mentioned in the document?

• Mortgage contingency

• Sales contingency

• Appraisal contingency

• Financial contingency

What does a mortgage contingency permit the buyer to do?

• Terminate the agreement and get the earnest money back if the buyer can't obtain financing.

• Terminate the agreement if the property does not appraise for the sale price.

• Terminate the agreement if the buyer's current property does not sell.

• Terminate the agreement if the inspection reveals issues.