Chapter 7 contracts

Which type of deed offers the greatest protection to the grantee (buyer)?

• Quitclaim deed

• General warranty deed

• Contract for deed

• Option contract

A contract that gives one party the right, but not the obligation, to purchase a property within a specified time frame is called a(n):

• Sales contract

• Option contract

• Contract for deed

• Gross lease

In a real estate transaction, earnest money serves what primary purpose?

• Pays for the property taxes

• Demonstrates the buyer's good faith intention to complete the purchase

• Covers the cost of the appraisal

• Is the final payment to the seller

Which of the following is NOT a requirement for a valid contract?

• Offer and acceptance

• Consideration

• Earnest money

• Legal capacity

A contract for deed involves which of the following?

• The seller financing the purchase for the buyer

• The buyer taking possession before making full payment

• Legal title remaining with the seller until the final payment is made

• All of the above

The legal concept of acquiring title to someone else's property through open and notorious use for a statutory period is known as:

• Eminent domain

• Adverse possession

• Easement by prescription

• Encroachment

A quitclaim deed conveys:

• Full ownership rights and warranties

• Only the grantor's current interest in the property, with no warranties

• A life estate interest

• An easement

In a gross lease, who is typically responsible for paying property taxes, insurance, and maintenance?

• The landlord

• The tenant

• Both the landlord and tenant equally

• None of the above

A net lease typically requires the tenant to pay some or all of which expenses?

• Property taxes

• Insurance

• Maintenance

• All of the above

A sales contract in a real estate transaction sets out the:

• Terms and conditions of the sale

• History of ownership of the property

• Zoning regulations for the property

• Environmental conditions of the property