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WorksheetsCH 09 - Real Estate Contracts
Total questions: 54
Worksheet time: 2hrs 47mins
A contract in which mutual promises are exchanged at the time of signing or execution is termed:
Multilateral
Unilateral
Bilateral
Promissory
For contracts in general, except for those of the sale of real property, essential elements include all of the following EXCEPT
Competent parties
Offer and acceptance
Legality of object
Writing
a false representation is deemed to be fraudulent when
I: The party making a false representation know it to be false
II: The party making a false representation does NOT know if the statement is true or false, but he should have known
I ONLY
II ONLY
BOTH I AND II
NEITHER I OR II
Which of the following is the basis of duress?
Fear
Mistake
Indefinitiveness
Illusion
a contract to sell real property may be terminated by each of the following EXCEPT:
For performance
Breach of contract
Mutual agreement
Death
which of the following has the effect of terminating contracts?
Consideration
Bankruptcy
Exercise
Assignment
in the event a Seller defaults in his obligation to convey title to the property as agreed-upon in a contract sale, which of the following remedies is available to the purchaser?
Sued for breach of contract
Sued for Specific performance
Suit for compensatory damages
Sued for breach of contract. Specific performance, and compensatory damages
all of the following contracts are unilateral EXCEPT:
Contract for the sale of real estate
Open listing contract
Option to purchase contract
Contract to pay $1,000 if someone will paint your house
a contract can be avoidable if there is:
I - Duress
II - Mutual mistake
III - Willful misrepresentation
III ONLY
II AND III
I AND II
I, II, AND III
what type of real estate contract must be in writing per the statute of frauds?
An exclusive right to sell listing agreement
An exclusive right to represent Buyer agreement
An offer to purchase and contract
An exclusive right to represent Seller agreement
a substitution for a new contract for the former one is called what
Commingling
Revocation
Reversion
Novation
a contract clause that stipulates the dates are to be strictly adhered to is the ___ clause
due diligence
assignment
time is of the essence
expressed contract
which of the following is NOT required to be in writing according to the Statute of Frauds?
Listing contract
Offer to purchase
Installment land contract
Leases for more than three years
a complete transfer of contractual rights and privileges is known as what?
Novation
Specific performance
Assignment
Subsequent modifying agreement
All of the following are essential to the formation of a contract, EXCEPT:
offer
acceptance
consideration
signatures
Although we require signatures on certain real estate contracts a signature is not a required element to form a basic contract.
True
False
Signature are always a required element to form a basic contract.
True
False
Formation of a contract requires:
I - mutual assent (including offer and acceptance)
II - competent parties
III - signatures
IV - consideration
V - must be for a legal purpose.
I, II AND III
II AND III
III, IV, AND V
I, II, IV, AND V
Which of the following statement(s) is/are true?
l. In a breach of a sales contract, the earnest money deposit is considered liquidated damages.
ll. In a breach of a sales contract, liquidated damages are an agreed upon amount of money the parties agree to accept in the event of breach.
l only
ll only
Both l and ll
Neither l nor ll
Which of the following document(s) would be covered by the NC Statute of Frauds? l. Listing agreement ll. Buyer agency agreement
l only
ll only
Both l and ll
Neither l nor ll
a right or interest in real property to be in writing in order to be what?
valid
enforceable
recorded
actual
The statute of frauds requires written, enforceable contracts that contain
a right or interest in real property
employment agreements such as a listing agreement
employment agreements such as a buyer broker agreement
a right or interest in personal property
Which of the following documents must be written under the Statute of Frauds in order to be enforceable in a court of law?
Offer to purchase and contract
Exclusive right to sell listing agreement
Exclusive right to represent buyer
Short-term leases of less than three years
Employment agreements (such as listing agreement and the buyer broker agreement) are
not a right or interest in real estate subject to the statute of frauds, but need to be in writing due to commission rules.
a right or interest in real estate subject to commission rules, but need to be in writing due to the statute of fraud.
a right or interest in real estate subject to the statute of frauds, but need to be in writing due to commission rules.
not a right or interest in real estate subject to the statute of frauds, but do not need to be in writing due to commission rules.
The Offer to Purchase and Contract must be in writing pursuant to ___ because it deals with the conveyance of a right or interest in real estate.
the statute of frauds
commission rules
the Connor Act
rules established by the National Association of REALTORS®
Only leases ___ are subject to the statute of frauds.
longer than three years
less than three years
longer than two years
less than two years
Employment agreements are not a right or interest in real estate subject to the statute of frauds, but need to be in writing due to commission rules.
True
False
Employment agreements need to be in writing due to commission rules.
True
False
The Offer to Purchase and Contract must be in writing pursuant to the statute of frauds because it deals with the conveyance of a right or interest in real estate.
True
False
Which of the following are true
The Offer to Purchase and Contract must be in writing pursuant to the statute of frauds because it deals with the conveyance of a right or interest in real estate.
The Exclusive Right to Represent Buyer Form must be in writing pursuant to the statute of frauds because it deals with the conveyance of a right or interest in real estate.
The Exclusive Right to Sell Listing Agreement must be in writing pursuant to the statute of frauds because it deals with the conveyance of a right or interest in real estate.
The Offer to Purchase and Contract must be in writing pursuant to the commission rules because it deals with the conveyance of a right or interest in real estate.
A listing broker schedules an appointment to present a purchase offer to the seller. The seller has serious health problems and her son is attending to her health care. When the broker arrives, he finds the seller's son and daughter-in-law present. In the broker's presence, both persistently urge the seller to accept the offer. The seller is reluctant to accept since the offer is substantially less than the list price. If the seller accepts the offer under these circumstances, she may later claim that:
the broker should not have brought such a low offer for her property
she was under undue influence from her son and daughter-in-law, and therefore, the contract is voidable
the broker defrauded her by allowing her son and his wife to see the offer he brought to her
her consumer protection rights under anti-trust laws were violated by her son and daughter-in-law
A contract is voidable by party if it was signed under duress. Duress is undue influence.
True
False
A man has posted a $100 reward for anyone who returns his missing dog. This is an example of:
a unilateral contract
a bilateral contract
an implied contract
an executed contract
The seller unintentionally misrepresented that the soil of a lot was suitable for the construction of a building at the time the buyer was negotiating the purchase of the lot for the site of a new home. After entering into a contract to purchase, the buyer learned that contrary to the seller's statement, the soil was unsuitable for construction. This is an example of a contract that is probably:
binding on the buyer due to the doctrine of caveat emptor
voidable by the buyer because of the seller's mistake
voidable by the seller because of the mistake
voidable by neither party because this was a harmless error
The law requiring real estate contracts to be in writing in order to be enforceable is the:
writ of attachment
statute of frauds
statute of limitations
parol evidence rule
The legal remedy to enforce the terms of a contract is known as:
an injunction
a lis pendens
a writ of attachment
specific performance
The term "rescission" is best defined as:
change
nullification
substitution
subordination
Which of the following are true?
If a party cancels a contract they may be subject to certain penalties or lose certain deposits. When rescission occurs, all monies are returned to the buyer and both parties are relieved of their obligations under the contract.
If a party nullifies a contract they may be subject to certain penalties or lose certain deposits. When cancellation occurs, all monies are returned to the buyer and both parties are relieved of their obligations under the contract.
If a party cancels a contract they will never be subject to certain penalties or lose certain deposits. When rescission occurs, some monies are returned to the buyer and both parties are relieved of their obligations under the contract.
If a party cancels a contract they may be subject to certain penalties or lose certain deposits. When substitutions occurs, all monies are returned to the buyer and both parties are relieved of their obligations under the contract.
An executory contract is one in which:
all of the terms and conditions have been performed
one or more of the parties is in breach of the agreement
there are still essential elements to be performed
the contract has expired
An executed contract is one in which:
all of the terms and conditions have been performed
one or more of the parties is in breach of the agreement
there are still essential elements to be performed
the contract has expired
A buyer makes an offer to purchase a home and states in the offer that the offer will remain open for the seller's acceptance until April 6th.
On April 4th the buyer changes their mind and notifies the seller that they are withdrawing their offer. On April 5th the seller accepts the original offer. Which of the following statements is correct?
The buyer is bound because they stated that the offer would remain open until April 6th.
The buyer is not bound because they withdrew their offer prior to being notified of the seller's acceptance.
The acceptance by the seller on April 5th created a binding and enforceable contract.
Once an offer is made it cannot be withdrawn.
Mary made an offer to purchase John's property for $295,000. John replied in writing to Mary that he would sell the property for $300,000. Mary refused to pay the $300,000 and did not respond to John. After reconsidering, John notified Mary that he was accepting the $295,000 offer. Which of the following is correct.
John's response of $300,000 constituted a counteroffer which terminated Mary's original offer and therefore there is no agreement between the parties.
Mary and John have a valid and binding contract for $295,000.
Because Mary failed to take any action regarding John's initial reply her original offer remained open.
Mary's offer remains open indefinitely and can always be accepted by John unless she included a deadline for acceptance in her offer.
A valid listing agreement may be terminated for any of the following reasons, EXCEPT:
sale of the property
expiration of the individual listing agent's license
agreement of the parties
destruction of the premises
According to North Carolina Real Estate Commission Rules, all of the following are required to be part of a listing agreement, EXCEPT:
signature of all parties
the licensee's license number
a definite termination date
an automatic renewal clause
Earnest money deposits, when paid in the form of a personal check given on an Offer to Purchase and Contract, must be deposited in an escrow account:
no later than three banking days after acceptance of contract
no later than 72 hours after receipt of money
no later than three business days after receipt of the money
no later than 72 hours after acceptance of contract
A voidable contract can be legally consummated by the parties
True
False
A voidable contract can not be legally consummated by the parties
True
False
A voidable contract can never be consummated
True
False
A voidable contract can be consummated
True
False
Of the following statements regarding voidable contract, which is NOT correct
A voidable contract can be voided by one or more parties
A voidable contract can be legally consummated by the parties
A voidable contract can never be consummated
A voidable contract results from failure to meet some legal requirement in the buyer and seller agreement
Contract for the sale of real estate
Multilateral
Unilateral
Bilateral
Promissory
Open listing contract
Multilateral
Unilateral
Bilateral
Promissory
Option to purchase contract
Multilateral
Unilateral
Bilateral
Promissory
Contract to pay $1,000 if someone will paint your house
Multilateral
Unilateral
Bilateral
Promissory
