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WorksheetsPurchase Contracts
Total questions: 27
Worksheet time: 14mins
Which of these is a provision in a contract stating that certain conditions must be met if the contract is to be performed?
rider
express contract
counteroffer
contingency
When it comes to a sales contract, a license holder should do all of the following EXCEPT:
help a client keep on top of deadlines expressed in it
give legal advice about it
fill in all the blanks
explain its language and provisions
Jamie, a buyer's agent, is pretty sure that the listing agent will receive multiple offers on a home. Should Jamie include an escalation clause in his offer?
Absolutely, an escalation clause has very little risk
Maybe, an escalation clause works especially well if the buyer is willing to pay more than their upper limit
Maybe, a multiple off situation does suggest that an escalation clause might be useful
No, an escalation clause should only be used in a buyer's market
Alan, a broker in Georgia, conducts a closing of a real estate transaction. He also makes sure that all parties get a copy of the closing statement. Evaluate his actions.
It is fine that Alan conducted the closing. However, it was not his responsibility to distribute copies of the closing statement.
It is fine that Alan conducted the closing, and that he distributed copies of the closing statement.
Alan should not have conducted the closing. It was also not his responsibility to distribute copies of the closing statement.
Alan should not have conducted the closing. However, it was his responsibility to distribute copies of the closing statement.
If a buyer wants to show good faith, they can di it by presenting the seller with:
a counteroffer
lawful objective
consideration
earnest money
Which of these is a phrase used to communicate when a party to a contract must perform their contractual duties by a specific date and time in order to avoid a breach of contract?
constructive eviction
express contract
time is of the essence
caveat emptor
A sales contract states, "The Offer set forth herein expires on the 3rd day from delivery." Explain this clause.
If the offeree does not accept the offer before that time, then the contract is null and void
This is the "time is of the essence" clause
Expiration is contingent on the due diligence, so if the buyer has not done that before that time, then the contract is null and void.
If the offeror doesn't make a new offer before that time, then the contract is null and void.
A legal description in a sales contract MUST:
include photographs of the property
include a list of all renovations that have taken place on the property
describe a property in a precise and distinct manner
match the address on record at the post office
What is right of first refusal?
a contract that has not been put into words, but is implied through the parties' actions
a right that grants a landlord the ability to evict a tenant for any reason
a law which requires certain types of contracts to be in writing and signed by all parties who are bound by the contract
the right of a party to be the first one to have the opportunity to buy or lease a property, if the owner decides to sale or lease the property
Cody, a broker in Georgia, is helping his client understand a purchase agreement. The client wants Cody to advise him about the legal consequences of defaulting. What should Cody say?
Cody should simply tell the client what he knows.
Cody should refer the client legal counsel. It is against the law for a license holder to give legal advice.
Cody should preface any answer with, "I'm not a lawyer, but..." and then attempt to answer the client's question
Cody should refer the client to legal counsel. In addition, it should be an attorney who fills in the blanks of the contract, not Cody.
Kristin, a sell, has received multiple offers on her home. What should she and her listing agent do?
Tell none of the buyer's agents that there are multiple offers.
Tell all the agents that there are multiple offers to encourage them to submit their highest and best offers.
Tell a select buyer or buyers (but not all of them) about the multiple offers.
All of the answer choices are available options.
Murphy, a seller, has not yet delivered notice of offer acceptance to the buyer. What does this mean?
The buyer can still rescind the offer.
As long as the offer was verbal, the buyer can still rescind the offer.
The buyer can no longer rescind the offer.
As long as it's still before the offer expiration date, the buyer can not longer rescind the offer.
Janie's buyer client wants to make an offer on a new house. How should Janie procure the sales contract?
Janie's client must create their own contract if Janie is to avoid liability
As long as Janie has her real estate license, she can draft the contract herself.
Janie must use a contract form created by a licensed lawyer for this purpose.
Janie is required to use the official sales contract provided by the state.
You are a buyer's agent Your buyer says, "The seller must answer my offer first because it came in first!" What should you say?
Sorry, pal. Offers don't need to be presented in the same order in which they are received.
Not so fast, friend. Remember, it's the last offer that the listing agent has to respond to first.
Right you are, dude! Plus, the seller has to take your offer, because it was full price. Shall we break out the champagne?
You are absolutely right, buddy! I'll call the listing agent and remind them of that.
Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances stay. Joy counters: $250,000, no appliances. She then reconsiders and accepts the first offer. Is Javier obligated to buy the home? Why or why not?
Yes, because Javier never formally withdrew the offer.
No, because the first offer was dead when Joy countered.
Yes, because Joy's counter was for the same amount of money as Javier's initial offer
No, because a buyer can withdraw from a contract for any reason until the closing table.
Fernando is a listing agent. He receives an offer that he thinks his client will reject for being too low. What should Fernando do?
Fernando should present the offer, unless the client has explicitly told him to not present offers below a certain price.
Fernando should still present the offer. There are no exceptions to the "present all offers rule.
Fernando should not present the offer. Even though he and his client have not explicitly talked about low offers. Fernando can trust his intuition.
Fernando should only present the offer if there aren't any better options.
Ramon, a license holder, has sent a notice via email to the license holder on the other side of the transaction. When can Ramon consider the notice officially "delivered and received"?
When it has been sent, per the transmission's accompanying time stamp
when an accompanying hard copy has arrived via mail or fax
when it has been read, per an email stating that from the other agent
when it has been opened, per the transmission of the "read" receipt
Billy Bob Snorton is buying a house. His full, legal name is William Robert Snorton III. As his agent, how should you advise he sign his name to the purchase agreement?
William Robert Snorton III
Billy Bob Snorton
William Robert Snorton
Mr. William Robert Snorton III
A purchase and sale agreement includes the clause, "Time is of the essence." This phrase:
communicates the expiration date of the offer
communicates how the holder of the earnest money will act
communicates to parties of a contract that they must perform their contractual duties by a specific date and time in order to avoid breach of contract
communicates the closing date
A binder may also be called:
counteroffer
contract
net sheet
a letter of intent
A contract has been signed. Both parties have obligations they need to fulfill before the closing, which happens in two weeks. What status is the contract?
executory
executed
unilateral
voidable
Emily, a broker in Georgia, fills in the blank for "legal description" in a sales contract with the property's street address. Can the sales contract be enforced?
No, the street address alone is not enough. In Georgia, you also need the rectangular survey method.
Yes, a street address suffices for a legal description
No, the street address is not enough. Without a legal description, the sales contract can't be enforced.
Yes, a street address suffices for now, as long as it is accompanied by the note that the official legal description will be added later.
Elsie, a listing agent, just received three offers. What should she do?
present the offers one at a time, waiting a day between presenting
only present offers that meet the house's appraised value to her client
present all offers to her client
present all offers made by a buyer with a license holder representing them
What type of contract is a real estate sales contract?
bilateral contract
implied contract
estate contract
unilateral contract
A property is sold "as is" What does that mean?
There are properties which waive the requirement of legal descriptions.
There are properties which do not require a title examination.
There are properties which are subject to an option period.
These are properties which the seller decides beforehand that they will not agree to any repairs and that it will be sold in the present condition.
What is the purpose of a title warranty clause in the sales contract?
The warranty (or promise) is that the title will be conveyed during the due diligence period.
The warranty (or promise) is that the holder of the title will be the closing attorney.
The warranty (or promise) is that the title is good and marketable EXCEPT FOR any listed issues like zoning or easements.
The warranty (or promise) is that the title conveys dual agency.
What does it mean if an offer includes an escalation clause?
The buyer will automatically lower their offer price by a certain increment if the seller doesn't accept the offer within a specified number of days.
The buyer is stating that they are willing to pay the seller's closing costs up tot a certain maximum amount to secure acceptance of the offer.
The buyer will automatically increase their offer price by a certain increment if the seller receives a better offer on the same property.
The buyer is stating that they have submitted their highest and best offer, and that any counteroffers made by the seller will be rejected.
