NEW
Font size
WorksheetsLaw of Contracts 9-14
Total questions: 20
Worksheet time: 10mins
Martha 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, Martha 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
Mary 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 Mary 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
Loan approval consists of two different approvals. What are they?
approval of the buyer and approval of the property
approval of the appraisal and approval of the seller
approval of the survey and approval of the buyer
What, if anything, must happen when an inspector reports a problem?
No one is technically required to repair the problem.
The seller must repair the problem.
Examples of ongoing expenses that need to be split fairly between the buyer and seller of the property through prorations include all of the following EXCEPT:
homeowners insurance
HOA dues
real estate taxes
utility charges
The effective date is determined by:
the final date of acceptance
when the seller accepts an offer
when the first draft of the contract is given to clients
when the contract is put into writing
Always fill in the contact information accurately.
Advise sellers that they must accept the offer that is received first.
Which of the following is NOT a good contract practice?
Get the final contract in writing.
Set closing 30-45 days out
According to TREC, how many days do buyers have to deliver their termination-option fee?
three calendar days
three business days
The statute of frauds stipulates that:
All contracts that involve the sale or transfer of real estate, debts, specific obligations, and the sale of goods (exceeding $500) must be in writing.
All contracts that cannot be completed within six months must be in writing.
A legal description MUST:
describe a property in a precise and distinct manner
match the address on record at the post office
A leasing of bare, undeveloped land
Variable Lease
Index Lease
Ground Lease
Graduated Lease
The process and act of transferring property from one party to another
Alienation
Severance
Escheat
Forbearance
