WorksheetsChapter 7 contracts
Total questions: 17
Worksheet time: 9mins
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
Title to real estate is best defined as:
The right to occupy the property
The legal evidence of ownership
A claim against the property
Permission to use the property
Which of the following is NOT typically included in a deed?
Names of the grantor and grantee
Legal description of the property
The amount of the mortgage
Signature of the grantor
Which of the following are the five basic elements of a contract?
Voluntary, An agreement or promise, Legally competent parties, Legal consideration, Legal act
Offer, Acceptance, Consideration, Capacity, Legality
Mutual Consent, Offer, Acceptance, Consideration, Legal Purpose
Agreement, Consideration, Capacity, Legality, Written Form
What does it mean for a contract to be voluntary?
It is entered into as a freewill act by all participating parties, without coercion or threats.
B) It is signed in the presence of a notary
C) It is legally binding only if it is in written form.
D) It requires the approval of a court.
What is an express contract?
An agreement presumed to exist because of the parties’ action
A contract where only one party is legally obligated to perform
A lender’s agreement to postpone foreclosure proceedings
What is forbearance in the context of contracts?
An agreement presumed to exist because of the parties’ actions
An agreement put into words (written or spoken)
An agreement presumed to exist because of the parties’ actions
An agreement to not perform in a particular manner
What is a bilateral contract?
An agreement presumed to exist because of the parties’ actions
A contract where only one of the parties is legally obligated to perform
A contract where each party makes a binding agreement to perform
A lender’s agreement to postpone foreclosure proceedings
