FREE CTC Contract Review & Risk Management Questions and Answers

Question 1

What is the primary responsibility of a transaction coordinator when reviewing a contract?

Accepted Answer

Review the contract for completeness and legal compliance

Answer

Schedule the inspection

Answer

Provide marketing advice

Answer

Negotiate property prices

Question 2

Why is it important to review contingencies in a real estate contract?

Accepted Answer

To ensure the contract remains valid

Answer

To track property value changes

Answer

To arrange inspections

Answer

To increase the seller's profits

Question 3

What does the term 'earnest money' refer to in a real estate transaction?

Accepted Answer

A deposit made by the buyer to secure the contract

Answer

A fee paid to the seller

Answer

A final payment made after the sale

Answer

A refund given to the buyer

Question 4

What should a transaction coordinator do if there is a discrepancy in the contract?

Accepted Answer

Notify the parties and resolve the issue

Answer

Ignore the discrepancy

Answer

Make changes to the contract on behalf of the seller

Answer

Delay the closing

Question 5

How can a transaction coordinator reduce risk in a real estate transaction?

Accepted Answer

By ensuring accuracy and timely submission of documents

Answer

By rushing the process

Answer

By skipping the inspection process

Answer

By lowering the price of the property

Question 6

What is the role of a transaction coordinator in ensuring compliance with local real estate laws?

Accepted Answer

To ensure all documents comply with legal requirements

Answer

To negotiate commission rates

Answer

To offer legal advice to clients

Answer

To handle the property appraisal

Question 7

Why is contract review a critical part of the transaction coordinator's role?

Accepted Answer

To ensure all terms are accurate and compliant

Answer

To increase the selling price

Answer

To schedule property showings

Answer

To oversee financing

Question 8

What should be done if an issue arises during the closing process?

Accepted Answer

Address the issue promptly and notify all parties

Answer

Postpone the closing indefinitely

Answer

Take no action

Answer

Cancel the transaction

Question 9

What is the transaction coordinator's role after the closing of the transaction?

Accepted Answer

To file the closing documents and complete post-closing tasks

Answer

To market the property to other buyers

Answer

To find new properties for the buyer

Answer

To negotiate the buyer's commission