FREE Real Estate Sales Process Question and Answers
By law, brokers must open an escrow account in the real estate office where the escrow records are kept within seven (7) days of receiving money that belongs to someone else.
Explanation:
Must be deposited no later than the end of the following working day after receipt. With the written consent of both the buyer and the seller or the lessee and the lessor, refrain from putting money into an escrow account by the deadline pending the seller's or lessor's acceptance of the offer if money from another party has been offered to the broker in the form of a check. After the offer has been accepted, the broker has one business day to put the funds into the escrow account.
In the real estate industry, a temporary loan that can be used to finish the down payment required for the settlement of the new property as a result of the money that hasn't been released from the sale of the old home is known as an unsecured loan.
Explanation:
The danger associated with a swing loan is that the borrower or buyer may be required to make payments on three different real estate loans:
1) a mortgage on an older property that is still unoccupied;
2) a mortgage loan required to buy a new home
3) a swing loan required to transfer over the cash from the older, unoccupied home to be used as a down payment on a new home
A "contract binding offer" is an advance payment made by the buyer in accordance with the agreement of sale as a good faith offer to the seller of the property.
Explanation:
It is known as an Earnest Money Deposit
The "agreement of sale" is the most significant contract in the selling of real estate.
Explanation:
The requirement that the seller give clear title using the form of deed specified in the contract in exchange for the indicated purchase price is one of the most crucial clauses. A legal description of the property must also be included in the contract.
All registered real estate agents are required to produce and provide to any buyer a fair, accurate written estimate of closing costs prior to the buyer signing this agreement of sale and all rules and regulations of the Pennsylvania Real Estate Commission.
Explanation:
When you hire a broker to assist you in purchasing a home, you enter into a buyer-broker agreement. You cannot employ a broker to find a home and then avoid them or sign with another broker once you have signed the agreement.
The seller must assure the buyer of a clear title to the asset being sold in order to comply with the "statute of frauds" requirement.
Explanation:
The Agreement of Sale shall be in writing pursuant to the "Statute of Fraud." Every agreement must be signed and put in writing.
A potential buyer is technically referred to as the "offeror" because they are the ones making the offer. Officially, the "offeree" is the prospective seller who accepts the offer.
Explanation:
A person or legal entity that offers to be contractually obligated to carry out specific responsibilities is known as an offeror.
The earnest money deposit is a hazard if the seller accepts the offer made through the agreement of sale and could be lost as liquid damages in the event that the buyer defaults.
Explanation:
An earnest money deposit is a sum of money paid by the buyer to the seller as a sign of good faith that the buyer intends to purchase the property. In the event that the buyer defaults on the agreement, the earnest money deposit may be forfeited by the seller as liquid damages for the breach of the contract. The amount of the earnest money deposit and the conditions under which it may be forfeited should be outlined in the agreement of sale. It is important for both parties to fully understand the terms of the agreement before signing it to avoid any misunderstandings or disputes later on.
The sale agreement is NOT a contract that must be followed by law.
Explanation:
The agreement of sale is the most significant contract for the purchase of real estate. It is a legally binding agreement, and both parties are required to abide by its requirements.
A counteroffer is essentially a complete rejection of the initial offer in legal terms.
Explanation:
A counteroffer serves as both a fresh offer that materially modifies the terms of the original offer and a rejection of an offer to enter into a contract. An acceptance of a counteroffer renders the initial offer wholly worthless because it acts as a rejection. As a result, the original offer cannot be accepted.
The offeree has three options when the offeror makes an offer: Three options are available: accept the offer, reject the offer, and complain to the Pennsylvania Real Estate Commission.
Explanation:
In general, when an offer is made by the offeror, the offeree has the following options:
1. Accept the offer: If the offeree agrees to the terms of the offer, they can accept it, creating a legally binding agreement between the parties.
2. Reject the offer: If the offeree is not interested in the offer or does not agree with the terms, they can reject it outright, ending the negotiation.
3. Counteroffer: If the offeree is interested in the offer but wants to change some of the terms, they can make a counteroffer, which starts a new negotiation cycle between the parties.
4. Let the offer expire: Offers often come with a deadline, after which they expire. If the offeree does not respond before the deadline, the offer is no longer valid.
