Real Estate Contracts & Agency 2

Question 1

A financing contingency in a purchase agreement protects the buyer if:

Accepted Answer

The buyer cannot obtain mortgage financing

Answer

The home appraises below asking price

Answer

The seller fails to make repairs

Answer

The closing date is delayed

Question 2

Specific performance as a remedy in real estate means:

Accepted Answer

The court orders the breaching party to complete the transaction

Answer

The seller must lower the price

Answer

The buyer must pay a penalty fee

Answer

The agent loses their license

Question 3

An option contract in real estate gives the optionee the:

Accepted Answer

Right but not the obligation to purchase within a set period

Answer

Obligation to buy the property

Answer

Right to list the property for sale

Answer

Title to the property immediately

Question 4

The Statute of Frauds requires that real estate contracts must be:

Accepted Answer

In writing and signed to be enforceable

Answer

Notarized by a public official

Answer

Filed with the county recorder

Answer

Approved by the state real estate commission

Question 5

When a seller responds to a buyer's offer by changing the price, this creates a:

Accepted Answer

Counteroffer that voids the original offer

Answer

Ratified contract

Answer

Binding acceptance

Answer

Contingency

Question 6

An open listing allows the seller to:

Accepted Answer

Sell through multiple brokers and pay commission only to the one who produces the buyer

Answer

List with only one broker exclusively

Answer

Cancel the listing without notice at any time for free

Answer

Sell only to cash buyers