Real Estate: The Sales Process! Quiz

12 Questions | Total Attempts: 44

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Real Estate: The Sales Process! Quiz

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Questions and Answers
  • 1. 
    The most important contract in the sale of real property is called the "agreement of sale".
    • A. 

      True

    • B. 

      False

  • 2. 
    The agreement of sale is NOT a legally binding contract.
    • A. 

      True

    • B. 

      False

  • 3. 
    Before buyer signs, this agreement of sale, the  Rules, and Regulations of the Pennsylvania Real Estate Commission require that all licensed real estate agents prepare and give to any buyer a reasonable, accurate written estimate of closing costs.
    • A. 

      True

    • B. 

      False

  • 4. 
    The "statute of frauds" requirement is that the seller is guaranteeing the buyer a clear title to the property being sold.
    • A. 

      True

    • B. 

      False

  • 5. 
    As the person giving the offer, a prospective buyer is officially known as the "offeror". The prospective seller as the receiver of the offer is officially known as the "offeree".
    • A. 

      True

    • B. 

      False

  • 6. 
    An advance offer of money put up in earnest by the buyer with the agreement of sale to make a good faith offer to the seller of the property is known as a "contract binding offer".
    • A. 

      True

    • B. 

      False

  • 7. 
    If the offer made through the agreement of sale is accepted by the seller, the earnest money deposit is at risk and may be forfeited as liquid damages in the event of default by the buyer.
    • A. 

      True

    • B. 

      False

  • 8. 
    Brokers are required by law to deposit money belonging to another into an escrow account within seven (7) days following its receipt in the real estate office where the escrow records are maintained.
    • A. 

      True

    • B. 

      False

  • 9. 
    When an offer is made by the offeror, the offeree has 3 choices: 1) Accept the offer, 2) Reject the offer, 3) File a complaint with the Pennsylvania Real Estate Commission.
    • A. 

      True

    • B. 

      False

  • 10. 
    A counteroffer by law represents a total rejection of the original offer.
    • A. 

      True

    • B. 

      False

  • 11. 
    A temporary loan that can be used to complete the down payment needed for the settlement of the new home as the result of the cash that has not been released from the sale of the old home is known in the real estate business as an unsecured loan.
    • A. 

      True

    • B. 

      False

  • 12. 
    There are numerous risks to a borrower-buyer who enters into an agreement of sale to purchase a new home without having sold an old home and then is unable to sell the old home in time to go to settlement on the new home. In this case, a borrower-buyer may possibly be burdened with payments on 3 property loans: 1) mortgage on an old home that remains unsold, 2) mortgage loan needed to purchase a new home, 3) swing loan needed to carry over the cash from the old unsold home to make a down payment on the purchase of a new home. 
    • A. 

      True

    • B. 

      False

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