Real Estate Pt 2

90 Questions | Total Attempts: 73

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Real Estate Quizzes & Trivia

Questions and Answers
  • 1. 
    The Statute of Limitations requires that parties to a contract who have been damaged or who question the contract's provisions do what
    • A. 

      Act within a statutory period

    • B. 

      Select a specific, limited course of action for recouping their losses

    • C. 

      Arbitrate prior to taking court action

    • D. 

      Wait a statutory period before they take legal action

  • 2. 
    A buyer submits an offer to a seller.  Two hours later, the buyer finds a better house, calls the first seller, and withdraws the offer.  Which of the following is true?
    • A. 

      The buyer may not revoke the offer in such a short period of time

    • B. 

      The first seller may sue the buyer for specific performance

    • C. 

      If the seller accepted the offer, the buyer must perform

    • D. 

      The original offer is legally terminated

  • 3. 
    What is an important legal feature of a contract
    • A. 

      Represents a "meeting of the minds"

    • B. 

      It uses precise wording in a doc

    • C. 

      It is not voidable

    • D. 

      It can be created only by an attorney

  • 4. 
    What is the purpose of the Statute of Frauds?
    • A. 

      Invalidates certain oral contracts

    • B. 

      Requires certain conveyance-related contracts to be in writing

    • C. 

      Nullifies oral leases and listing agreements

    • D. 

      Eliminates fraud in real estate contracts

  • 5. 
    Which of the following contracts must be in writing
    • A. 

      A parol contract

    • B. 

      A 6 month lease

    • C. 

      A 2 year lease

    • D. 

      An executory contract

  • 6. 
    According to contract law, every valid contract is also what
    • A. 

      Void

    • B. 

      Enforceable

    • C. 

      Enforceable or unenforceable

    • D. 

      Voidable

  • 7. 
    What is an important legal characteristic of an option to buy agreement
    • A. 

      The potential buyer, the optionee, is obligated to buy the property once the option agreement is completed

    • B. 

      The optioner must perform if the optionee takes the option but the optionee is under no obligation to do so

    • C. 

      The contract can be executed at no cost to the optionee

    • D. 

      It is a bilateral agreement

  • 8. 
    Which of the following is a good example of a unilateral contract
    • A. 

      A listing agrement

    • B. 

      A personal services agreement

    • C. 

      A sale contract

    • D. 

      An option to buy

  • 9. 
    A prospective homebuyer submits a signed offer to buy a house with the condition that the seller pays financing points at closing.  The seller disagrees, crosses out the points clause, then signs and returns the doc to the buyer.  At this point, assuming all other contract validity items are in order, what is the status of the offer?
    • A. 

      It is an accepted offer; therefore valid contract

    • B. 

      Invalid contract

    • C. 

      It is an offer

    • D. 

      It is an invalid offer

  • 10. 
    When is a contract terminated
    • A. 

      After a cooling period

    • B. 

      After both parties have signed it

    • C. 

      After it is performed

    • D. 

      After the parties agree to their respective promises

  • 11. 
    Tim and Laura signed a sales contract with a mortgage contingency clause.  They do not try to get a loan, and when the deadline for a loan approval draws near, they tell their agent they couldn't get a loan.  which statement is true?
    • A. 

      They can cancel the contract and get their earnest money refunded

    • B. 

      The mortgage contingency clause is not valid

    • C. 

      The sellers must give them an extension to secure the loan

    • D. 

      Tim and Laura have no acted in good faith so they cannot get their earnest money back

  • 12. 
    Which of the following is one of the purposes of the Lawyers' Fund
    • A. 

      To protect lawyers who are sued by clients

    • B. 

      To compel real estate companies to use standard forms

    • C. 

      To reimburse clients for money that was misused by attorney

    • D. 

      To prevent licensees from preparing real estate contracts

  • 13. 
    Broker Sara completes a preprinted sales contract.  The contract was not approved by the local Real Estate Board nor the bar association.  Which is true
    • A. 

      Sara cannot legally fill out this contract

    • B. 

      She can fill out the contract but she cannot collect the earnest money deposit

    • C. 

      Sara can use a binder but not a sales contract

    • D. 

      She can use this contract as long as it contains an attorney review clause

  • 14. 
    Which one is least like a binder?
    • A. 

      Receipt

    • B. 

      Contract for sale

    • C. 

      Agreement

    • D. 

      Purchase offer

  • 15. 
    The down payment amount on a residential property in NY is around what percentage of the purchase price?
    • A. 

      10%

    • B. 

      15

    • C. 

      20

    • D. 

      25

  • 16. 
    What is a lead-based paint disclosure used for
    • A. 

      All residential property

    • B. 

      Homes built prior to 1978

    • C. 

      Only commerical property

    • D. 

      Only rental property

  • 17. 
    Broker Amanda prepares a sale contract, collects the earnest money and deposits it in her business account.  Which statement is true?
    • A. 

      Amanda has illegally commingled the earnest money with her own money

    • B. 

      Only attorneys can hold and deposit earnest money

    • C. 

      Amanda must deposit the money in the Lawyers' Fund

    • D. 

      Amanda has done nothing wrong

  • 18. 
    If a real estate agent prepares a sales contract and an attorney makes modifications to it, which statement is true
    • A. 

      The contract must be rewritten and signed again

    • B. 

      All parties must initial the changes

    • C. 

      The contract becomes unenforceable

    • D. 

      The contract will be valid after a 5-day waiting period

  • 19. 
    Which of these is a common property description
    • A. 

      Tax map

    • B. 

      Survey

    • C. 

      Street address

    • D. 

      Subdivision plat map

  • 20. 
    Which of the following docs is not one that will be needed at a closing
    • A. 

      Prior deed

    • B. 

      Copy of property tax bill

    • C. 

      Prior title insurance policy

    • D. 

      Seller's credit report

  • 21. 
    Which is true?
    • A. 

      A borrower cannot qualify for a conventional load unless he or she can make a 20% down payment

    • B. 

      Private mortgage insurance is available for FHA loans

    • C. 

      A borrower can request the cancellation of PMI payments when the equity reaches 20% of the purchase price

    • D. 

      A lender can continue to collect PMI payments until the homeowner's equity reaches 25%

  • 22. 
    Which loan covers the period of time between the end of one mortgage and the beginning of another?
    • A. 

      Construction

    • B. 

      Wraparound

    • C. 

      Open-end

    • D. 

      Bridge

  • 23. 
    In which of the following types of loans is the payment allocated only to interest?
    • A. 

      Straight

    • B. 

      Balloon

    • C. 

      Amortized

    • D. 

      Adjustable rate

  • 24. 
    Which organization insures loans made by approved lending institutions
    • A. 

      SONYMA

    • B. 

      FHA

    • C. 

      RHS

    • D. 

      VA

  • 25. 
    What is the provision of a mortgage that outlines what will happen if the borrower fails to pay the mortgage called?
    • A. 

      Attachment

    • B. 

      Covenant of seisin

    • C. 

      Acceleration clause

    • D. 

      Defeasance clause

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