Real Estate Ch 13 Quiz - Barker

The successful conveyance of real estate depends on a well-formed contract for sale since the contract dictates the rights and type of deed involved, as well as choreographs the entire transaction. Which of the following features of the contract for sale refers to the arrangements agreed to by the parties, such as price and date of closing?

A)contract conditions

B)contract terms

C)equitable title

D)contingency clause

B

2)Any contract, whether it is for the sale of real estate or some other entity, must contain five basic elements. However, any contract for the sale of real estate must adhere to two additional requirements. Which of the following contract elements is an additional requirement that must be satisfied in a contract for sale of real estate that isn't necessarily a part of other contracts?

A)written form

B)offer and acceptance

C)no defects to mutual assent

D)consideration

A

3)While the principal parties to a transaction must be legally competent for a contract to be valid, it is possible for a party acting on behalf of a principal to obtain this legal right. In order for personal representatives and trustees to be authorized to act on behalf of a principal, a legal instrument commonly referred to as ________ must be in place.

A)mutual assent

B)assignment

C)power of attorney

D)consideration

C

4)Which of the following contract elements is an additional requirement that must be satisfied in a contract for sale of real estate that isn't necessarily a part of other contracts?

A)legal objective

B)consideration

C)proper description of the property

D)competent parties

C

5)Since the seller often has utilized the property for a portion of the year in which the transaction is being made, certain costs associated with the property will be prorated at the closing. All of the following items are subject to proration except

A)broker commission.

B)property tax.

C)mortgage interest.

D)prepaid rent.

A

6)At the closing, the buyer will be credited for a number of costs that have been paid up-front (or will be paid after closing) as well as a number of prorated expenses that account for the period of time during which the seller occupied the house. All of the following items detailed in the closing costs involve credits that are commonly passed on to the buyer except

A)property taxes.

B)mortgage interest.

C)earnest money.

D)hazard insurance premiums.

D

7)In certain circumstances, mutual assent between the contracting parties may be broken,thus invalidating the contract. Which of the following defects to mutual assent involves compelling a person to act by the use of force?

A)One of the parties is under duress.

B)One of the parties is under undue influence.

C)One of the parties is committing fraud.

D)One of the parties is under menace.

A

8)When the seller in a contract for sale fails to perform (e.g., breach of contract,nonperformance, or default), the buyer has a variety of remedies. One such remedy is to appeal to the court to force the defaulting seller to carry out the contract. This remedy is most commonly referred to as suing for

A)specific performance.

B)recission.

C)earnest.

D)damages.

A

9)When a borrower (the buyer) applies for a loan, the lender will provide him/her with which of the following forms that includes details pertaining to specific loan information and an estimate of expenses that the borrower is likely to incur at the closing? A)certificate of occupancy

B)loan estimate

C)kickback agreement

D)Your Home Loan Toolkit booklet

B

10)Suppose that you decide to purchase a property that has annual property taxes of$2,427.22. If the closing occurred on March 13, calculate your share (buyer's share) of the total property taxes. For this problem, assume that we are dealing with a 365-day calendar year.

A)$1,996.96

B)$482.26

C)$1990.17

D)$2,479.22

A