Quiz - Uniti 10 Sales Contracts and Practices

To sell his property the seller has entered into a contract. While the sale is pending, the listing agent receives another offer to purchase the property from a different firm. Which of the following statements is TRUE?

The listing agent must present this offer to the seller.

Which of the following statements is TRUE of a conventional option to purchase contract?

It must be exercised within a specified time period by the optionee.

At 1:30 p.m., a broker emailed an offer to purchase to their seller client. At 2:00 p.m., after considering the offer, the seller called and informed their agent that they wanted to increase the earnest money deposit by $1,000. To make the seller’s requested change for additional earnest money, the seller’s agent needs to

have the seller change the term in the original offer, initial, and date.

The buyer’s offer is made on the condition that the buyer’s inspection indicates that all working systems of the structure are up to current code. This condition is called

a contingency.

The buyer’s offer is made on the condition that the buyer is able to obtain an 80% institutional loan at a specified interest rate by a specified date. If the buyer notifies the seller in writing of the inability to obtain such a loan, the buyer will

not have to purchase the home and will be entitled to a full refund of the earnest money deposit.

An offer to purchase is submitted on a listing while the property owner is out of town on business. The offer is electronically submitted to the owner and the owner signs and returns the offer with no changes in terms. If the signed offer is then electronically submitted to the listing agent who calls the buyer’s agent with this information, which of the following statements is TRUE?

The seller is under contract to sell his property since electronic signatures are binding.

Which of the following statements is TRUE when an offer to purchase has been signed by the buyer and then given to the seller’s broker with an earnest money deposit check for the seller to consider?

The earnest money check shall be deposited in the listing firm’s trust account no later than three days following acceptance of the offer to purchase.

Which of the following will NOT terminate an offer to purchase?

Revocation by the offeror communicated to the offeree after acceptance

Which of the following statements is TRUE of the due diligence fee in the NCBA/NCR 2-T Offer to Purchase and Contract?

The due diligence fee is applied to the purchase price at closing.

When a buyer and seller have entered into an installment land contract, which of the following is TRUE?

The seller retains an interest called legal title.

Under contract terms, one party will pay the property owner $1,500 a month for 10 years. The property owner will continue to hold legal title to the property. That party will live on the property and pay all real estate taxes, insurance premiums, and regular upkeep costs. What kind of contract is in place?

Installment land contract

A married couple offers in writing to purchase a house for $320,000, including the draperies, with the offer to expire on Saturday at noon. The owners reply in writing on Thursday, accepting the $320,000 offer, but excluding the draperies. On Friday, while the couple considers this response, the owners reconsider the original offer and decide to accept the original offer in writing, including the draperies. Since it is before Saturday at noon, the couple

is not bound to buy because they are not under contract.

A man signs a contract under which he may purchase a house for $800,000 any time within the next three months. The man pays the current owner $5,000 at the time the contract is signed. Which of the following best describes this contract?

Option to purchase

A for-sale-by-owner signs a written offer to purchase without making any changes to the offer. The seller then mails the signed offer to the buyer by express mail without any further contact with the buyer. Before receipt of the envelope from the seller, the buyer changes her mind about purchasing the property and calls the seller to withdraw the offer. Which of the following statements is TRUE?

Buyer cannot withdraw offer because she is already under contract.

A seller receives two offers to purchase her North Carolina property at the same time. One offer is for full listing price but wants a delayed closing that is not in the seller’s best interest. The second offer has terms that are very agreeable to the seller but offers less than full price for the property. Without any knowledge or consent of the first offeror, the listing agent contacts only the second offeror and tells them that there is a full price offer on the table and asks if they would like to increase the purchase price in their offer. Listing agent is

in violation of Commission Rules because he revealed offer terms.

Which of the following is TRUE of a right of first refusal given to the tenant of a rental house?

The landlord must offer to sell the property to the tenant first, if the landlord decides to sell the house.

A preprinted North Carolina sales contract provided for use by a real estate broker may NOT contain a provision about

broker disclaiming liability.

The effective date of a sales contract is defined as the date that

notification of acceptance is given to the other party.

Per the NCBA/NCR 2-T Offer to Purchase and Contract, if the seller commits a material breach and the buyer elects to terminate the contract, the buyer is entitled to

a refund of paid earnest money, due diligence fee, and all reasonable costs of the buyer’s due diligence.

During the buyer’s due diligence period in the NCBA/NCR 2-T Offer to Purchase and Contract, the buyer is entitled to

renegotiate any term in the contract.

If a buyer wishes to make an offer on property that is already under contract, the buyer should ask his broker to add which addendum?

Back-Up Contract Addendum

An NCBA/NCR 2-T Offer to Purchase and Contract offered for use by a real estate broker

must not include a disclaimer of liability on the part of the broker.

The sales contract says the buyer will purchase only if an attorney approves the sale by the following Saturday. The attorney’s approval is a

contingency.

If a broker receives multiple offers on a listing, the broker must

present them all at once.

Shopping offers

both of these.