Chapter_2_.txt

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Author:
Mrmarcusdmorgan
ID:
159326
Filename:
Chapter_2_.txt
Updated:
2012-06-19 11:40:25
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Michigan Institue Real Estate
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Description:
Chapter 2
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  1. When a contract is signed but the terms have not been performed, this is known as:
    Executed
  2. When a party to a contract make a promise in exchange for another promise, this contract is:
    Bilateral
  3. A 25 year old individual signed a contract with a 17 year old. The contract may be subject to:
    It's up to the minor to enforce the contract or to void it.
  4. A purchase agreement is signed by all parties, but later it is determined that the price will be lowered in return for the seller not including some of the appliances. What must the agent do ???
    Draw an amendment reflecting the changes and the party's sign it before the closing.
  5. When a party to a contract fails to meet its terms this is known as:
    Breach
  6. Seller accepted an offer and later refused to close the deal. What can the buyer do?
    Sue for specific performance
  7. The substitution of a new person or contract in place of another is known as:
    Novation
  8. The best and most satisfying way of terminating a contract is:
    Performance
  9. The name of the law that requires contracts to be in writing in order for them to be enforceable is:
    Statue of frauds
  10. Is duress considered a real estate contract?
    NO
  11. When a purchaser defaults on a purchase agreement, the earnest money deposit is:
    Paid to the seller as liquidated damages
  12. To withdraw an offer back before it is accepted is known as:
    Revocation
  13. Under what circumstance can a buyer revoke his/her offer to purchase?
    Any time before he/she is notified that his/her offer was accepted by the seller
  14. A purchase agreement is considered accepted and binding on both parties when:
    The acceptance of the seller has been communicated back to the buyer.
  15. Tom made an offer and placed a deposit with the seller. Later he decided to withdraw from the deal, and the seller released him and gave back his deposit. This is known as:
    Rescission
  16. Charles put an offer on a house to obtaining financing and the offer was accepted by the seller. Later Charles was unable to obtain financing and brought the seller a letter of resection from the bank. What happens to Charles deposit?
    The deposit is refunded to Charles.
  17. After getting of trying to fix a leak in the basement, the seller decided to apply paneling to cover the cracks and sell the house. The buyer did not suspect any leaks in the basement, since she was purchasing the home during the wintertime when the ground was frozen and no leaks usually happen. The sellers action is best described as:
    Silent fraud
  18. Interest that buyer acquires in property after the signing of a sales contract by all parties:
    Equitable title
  19. A seller is asking $125k but accepts a $110k offer subject to financing. A week later a full price offer is made to the seller. Under what circumstance can a seller accept a final offer ???
    As a back up offer, which will only be effective if the first buyer withdrew from the deal.
  20. An agent received an offer to purchase and contacted the seller but was not able to see her until 10p at night. Before leaving his office, he was contacted by another cooperating agent who presented him with a second offer that was much lower than the first offer that he has. What should the agent do?
    Take the second offer and present it to the seller anyways.
  21. As agent of the buyer, Jillian is showing an out of town buyer a house that has been on the market for 18 months listed at $300k. What must Jillian do regarding her knowledge of the length of time the property has been on the market ???
    Mention this fact to the buyer. As the buyers agent she must disclose all known facts about the property, especially something that could improve the clients bargaining position.
  22. Long-term capital gains taxes are limited to:
    15%
  23. What should a seller who decides to revoke a counteroffer do?
    She must make sure the buyer is notified before the counteroffer is accepted
  24. As a buyers agent the best time to qualify a buyer is:
    Before selecting houses to show so we can determine what a buyer can afford
  25. An offer to purchase is accepted and later it is determined that the closing can not take place on the date stated in the contract of sale (purchase agreement). If the buyer and seller agree to delay the closing 10 days, the broker should:
    Draw an additional agreement (amendment) and have the buyer and seller accept by signing the agreement.
  26. When a party to a contract does not satisfy the terms of the contract, this is called:
    Breach of contract
  27. In a contract that involves a buyer and a seller, if the sells fails to perform, the buyer may do what ???
    Sure for damages, sue for specific performances, and get back the deposit money.
  28. If one of the parties to a contract of sale (purchase agreement) signs the contract on the basis of false statements about the property, the contract is voidable on what grounds?
    Misrepresentation of facts
  29. The substitution of one party for another in a contract wherein the original contract is extinguished and the undertaking of the new party is a new obligation is know as:
    Novation
  30. Upon the sellers default, what should happen to the earnest money deposit ???
    It should be returned to the buyer as per agreement between the party's.

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