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PSI Contract ?s
PSI Contract Performance ?s
| Question | Answer |
|---|---|
| Time is of the essence is a concept of real estate law concerning: a. performance b. delivery of title c. leases d. conditions of record | A |
| A buyer & seller entered into a purchase contract. The seller decides not to sell property. In order for buyer to force seller to sell what remedy: a. assignment b. unilateral recision c. liquidated damages d. specific performance | D Specific performance is an action brought in court to compel a party to carry out terms of a contract. |
| A contract could be rescinded due to: a. fraud b. mistake c. misrepresentation d. Any of these | D |
| A congtract may be canceled: a. by mutual agreement between parties b. by an attorney for either party c. with 30 days notice by either party d. under no circumstances | A |
| A contract of sale that is contingent upon the buyer's ability to obtain leases in advance is: a. unenforceable b. void because it violates statutes of limitations c. enforceable d. illusory | C The contract has a contingency and is conditional. It is enforceable as the seller can sue for specific performance. |
| A legal procedure or action brought by either the buyer or seller to enforce the terms of the contract is known as: a. legality of object b. an option c. contract d. specific performance | D |
| A month to month tenancy must include which of the following to be valid? a. oral or written contract b. consideration c. all of these d. offer and acceptance | C |
| A remedy in court compelling the seller to sell the property is known as: a. specific performance b. foreclosure c. equity of redemption d. execution | A |
| A seller made a counter offer and gave 2 days for acceptance. The next day, the seller receives a better offer, which she wants to accept. The 1st step the seller should make is to: a. sign new offer b. withdraw counter offer c. withdraw offer | B In this situation, the new offer cannot be accepted unless the seller's counteroffer is withdrawn or rejected. |
| A seller rejects a written offer made by a buyer, alters the terms of the offer and has new offer delivered to the buyer. This is: a. offer and acceptance b. meeting of the minds c. change order d. counteroffer | D |
| A seller sold his farm under a written contract of sale that made no statements about assignment. The buyer has assigned the contract of sale to a new buyer. Until the sale is settled, the equitable titel is held by the: a. new buyer b. 1st buyer & | A |
| An executed sales contract may be assigned under what condition? a. only w/ seller's permission b. under no conditions c. only if contract provides for it d. unless contract prohibits it | B Executed contracts are closed and cannot be assigned. Only executory contracts may be assigned. |
| An executory contract may be assigned: a. under any circumstances b. under no circumstances c. if provided in the contract d. unless prohibited in the contract | D All contracts are assignable unless prohibited within the terms of the contract. |
| Crossing out part of the printed matter in a contract is: a. violation of commission rules b. allowed but should allow a reader to see what was marked out c. illegal d. unauthorized practice of law | B |
| If a buyer makes a counteroffer to the seller's counteroffer, the seller's counteroffer is: a. still in effect b. terminated but can still be accepted c. modified d. terminated | D |
| If a contract offer is not accepted within the specified time period it: a. cannot be countered b. is renewed c. can be extended by the offeree d. terminates | D Any offer not accepted may be countered. Only the offer can extend the time period. |
| If a party to a valid real estate contract becomes bankrupt while the contract is executory, the contract: a. is voidable b. terminates c. must be renegotiated d. is still enforceable | B All contracts are terminated by bankruptcy |
| If a party to a valid real estate contract dies while the contract is executory, the contract: a. is enforceable on the deceased party's estate b. terminates c. must be renegotiated with estate of deceased d. is voidable | A |
| If a property is destroyed before the title or possession has passed, the contract is: a. valid b. voidable by the seller c. void d. voidable by the buyer | D |
| If a property is destroyed before the title or possession has passed, and the buyer terminates the contract, she: a. is entitled to her money back b. has no recourse c. must have insurance to cover it d. must sue for the money | A. The contract is voidable by the buyer, who can terminate and have her earnest money returned in full. |
| If a seller accepts & signs an offer made by a purchaser, the next thing the listing agent should do is: a. sign the contract for her broker b. notify buyer c. notify buyer's agent d. notify broker immediately | C The listing agent should notify the buyer's agent of acceptance of the offer so the agent can notify the buyer about acceptance. |
| If a seller has already accepted one offer and another offer comes in, the listing agent should: a. submit the new offer b. reject the new offer c. hold the new offer d. submit the new offer if better than the current contract | A The listing agent must promptly submit ALL written offers for real property to the seller up to closing. |
| If a seller has already accepted one offer and later accepts another offer on a contingetn basis, this contract is called a: a. blanket contract b. contingent contract c. back up contract d. secondary contract | C A back up contract is contingent upon the first contract failing. |
| If a seller has entered into an executory contract and wants to make a counteroffer on another offer that just came in, the counteroffer should be: a. only drafted by a lawyer b. dontingent on the contract not closing c. contingent upon acceptance b | B The seller may not accept a new offer and should only accept offers that are contingent upon the first contract failing to close. |
| If a seller signs an offer made by a purchaser, the 1st thing the listing agent should do is: a. take contract to broker b. give copy to seller c. submit contract to buyer d. sign contract for her broker | B Upon signing any document, the parties should be given a copy. |
| If the current or previous owner of a property is infected with AIDS, when should the owner or real estate professional disclose this info to a potential buyer? a. only if asked by buyer b. never c. only if directed by his/her broker d. always | B AIDS in a handicap under Fair Housing and is protected |
| It is said that a valid contract must have lgality of object. Which of the following best describes legality of object? a. the contract muyst not be for illegal purpose or against public policy b. contract between competent parties that is legally en | A |
| The substitution of a new contract, which terminates and replaces an existing contract is called: a. novation b. assignment c. substitution d. replacement | A Novation removes all obligations and liabilities of 1st contract, replacing it with a new contract. Assignment still leaves some liabilitites from 1st contract |
| Unless the sales contract stipulates to the contrary, the risk of loss or damage to property before legal title or possession is transferred to the buyer falls on the: a. buyer b. buyer's title insurance c. seller's insurance company d. seller | D The seller is liable for damage until he/she has given either possession or title to the buyer. |
| When a home buyer assumes an existing loan and the lender releases the original borrower it is called: a. novation b. assignment c. acceleration d. due on sale | A |
| When a signed sales contract is assigned, the disbursal of earnest money is determined by: a. the seller and listing broker b. the law of agency c. an agreement between the parties d. the listing broker | C |
| When more than one offer is received, the seller may accept or make a counteroffer on: a. any offer received b. highest offer only c. all offers simultaneously d. first offer only | A |
| When one party fails to live up to her contractual obligations, it is known as: a. termination b. assignment c. breach d. novation | C |
| When presenting an offer to a seller and the seller has legal questions about the contract, the real estate agent should: a. advise seller to consult a lawyer b. answer only questions they are sure about c. advise seller to consult broker d. answer | A |
Created by:
jenkasick