Real Estate

Q: The broker and the seller know of major plumbing repairs to be made. They sell the house to a buyer "as is" but do not disclose the plumbing problems. The buyer discovers the defects after closing and sues the broker and seller. Most likely, the buyer can collect, because the defect should have been disclosed.

Q: The absence of duress, menace and undue influence are requirements of lawful objective.

Q: A real estate contract can be declared void if it is not signed.

Q: An acknowledgement is necessary for a valid real estate contract.

Q: If a contract is made under duress, it would be void.

Q: If a contract is considered voidable, it is valid until voided.

Q: A contract that results not from a written or oral agreement but from the actions of the parties involved is called an expressed contract.

Q: The sum of money agreed upon in advance to be the damages in the event certain problems occur later is best described as a. judgement damages. b. liquidated damages. c. default damages. d. punitive damages.

Q: The term "rescinded" in real estate means a. rewritten. b. rejected. c. reworded. d. canceled.

Q: If a contract is breached and the damaged party wants the contract carried out, he would sue for a. specific performance. b. money damages. c. novation. d. unilateral rescission.

Q: An executory contract is a a. contract which has been completely executed. b. contract in which certain things are still to be done. c. will in probate for which an executor has been named. d. contract which has not been signed.

Q: The requirement that transfers of real property be in writing is known as a. contract law. b. the bill of rights. c. the statute of frauds. d. due process.

Q: Two persons make an oral agreement. A day later they put it in writing with several small changes. What is true about the agreement in a court of law? a. The oral one would prevail b. The written one would prevail c. A new agreement must be made d. The agreement must be notarized to be legal

Q: When the prospective tenant signed the lease, he indicated that he would be using the building to sell appliances. Later, the landlord discovered that illegal bingo games were being played there. What can the landlord do? a. He can do nothing as long as the tenant is current with the rent. b. He can declare the lease void and start eviction proceedings. c. He must have a conversation with the tenant to try to persuade him to stop the illegal activity. d. He can organize a boycott.

Q: A contract created under duress is a. invalid. b. voidable. c. unenforceable. d. void.

Q: A real estate broker could most likely be held liable to a buyer if the broker a. makes a misrepresentation to the buyer based on false information given to him by the seller. b. signs an agreement with the buyer on behalf of the seller under the power of attorney granted by the seller. c. acts in excess of the authority given to him by the seller under a listing agreement. d. retains the buyer's check at the seller's request after an offer has been accepted by the seller and acceptance has been communicated to the buyer.

Q: A man put up $10,000 as earnest money on a property for sale. The next day, he needed the money back and attempted to cancel his offer. Which of the following is true? a. He can get out of the offer because he has a three day right of rescission. b. The decision would be entirely up to the broker. c. He can get out of the offer because of the six-day right of rescission. d. He would have to revoke the offer before the seller accepted it.

Q: An offeree who wishes to bind the offeror to the contract may do which of the following with an offer? a. Accept it b. Modify it slightly before acceptance c. Withdraw it prior to acceptance d. Accept and counter with conditions

Q: The party making an offer is called the a. offeree. b. grantee. c. offeror. d. agent.

Q: The broker has the power to sign documents for the principal. This is probably because she holds a. a power of attorney. b. an agency relationship. c. special agent status. d. an attorney-at-law.

Q: John and Jay are brothers who received title to a property from their father. When they decided to sell the property, Jay was out of town. In order to properly transfer title, the deed could be signed by a. John alone, since they are brothers. b. John, with a properly recorded power of attorney from Jay. c. John and the father, since the father was the original owner. d. no one, since both must be present.

Q: To be legally competent, a person must reach the age of a. minority. b. majority. c. reasonable competence. d. 17 years.

Q: Which of the following are considered to be legally competent? a. Corporations b. Persons of unsound mind c. Minors d. A 15 year old woman

Q: Which of the following is an essential element of a contract? a. A counter offer b. Acceptance c. Performance d. A fair price

Q: All of the following are essential elements of a contract EXCEPT a. competent parties. b. lawful objective. c. monetary consideration. d. meeting of the minds.

Q: The buyer agreed to buy the property at the seller's asking price. They shook hands on the deal. Later, the seller refused to sell. If the buyer still wants to buy, he can a. hire an attorney and sue for non-performance. b. go to a small claims court and sue for damages. c. consult a real estate broker and ask her to explain that the seller must honor the agreement. d. do nothing.

Q: When a contract appears to be good and binding but, in fact, one of the parties may legally reject it, the contract is said to be a. unenforceable. b. valid. c. void. d. voidable.

Q: A contract entered into by a minor is a. illegal. b. voidable. c. valid. d. unenforceable.

Q: In the absence of a special provision for such an event, an offer to purchase will probably be voided a. by the death of either buyer or seller before acceptance. b. if the seller changes his mind after accepting the offer. c. if not accepted within 24 hours. d. if the seller should receive a higher offer from another buyer.

Q: A real estate contract can be declared void if a. it is signed and not read. b. It is signed with a witnessed X. c. signed by only one party. d. it is signed by an unmarried minor.

Q: Assuming that no fraud is intended, what is the status of a contract signed by an illiterate person? a. Valid b. Void c. Voidable d. Unenforceable

Q: When one party to a contract makes a promise without first receiving any promise of performance from the other, it is called a. a bilateral contract. b. an implied contract. c. a unilateral contract. d. an executory contract.

Q: A contract that results when a promise is exchanged for a promise is called a. bilateral contract. b. unilateral contract. c. express contract. d. implied contract.

Q: A lease is an example of a a. non-contractual agreement. b. declaration of intent. c. unilateral contract. d. bilateral contract.

Q: The agency relationship of a real estate broker with his client is most often established by a. an implied contract. b. express contract. c. an endorsement. d. a ratification.

Q: A meeting of the minds creating enforceable rights is called a. a contract. b. an estoppel. c. a lien. d. a deed.

Q: All of the following are real estate contracts EXCEPT a. an exclusive right to sell listing. b. a sales agreement. c. a closing statement. d. a lease.

Q: Once the seller accepts an offer, if the buyer fails to complete the purchase, the seller may keep the buyer's deposit as ______________________________.

Q: A lawsuit for _________________________ is an action in court by the innocent party to force the breaching party to carry out the remainder of the contract according to the precise terms, price and conditions agreed upon.

Q: A contract that is in the process of being carried out is said to be ____________________, that is, in the process of being performed.

Q: Under certain circumstances the ____________________ evidence rule permits oral evidence to complete an otherwise incomplete or ambiguous written contract.

Q: For an agreement to be enforceable it must be supported by ____________________ to demonstrate that a bargain has been struck between the parties to the contract.

Q: As a requirement of a valid contract ____________________ and ____________________ requires that one party makes an offer to another party.

Q: A promise not to act by one or more of the parties to a contract is known as ____________________.

Q: A contract that has no binding effect on the parties who made it is a(n) ____________________ contract.

Q: Title insurance has made titles to land much more ____________________.

Q: A lender's title insurance policy is also known as a ____________________ policy.

Q: A report made by a title insurance company showing current title condition is called a _________________________.

Q: A title defect is also known as a title ____________________.

Q: A(n) ____________________ of ____________________ is a complete historical summary of all recorded documents affecting the title of a property.

Q: A(n) ____________________ of ____________________ is the linkage of property ownership that connects the present owner to the original source of title.

Q: Of the two indexing systems, the ____________________ index is the simplest to use.

Q: A formal declaration by a person signing a document that he or she, in fact, did sign the document is called a(n) ____________________.

Q: ____________________ notice is knowledge that one has actually gained based on what one has seen, heard, read, or observed.

Q: Notice given by the public records and by visible possession, coupled with the legal presumption that all persons are thereby notified is called ____________________ notice.

Q: Under the Torrens system, once a title is registered , any subsequent liens or encumbrances against it must be entered on the registrar's copy in order to give constructive notice.

Q: When a title defect must be removed, a quiet title suit may be the best solution.

Q: The amount of coverage provided by a lender's title policy stays constant over the life of the policy.

Q: Title insurance is typically purchased after a property is purchased.

Q: An abstract of title is a summary of all deeds or other documents dealing with the transfer of ownership.

Q: When title is clouded by judgments against recent owners or pending lawsuits that might later affect title, information may be found in the judgment rolls or the lis pendens index.

Q: If a chain of title is broken, one must search outside the recorder's office by searching probate court records and civil court actions to regain the title sequence.

Q: Almost all states use the tract indexing system.

Q: Documents to be recorded are photocopied and then placed in alphabetic order.

Q: Most states do not require that documents be acknowledged before being eligible for recording.

Q: A person interested in a property is held by law to be responsible for making further inquiry of anyone giving visible or recorded notice. This is called "inquiry notice."

Q: Prior to enactment of the Statute of Frauds in 1677 a landowner gave notice to the world of his claim to ownership by visibly occupying the land.

Q: Standard owner's title insurance premiums are paid only once, when the policy is issued.

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