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Flashcards in 3.7 Deck (26):
0

To assure against mechanic's liens, the builder must give a _______ waiver for all work performed.

lien

1

There may be a limited period of price protection for the buyer in the Purchase Agreement if the purchase agreement is _______ on the sale of the buyer's home.

contingent

2

True or False:
A Vacant Land Disclosure is required under State law.

False

3

True or False:
Something that would generally be a contingency of a vacant land sale is obtaining the approval of the city councilperson representing the neighborhood.

False

4

According to the seller's contribution to Closing Costs Addedndum, if the lender cannot use all of the seller's contribution amount, the seller _______ the unused contribution amount.

retains

5

Funds contributed by the seller on behalf of the buyer must be stated on the _________ Settlement Statement.

HUD-1

6

The buyer of new construction should be made aware of the statutory ________ that apply to new homes.

warranties

7

In a New Construction Purchase Agreement the title of "seller" is replaced with _______.

builder

8

True or False:
The agreement assumes that the builder owns the lot on which the house will be built.

True

9

True or False:
When the builder is building to order or custom building, the buyer pays a cash deposit and partial payment toward initial costs, which is refundable just like an earnest money deposit.

False

10

The builder must provide a ______ Construction Statement at closing.

Sworn

11

How long is the warranty period for defects caused by faulty workmanship and defective materials due to noncompliance with building standards?

1 year

12

How long from the discovery of a breach in the warranties, can the buyer bring action based on the breach?

2 years

13

Any personal property, other ______, should be itemized.

utilities

14

Make sure that sufficient time is allowed for all _________ to be completed.

contingencies

15

Percolation tests determine __________ conditions relative to installation of a septic system and drain field.

soil

16

True or False:
Survey's, soil tests, and copies of deed restrictions are, arguably documentation that can benefit the seller in future efforts to sell the property. For this reason, those costs are often seller-paid.

True

17

True or False:
Other contingencies that relate to verifications of the buyers' ability to fulfill their specific intentions for the property are usually seller-paid expenses.

False

18

True or False:
There may be neither a Seller's Disclosure or a Seller's Disclosure Alternatives form for the vacant land transaction.

True

19

Upon successful cancellation of the contract, what happens to all interest in and payments made for the property by the buyer?

They are forfeited to the seller.

20

True or False:
The buyer can choose to pay more than the amount agreed upon (for a CD)?

True

21

(CD) There is typically a _______ date after so many years, at which time the buyer will usually refinance or sell to pay the remaining principal balance.

balloon

22

True or False:
The seller can sell their interest in the Contract for Deed.

True

23

All lien holders need to approve the short sale and such approvals must be acceptable to the ______ to satisfy the cotingency.

seller

24

What happens if all approvals are not received by this date?

the agreement is cancelled

25

If the deadline is not met, both the buyer and seller must immediately sign a Cancellation of ___________.

Purchase Agreement