3.7 Flashcards
(26 cards)
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
To assure against mechanic’s liens, the builder must give a _______ waiver for all work performed.
lien
True or False:
A Vacant Land Disclosure is required under State law.
False
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
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
Funds contributed by the seller on behalf of the buyer must be stated on the _________ Settlement Statement.
HUD-1
The buyer of new construction should be made aware of the statutory ________ that apply to new homes.
warranties
In a New Construction Purchase Agreement the title of “seller” is replaced with _______.
builder
True or False:
The agreement assumes that the builder owns the lot on which the house will be built.
True
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
The builder must provide a ______ Construction Statement at closing.
Sworn
How long is the warranty period for defects caused by faulty workmanship and defective materials due to noncompliance with building standards?
1 year
How long from the discovery of a breach in the warranties, can the buyer bring action based on the breach?
2 years
Any personal property, other ______, should be itemized.
utilities
Make sure that sufficient time is allowed for all _________ to be completed.
contingencies
Percolation tests determine __________ conditions relative to installation of a septic system and drain field.
soil
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
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
True or False:
There may be neither a Seller’s Disclosure or a Seller’s Disclosure Alternatives form for the vacant land transaction.
True
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.
True or False:
The buyer can choose to pay more than the amount agreed upon (for a CD)?
True
(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
True or False:
The seller can sell their interest in the Contract for Deed.
True
All lien holders need to approve the short sale and such approvals must be acceptable to the ______ to satisfy the cotingency.
seller
