Real Estate Practice: Q 9/Chp 41-43 Flashcards
1) A seller’s counter to an unacceptable offer to purchase can be written on:
a. a new purchase agreement form.
b. a counteroffer form.
c. the original offer using the change-and-initial method.
d. All of the above.
d. All of the above (pg 414)
2) The change-and-initial counteroffer technique is proper even after the original document has been signed.
True
False
False (pg 417)
3) Contingency provisions included in purchase agreements are eliminated by:
a. approval of the information identified as the subject of the provision.
b. waiver of the right to cancel by the person authorized to cancel.
c. Both a and b.
d. Neither a nor b.
c. Both a and b (pg 424)
4) Written contingency provisions include:
a. who has the right to cancel the purchase agreement if the event does not occur.
b. a description of the event addressed in the contingency.
c. the time period in which the event has to occur.
d. All of the above.
d. All of the above (pg 424)
5) The primary user of contingency provisions in purchase agreements is the buyer or buyer’s agent.
True
False
True (pg 425)
6) A condition which a buyer needs to perform without concern for whether the seller is performing is called a:
a. condition precedent.
b. condition concurrent.
c. condition subsequent.
d. None of the above.
b. condition concurrent (pg 423)
7) The person with the right to cancel due to the failure of a contingency to occur may only exercise their right if they have a reasonable basis for the cancellation.
True
False
True (pg 436)
8) Mutual-benefit contingencies cannot be waived except by mutual consent.
True
False
True (pg 439)
9) Checking the availability of fire insurance is an activity addressed by an event occurrence contingency.
True
False
True (pg 440)
10) Personal-satisfaction contingencies are identical to event-occurrence contingencies.
True
False
False (pg 442)
