Chapter 11 Flashcards Preview

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Flashcards in Chapter 11 Deck (18)
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1
Q

What is an important legal feature of a contract?

  • It represents a “meeting of the minds.”
  • It must use precise wording in a document.
  • It is not voidable.
  • It can be created only by an attorney.
A

It represents a “meeting of the minds.”

2
Q

A listing which allows the owner to sell the property himself without being liable for a commission, but which appoints only one broker to act as his sole agent is a(an)

  • sole listing.
  • open listing.
  • exclusive right-to-sell.
  • exclusive agency.
A

exclusive agency

3
Q

If an offer to purchase real property has been presented to a seller, but NOT accepted, the offer

  • may be withdrawn by the buyer at any time.
  • must remain open until the seller responds.
  • may be withdrawn, only with the seller’s permission.
  • binds the buyer until the offer has expired.
A

may be withdrawn by the buyer at any time

4
Q

Which of the following disclosures are not required in a sales contract?

  • Lead-based paint
  • Radon gas
  • Utility costs
  • Building code violation
A

Utility costs

5
Q

An arrangement in which brokers pool their listings and all commissions are divided between the listing broker and the selling broker is

  • an open listing.
  • a multiple listing.
  • an exclusive agency listing.
  • an exclusive right-to-sell.
A

a multiple listing

6
Q

When is a purchaser said to have “equitable title?”

  • At the signing of the sales contract by the buyer
  • At the time of closing
  • Between the time of delivery and acceptance (notification) of the contract and actual closing
  • At the time of the offer
A

Between the time of delivery and acceptance (notification) of the contract and actual closing

7
Q

An unscrupulous investor completes a contract with a buyer to sell a property the investor does not own. What is true about the sale contract for this transaction?

  • It is voidable.
  • It must be in writing.
  • It is void.
  • It is illegal yet potentially enforceable.
A

It is void.

8
Q

An Exclusive Right-to-Sell has been signed. What BEST describes the type and status of this contract?

  • Unilateral executory
  • Bilateral executory
  • Unilateral executive
  • Bilateral executive
A

Bilateral executory

9
Q

In order to be in compliance with the Statute of Frauds, a sales contract must be

  • in English.
  • in writing.
  • delivered.
  • recorded.
A

in writing.

10
Q

The parties created a contract by stating terms for compliance. This is BEST described as

  • executed.
  • implied.
  • expressed.
  • executory.
A

expressed

11
Q

A listing agreement could be terminated by all of the following situations EXCEPT which?

  • The house burns down.
  • The owners cancel the listing in order to contract with the buyer and sell directly.
  • The broker renounces the agreement.
  • The seller revokes the agreement.
A

The owners cancel the listing in order to contract with the buyer and sell directly.

12
Q

The Parol Evidence Rule most closely means

  • anything in writing takes precedence over oral or verbal agreements.
  • telephone recordings may be used as evidence in court.
  • Persons on parole cannot enter into a contract.
  • Parol contracts cannot be enforced.
A

anything in writing takes precedence over oral or verbal agreements.

13
Q

The primary purpose of a listing agreement is to

  • serve as a contract of employment between the seller and broker.
  • list all the improvements and amenities of the property.
  • serve as a guide for a sales contract.
  • serve as a contract between the buyer and the seller.
A

serve as a contract of employment between the seller and broker.

14
Q

The term “procuring cause” refers to

  • the sales associate who first showed the property to the buyer.
  • a “single agent” for the buyer only.
  • the party who put the sale into effect.
  • the first person to turn the contract in to the seller.
A

the party who put the sale into effect.

15
Q

Which would be the best description of “culpable negligence?”

  • When the sales associate knew or should have known of a defect
  • When the sales associate is negligent in the care of his customer
  • When the sales associate makes a statement that he knows is false
  • When the broker doesn’t watch his sales associates when they perform their duties.
A

When the sales associate knew or should have known of a defect

16
Q

The failure to perform provisions of a contract without a legal excuse is known as

  • an option.
  • a breach.
  • a novation.
  • an assignment.
A

a breach

17
Q

When is a contract terminated?

  • After a cooling period
  • After both parties have signed it
  • After it is performed
  • After the parties agree to their respective promises
A

After it is performed

18
Q

There was an oral agreement for the sale of real estate. This contract would be

  • void and unenforceable.
  • valid and enforceable.
  • not valid because it did not meet Florida’s laws.
  • valid but unenforceable because of the Statute of Frauds.
A

valid but unenforceable because of the Statute of Frauds