Fill in the Blank Q&A-Purchase Contracts

Question 1

A ? expresses a party’s intention to buy a property without creating a binding contract.
*hint: usually used in commercial transactions and rarely used in residential transactions

Answer 1

Letter of Intent

Question 2

The individual to whom an offer is made is the ?

Answer 2

Offeree

Question 3

Any change to the original offer creates a ?

Answer 3

counteroffer

Question 4

The individual who is making the offer is the ?

Answer 4

Offeror

Question 5

If a seller changes any terms of an offer, the original offer is ?

Answer 5

null and void

Question 6

? offers must be promptly submitted to an offeree.

Answer 6

All verbal and written offers

Question 7

The responsibility of notifying the offeror of acceptance belongs to the ?

Answer 7

The broker

Question 8

When a licensee purchases or sells a property for themselves they must disclose their ?

Answer 8

licensed status

Question 9

Once a purchase agreement becomes binding, the buyer is said to have ?

Answer 9

equitable title

Question 10

Unless prohibited in the agreement, ? may be assigned to third parties
*hint: sublease

Answer 10

purchase contracts and leases

Question 11

The term ? is used to indicate that someone other than the party named in the contract will complete the transaction

Answer 11

“or Nominee”

Question 12

The earnest money is given to show the buyer’s ?

Answer 12

good faith intention
*In AZ it is usually held by and deposited by the buyer’s broker

Question 13

A broker who mixes personal money w/ trust funds is guilty of ?

Answer 13

Commingling

Question 14

In an AZ purchase agreement, the form of earnest money must…?

Answer 14

be stated in contract by licensee

Question 15

The use of a client’s funds for the agent’s own use is ?

Answer 15

Conversion

Question 16

By agreement in the contract, earnest money for ? is usually placed in the seller’s business account

Answer 16

new home sales