Module 2 Flashcards
which does not hold a leasehold estate
Life tenant
The purchaser in a real estate sales contract breaches the contract and does not go through with the purchase. The contract stipulates that the seller may keep the earnest money. This is known as
liquited damages
In a sale-leaseback agreement,
the grantor becomes the lessee
Which of the following is essential for any contract?
Consideration– means, how much? what’s the price
A bank that insists on a $20,000 down payment to purchase a $100,000 home
requires
an 80% loan-to-value ratio
Which of the following is a listing whose consideration is not based on a
percentage of the selling price?
A net listing (it’s illegal)
Options and “first refusals”
place an obligation only on the optionor
Regulation of non-marine waters and certain activities in designated wetlands areas
in New Jersey is the responsibility of:
Environmental Protection Agency
Department of Environmental Protection
Department of Homeland Security
The county in which the property is located
If the owners of a property sell it themselves, even though they have an exclusive
agency listing with a broker, they owe the broker:
the full commission
one-half the commission
a commission that must be settled through arbitration
no commission
Compliance with the Lead Based Paint Hazard Reduction Act is important to real estate agents because its regulations specifically require real estate agents
to ensure compliance
Contracts can be either bilateral or unilateral. Which of the following is a unilateral contract?
a reward.
a voidable contract.
an executory contract.
a partially performed contract.
Regulation Z requires the disclosure of which of the following?
APR
type of listing which is not permitted for use in New Jersey is the:
Net listing
A contract that has been fully performed by the parties is called a(an)
executory contract
voidable contract
executed contract
consolidated contract
What are the four essential elements of a valid contract?
competent parties, offer and acceptance consideration, warranty, and written expression
competent parties, offer and acceptance, consideration, and legality of object
offer and acceptance, consideration, written expression, and warranty
offer and acceptance, competent parties, consideration, and notice
When a purchaser buys subject to an existing mortgage,
the purchaser is not personally liable for the note or bond
The lease that requires no advance notification to terminate it at the end of its term is called
a periodic estate
a month to month lease
an estate for years
a year to year lease
In order to convert an oral agreement for the sale of a property into a written listing, the broker must deliver a written memorandum of the agreement to the client within how many days?
5 days
Land contracts are a means of
leasing
subdividing
seller financing
purchasing vacant lots
If Barbara is legally occupying and using a single family structure, her
interest in real estate could not include which of the following?
Leasehold estate
Life estate
Tenancy at sufferance
Fee simple estate
The procedure by which a party to a contract is fully discharged of all
responsibility and another party takes his or her place with agreement by both
parties is known as
rescission
revocation
novation
an nullification
Which of the following most accurately describes a property manager?
Trustee
Escrow agent
Client
Fiduciary
Any real estate sale contract is not valid if
it does not contain an adequate description of the property
A listing contract in which the listing broker’s commission is based upon
procuring a buyer before the property is sold by the owner or another broker is
an exclusive agency listing
an open listing
an exclusive right to sell listing
a multiple listing
