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Flashcards in N5 Purchase Contracts Deck (38)
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1

The Three purposes of a Purchase Agreement.

a.
b.
c.

a. Copy of the offeror’s offer
b. Legally binding contract upon acceptance
c. Escrow instructions

2

An invitation to enter a contract.

Offer

3

The parties to an offer are:
1.
2.

1. Offeror
2. Offeree

4

When may the offeror withdraw the offer?

Anytime

5

__________ offers must be submitted to an offeree.

All

6

When licensees purchases or sells a property for themselves they must disclose their_____.

Licensed Status "Owner Agent"

7

An offer made by an offeree in response to the offer.

Counter Offer

8

Any change to any offer is considered to be a ___.

Counter Offer

9

When any change is made to an offer the original offer is:

Null & Void

10

Binding Contract

The acceptance of an offer and communication of that acceptance to the offer.

11

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

Equitable Title

12

If a buyer or seller dies, an executory purchase agreement is said to be binding on the_____.

Heirs or Estate

13

Money given by the offeror to show good faith.

Earnest Money

14

Earnest money is usually held by the _____ broker.

Buyer's

15

The amount of earnest money is:

Negotiable

16

In an Arizona Purchase agreement, the form of earnest money _____________.

must be stated in the agreement

17

In Arizona, a sales person must turn over earnest money to the broker ______.

immediately/promptly

18

In Arizona, unless otherwise agreed to __ _____ the broker must ______place earnest money in a _____ or __ _____.

in writing, immediately, trust, in escrow.

19

Comingling

Mixing Client's funds with broker's business funds.

20

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

Conversion

21

Any provision dictating that a contract is dependent on the happening of a certain event.

Contingency.

22

Mortgage Contingency

Any provision dictating that a contract is dependent on the obtaining financing.

23

The evidence of termite damage could be ____ or ____.

rotted wood or cellulose debris

24

Escrow

A neutral third party hired to close a transaction.

25

When there is conflict between any pre-printed wording and wording written into the contract, the _____ ______ prevails.

Written Word

26

An apportionment of funds between the parties for unpaid or pre-paid items such as taxes, insurance or interest.

Proration

27

The phrase that specifies the importance of completing terms of a contract on a timely basis.

“Time is of the Essence"

28

The evidence to a buyer that title is clear.

Title Insurance Policy

29

An amount that was pre-determined by the parties to be the total amount of compensation an injured party will receive if the other party breaches the contract is known as _______.

Liquidated Damages

30

Specific Performance

A court order given to enforce the provisions of a contract.