Practice Quizzes 4 Flashcards
If a breaching buyer records a Notice of Lis Pendens, the seller can recover any decline in the property’s value after the date of the breach until the buyer stops interfering with resale efforts.
True
______________ are a transactional expense a seller may recover on a buyer’s breach
Escrow charges.
Payoff demands
Recoverable losses are limited to those a seller incurs from the date of a buyer’s breach until:
the earlier of the two dates above.
For a seller to keep the entire deposit on the buyer’s breach, the seller needs to provide an accounting showing their losses equaled or exceeded the amount of the deposit.
True
Without a liquidated damages provision, a seller is not entitled to recover their money losses caused by a buyer’s breach.
False
A liquidated damages provision is voidable if the amount is not reasonably close to actual losses.
True
An arbitrator’s award is binding and final, regardless of any defect resulting from an error of fact or law, unless the arbitration provision provided for judicial review.
True
Any defect in the arbitrator’s award resulting from an error of fact or law, no matter how flagrant, is neither reviewable nor correctable, unless:
the arbitrator exceeded their authorized powers.
the arbitrator acted with fraud or corruption
Even if an arbitrator bases their decision on an incorrect interpretation of the facts or the law, neither party has recourse to change the erroneous decision.
True
Addenda which may be attached to a purchase agreement include:
property disclosures..
agency relationship disclosures.
financing disclosures
An equity purchase (EP) agreement needs to be in the same language used to negotiate with the seller.
True
Under EP laws, _______________ are business days.
Saturdays.
most state holidays
If a buyer’s agent fails to deliver an EP disclosure to the seller, the EP agreement is:
voidable by the seller-in-foreclosure.
A seller-in-foreclosure may recover their property within ________ after the close of escrow if the EP investor took unconscionable advantage of them.
two years
Both the lack of meaningful choice and terms unreasonably favorable to the EP investor need to exist to show unconscionability.
True
To analyze an income property, a buyer’s agent may ask the seller’s agent for:
information regarding maintenance procedures..
a rent roll spread sheet.
an occupancy history
_______________ is considered cash boot.
A carryback promissory note.
Personal property
In an option agreement, a prospective buyer is referred to as:
an optionee
Without consideration, an option is merely an offer to sell which the seller may withdraw.
True
A particular manner for exercising an option needs to be specified in an option agreement.
False
A joint tenancy is legally called a severalty ownership.
False
Both spouses or domestic partners need to consent to the lease for more than one year of community property vested as joint tenants.
True
When the co-ownership of property is vested as tenants in common, the death of a coowner automatically extinguishes the deceased co-owner’s interest in the property.
False
A preliminary title report is:
an offer to issue a title policy.
