Practice Quizzes 4 Flashcards Preview

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Flashcards in Practice Quizzes 4 Deck (30)
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1
Q

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.

A

True

2
Q

______________ are a transactional expense a seller may recover on a buyer’s breach

A

Escrow charges.

Payoff demands

3
Q

Recoverable losses are limited to those a seller incurs from the date of a buyer’s breach until:

A

the earlier of the two dates above.

4
Q

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.

A

True

5
Q

Without a liquidated damages provision, a seller is not entitled to recover their money losses caused by a buyer’s breach.

A

False

6
Q

A liquidated damages provision is voidable if the amount is not reasonably close to actual losses.

A

True

7
Q

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.

A

True

8
Q

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:

A

the arbitrator exceeded their authorized powers.

the arbitrator acted with fraud or corruption

9
Q

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.

A

True

10
Q

Addenda which may be attached to a purchase agreement include:

A

property disclosures..
agency relationship disclosures.
financing disclosures

11
Q

An equity purchase (EP) agreement needs to be in the same language used to negotiate with the seller.

A

True

12
Q

Under EP laws, _______________ are business days.

A

Saturdays.

most state holidays

13
Q

If a buyer’s agent fails to deliver an EP disclosure to the seller, the EP agreement is:

A

voidable by the seller-in-foreclosure.

14
Q

A seller-in-foreclosure may recover their property within ________ after the close of escrow if the EP investor took unconscionable advantage of them.

A

two years

15
Q

Both the lack of meaningful choice and terms unreasonably favorable to the EP investor need to exist to show unconscionability.

A

True

16
Q

To analyze an income property, a buyer’s agent may ask the seller’s agent for:

A

information regarding maintenance procedures..
a rent roll spread sheet.
an occupancy history

17
Q

_______________ is considered cash boot.

A

A carryback promissory note.

Personal property

18
Q

In an option agreement, a prospective buyer is referred to as:

A

an optionee

19
Q

Without consideration, an option is merely an offer to sell which the seller may withdraw.

A

True

20
Q

A particular manner for exercising an option needs to be specified in an option agreement.

A

False

21
Q

A joint tenancy is legally called a severalty ownership.

A

False

22
Q

Both spouses or domestic partners need to consent to the lease for more than one year of community property vested as joint tenants.

A

True

23
Q

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.

A

False

24
Q

A preliminary title report is:

A

an offer to issue a title policy.

25
Q

Encumbrances on title include:

A

covenants, conditions and restrictions..
easements..
assessments and bonds

26
Q

Losses due to eminent domain are excluded from all title insurance coverage.

A

True

27
Q

Which title insurance policy provides the most coverage?

A

ALTA homeowner’s

28
Q

Licensed real estate brokers who represent sellers in real estate transactions where the broker will act as escrow are exempt from escrow licensing requirements.

A

True

29
Q

Escrow officers are required to notify a buyer and seller of any suspicious fact or circumstance when it affects escrows ability to close.

A

True

30
Q

Escrow has a duty to advise a buyer in writing of the Franchise Tax Board (FTB) requirements for withholding ______ of the price paid the seller.

A

3 1/3 %