PERRY REAL ESTATE FINAL EXAM
QUESTIONS AND ANSWERS
If-I-am-makes-an-offer-on-a-house-and-the-seller-excepts-in-writing.-What-is-the-current-
status-of-this-relationship?---ans-✔✔Because-the-seller-has-promised-to-sell-and-the-
buyer-has-promised-to-buy,-it-is-clearly-a-bilateral-contract.-It-is-express-because-they-
announced-their-intentions-in-writing.-This-contract-is-executory-because-the-sale-has-not-
closed-yet
Additional-conditions-that-must-be-satisfied-before-a-sales-contract-is-fully-enforceable-
are-called---ans-✔✔contingencies
If-I'm-in-allows-a-woman-to-back-out-of-the-contract,-returned-the-earnest-money-to-her,-
and-both-are-back-to-the-positions-they-held-before-the-contract,-the-contract-has-been---
ans-✔✔Rescission-allows-both-parties-to-return-to-their-original-possessions-before-the-
contract,-so-any-monies-exchange-must-be-returned
A-buyer-makes-an-offer-to-buy-a-sellers-house.-Pursuant-it-to-this-offer,-the-buyer-is-
obligated-to-perform-only-if-the-buyer-is-first-able-to-sell-her-condo.-This-is-an-example-of---
ans-✔✔A-property-sale-contingency-protects-a-buyer-who-has-to-sell-a-property-in-order-
to-buy-the-sellers-property
On-March-7-a-buyer-and-a-seller-execute-a-contract-for-the-purchase-of-the-sellers-
property.-Closing-is-set-for-June-10.-On-April-15-the-property-is-struck-by-lightning-and-
destroyed-by-the-resulting-fire.-If-the-uniform-vendor-and-purchase-or-risk-act-has-been-
adopted-by-the-state-in-which-the-property-is-located,-which-party-bears-liability-for-the-
loss?---ans-✔✔In-states-that-have-adopted-the-uniform-vendor-and-purchaser-act,-the-
seller-remains-responsible-for-the-property-until-the-day-of-closing
The-term-statue-of-limitation-is-best-described-as-the-limitation-on-the---ans-✔✔Every-
state-limits-the-right-during-which-parties-to-a-contract-may-bring-a-legal-action-to-enforce-
their-rights.-Rights-not-enforced-within-the-Applicable-time-period-Are-lost
In-case-the-buyer-decides-not-to-buy-for-no-legal-reason,-the-contract-may-provide-at-the-
earnest-money-is-there-as---ans-✔✔Liquidated-damages-limit-the-compensation-
available-to-the-injured-party-should-a-breach-of-contract-occur
, What-is-minimum-consideration-in-a-valid-contract---ans-✔✔Anything-the-parties-agree-is-
good-and-valuable
What-is-an-example-of-a-unilateral-contract---ans-✔✔In-a-unilateral-contract-only-one-
party-is-obligated-to-perform.-The-optionor-owner-of-the-property-must-sell-at-the-agreed-
upon-price-only-if-the-optionee-he-decides-to-buy
A-woman-is-buying-a-man's-house-and-wants-to-take-over-the-mortgage.-The-lender-
releases-the-man-from-the-obligation-substituting-the-woman-as-the-party-liable-for-the-
debt.-This-new-agreement-is-called---ans-✔✔Novation
A-real-estate-broker-in-ounces-to-the-sales-people-in-her-office-that-she-will-pay-$1000-
bonus-to-the-top-selling-sales-person-each-quarter.-This-contract-is-an---ans-✔✔The-offer-
of-a-bonus-to-the-top-selling-sales-person-each-quarter-is-an-express-contract-because-
the-broker-clearly-stated-her-intentions-and-words-to-the-sales-people.-It-is-unilateral-
contract-because-she's-obligated-to-keep-her-promise-but-the-sales-people-are-not-
obligated-to-perform
A-testamentary-trust-is-created-by---ans-✔✔A-will
In-any-Township-what-is-the-number-of-the-section-designated-as-the-school-section---ans-
✔✔16
Lonnie-conveys-the-ownership-of-his-house-to-his-mother-and-stipulates-that-upon-her-
death-he-will-recapture-ownership.-The-interest-Lonnie-has-in-the-property-is-a---ans-
✔✔reversionary-interest
If-a-creator-of-a-life-estate-chooses-not-to-name-my-remainderman-the-creator-has---ans-
✔✔The-property-will-revert-back-to-the-creator
A-descendent-left-a-will-giving-his-neighbor-the-right-to-use-a-well-on-the-descendents-
land-as-long-as-the-neighbor-lived.-The-neighbors-interest-in-the-property-is-properly-
called---ans-✔✔An-easement-in-gross-is-an-individual-interest-in-someone-else's-land
A-lawsuit-to-terminate-an-easement-is-called-an-action-to---ans-✔✔Action-to-quiet-title
If-an-adjacent-public-land-use-diminishes-the-value-of-your-property-you-may-claim-
compensation-under-which-theory---ans-✔✔Inverse-condemnation
The-process-by-which-government-can-acquire-ownership-of-private-land-for-public-use-
is---ans-✔✔Condemnation
A-partnership-which-is-for-a-long-term-arrangement-is-called---ans-✔✔Syndicate
QUESTIONS AND ANSWERS
If-I-am-makes-an-offer-on-a-house-and-the-seller-excepts-in-writing.-What-is-the-current-
status-of-this-relationship?---ans-✔✔Because-the-seller-has-promised-to-sell-and-the-
buyer-has-promised-to-buy,-it-is-clearly-a-bilateral-contract.-It-is-express-because-they-
announced-their-intentions-in-writing.-This-contract-is-executory-because-the-sale-has-not-
closed-yet
Additional-conditions-that-must-be-satisfied-before-a-sales-contract-is-fully-enforceable-
are-called---ans-✔✔contingencies
If-I'm-in-allows-a-woman-to-back-out-of-the-contract,-returned-the-earnest-money-to-her,-
and-both-are-back-to-the-positions-they-held-before-the-contract,-the-contract-has-been---
ans-✔✔Rescission-allows-both-parties-to-return-to-their-original-possessions-before-the-
contract,-so-any-monies-exchange-must-be-returned
A-buyer-makes-an-offer-to-buy-a-sellers-house.-Pursuant-it-to-this-offer,-the-buyer-is-
obligated-to-perform-only-if-the-buyer-is-first-able-to-sell-her-condo.-This-is-an-example-of---
ans-✔✔A-property-sale-contingency-protects-a-buyer-who-has-to-sell-a-property-in-order-
to-buy-the-sellers-property
On-March-7-a-buyer-and-a-seller-execute-a-contract-for-the-purchase-of-the-sellers-
property.-Closing-is-set-for-June-10.-On-April-15-the-property-is-struck-by-lightning-and-
destroyed-by-the-resulting-fire.-If-the-uniform-vendor-and-purchase-or-risk-act-has-been-
adopted-by-the-state-in-which-the-property-is-located,-which-party-bears-liability-for-the-
loss?---ans-✔✔In-states-that-have-adopted-the-uniform-vendor-and-purchaser-act,-the-
seller-remains-responsible-for-the-property-until-the-day-of-closing
The-term-statue-of-limitation-is-best-described-as-the-limitation-on-the---ans-✔✔Every-
state-limits-the-right-during-which-parties-to-a-contract-may-bring-a-legal-action-to-enforce-
their-rights.-Rights-not-enforced-within-the-Applicable-time-period-Are-lost
In-case-the-buyer-decides-not-to-buy-for-no-legal-reason,-the-contract-may-provide-at-the-
earnest-money-is-there-as---ans-✔✔Liquidated-damages-limit-the-compensation-
available-to-the-injured-party-should-a-breach-of-contract-occur
, What-is-minimum-consideration-in-a-valid-contract---ans-✔✔Anything-the-parties-agree-is-
good-and-valuable
What-is-an-example-of-a-unilateral-contract---ans-✔✔In-a-unilateral-contract-only-one-
party-is-obligated-to-perform.-The-optionor-owner-of-the-property-must-sell-at-the-agreed-
upon-price-only-if-the-optionee-he-decides-to-buy
A-woman-is-buying-a-man's-house-and-wants-to-take-over-the-mortgage.-The-lender-
releases-the-man-from-the-obligation-substituting-the-woman-as-the-party-liable-for-the-
debt.-This-new-agreement-is-called---ans-✔✔Novation
A-real-estate-broker-in-ounces-to-the-sales-people-in-her-office-that-she-will-pay-$1000-
bonus-to-the-top-selling-sales-person-each-quarter.-This-contract-is-an---ans-✔✔The-offer-
of-a-bonus-to-the-top-selling-sales-person-each-quarter-is-an-express-contract-because-
the-broker-clearly-stated-her-intentions-and-words-to-the-sales-people.-It-is-unilateral-
contract-because-she's-obligated-to-keep-her-promise-but-the-sales-people-are-not-
obligated-to-perform
A-testamentary-trust-is-created-by---ans-✔✔A-will
In-any-Township-what-is-the-number-of-the-section-designated-as-the-school-section---ans-
✔✔16
Lonnie-conveys-the-ownership-of-his-house-to-his-mother-and-stipulates-that-upon-her-
death-he-will-recapture-ownership.-The-interest-Lonnie-has-in-the-property-is-a---ans-
✔✔reversionary-interest
If-a-creator-of-a-life-estate-chooses-not-to-name-my-remainderman-the-creator-has---ans-
✔✔The-property-will-revert-back-to-the-creator
A-descendent-left-a-will-giving-his-neighbor-the-right-to-use-a-well-on-the-descendents-
land-as-long-as-the-neighbor-lived.-The-neighbors-interest-in-the-property-is-properly-
called---ans-✔✔An-easement-in-gross-is-an-individual-interest-in-someone-else's-land
A-lawsuit-to-terminate-an-easement-is-called-an-action-to---ans-✔✔Action-to-quiet-title
If-an-adjacent-public-land-use-diminishes-the-value-of-your-property-you-may-claim-
compensation-under-which-theory---ans-✔✔Inverse-condemnation
The-process-by-which-government-can-acquire-ownership-of-private-land-for-public-use-
is---ans-✔✔Condemnation
A-partnership-which-is-for-a-long-term-arrangement-is-called---ans-✔✔Syndicate
