Chapter 11 Practice Exam Questions 2024.

Chapter 11 Practice Exam Questions 2024. 1. Which of the following is an example of a unilateral contract? (a) Purchase and sale contract (b) Contract for deed (c) Open listing contract (d) Oral contract - correct answer (c) Open listing contract What is consideration? - correct answer Promise to pay or love and affection. It can be verbal does not need a deposit what is the best way to terminate a contract? - correct answer performance What law prohibits the use of lead base paint? - correct answer Federal Law of Jan. 1 1978 Does a S/A have to disclose all facts that materially affect the value of residential real property? - correct answer Yes if they are not readily observable to the buyer, includes the purchase and sale contract. When in doubt disclose If you do not want to disclose what must you do? - correct answer Have it visible to the public When must the property tax disclosure be presented to the purchaser? - correct answer disclosure summary must be represented at or before execution of the contract for sale Procuring clause mean? - correct answer willling, ready and able to buy can an open listing go on MLS - correct answer NO What is meant when FS 720.401 is written on disclosure summary? - correct answer HOA disclosure - meaning it is mandatory membership 2. In which circumstance is a broker's commission subject to forfeiture? (a) The broker has an oral listing contract. (b) The broker fails to obtain witnesses to a real estate sales contract. (c) The broker performs according to the employment contract. (d) The broker violates a fiduciary duty. - correct answer (d) The broker violates a fiduciary duty. What is the best way to terminate a contract? - correct answer Performance Why would you suit for performance ? - correct answer When you don't want deposit back but you want action. IE force the buyer to close on the contract what are the two types of damages and how do they differ? - correct answer 1) Liquidated - agreed in contract i.e., escrow deposit 2) Unliquidated - not in contract, compensatory damages, only way to get is in front of judge IE. person closed two week late and you needed to stay in a hotel. Sue for cost of hotel etc.