Rockwell Exam #2
1. Specific Performance Suit
Question: Which of the following people might bring a suit for specific performance?
Answer: A buyer in a real estate transaction in which the seller backed out one day
before closing.
Explanation: Specific performance is a legal remedy where a court orders the breaching
party to fulfill their contractual obligations. Real estate is considered unique, so buyers
can sue sellers to force the sale (rather than just seeking monetary damages).
2. VA-Guaranteed Loan Liability
Question: Once a lender issues a veteran a VA-guaranteed loan, the veteran:
Answer: Immediately becomes liable for the guaranteed amount.
Explanation: The VA guarantees a portion of the loan, but the veteran is personally
responsible for repaying the full loan amount.
3. Property Manager’s Additional Services
Question: A property manager decides to offer additional services beyond the
management agreement. She may do so after:
Answer: The management agreement is amended in a writing signed by the owner and
designated broker.
Explanation: Any changes to the original agreement require a written amendment
signed by all parties.
, 4. Optionee’s Rights Assignment
Question: An optionee's rights can be assigned under all circumstances, except when
the:
Answer: Option money is in the form of a promissory note.
Explanation: If the option money isn’t paid in full (e.g., via a promissory note), the
optionee’s rights may not be assignable.
5. Equal Ownership with Inheritance Rights
Question: Five people buy an investment property with equal shares, and if one dies,
their share passes to heirs. How did they take title?
Answer: Tenancy in common.
Explanation: Tenancy in common allows unequal shares and inheritance rights, unlike
joint tenancy (which requires equal shares and right of survivorship).
6. Homeowner Tax Deductions
Question: For income tax purposes, a homeowner can deduct:
Answer: Property taxes.
Explanation: Homeowners can deduct property taxes and mortgage interest (if
itemizing), but not homeowners' association fees or insurance.
7. Buyer Requests Neighborhood with Specific Demographics
1. Specific Performance Suit
Question: Which of the following people might bring a suit for specific performance?
Answer: A buyer in a real estate transaction in which the seller backed out one day
before closing.
Explanation: Specific performance is a legal remedy where a court orders the breaching
party to fulfill their contractual obligations. Real estate is considered unique, so buyers
can sue sellers to force the sale (rather than just seeking monetary damages).
2. VA-Guaranteed Loan Liability
Question: Once a lender issues a veteran a VA-guaranteed loan, the veteran:
Answer: Immediately becomes liable for the guaranteed amount.
Explanation: The VA guarantees a portion of the loan, but the veteran is personally
responsible for repaying the full loan amount.
3. Property Manager’s Additional Services
Question: A property manager decides to offer additional services beyond the
management agreement. She may do so after:
Answer: The management agreement is amended in a writing signed by the owner and
designated broker.
Explanation: Any changes to the original agreement require a written amendment
signed by all parties.
, 4. Optionee’s Rights Assignment
Question: An optionee's rights can be assigned under all circumstances, except when
the:
Answer: Option money is in the form of a promissory note.
Explanation: If the option money isn’t paid in full (e.g., via a promissory note), the
optionee’s rights may not be assignable.
5. Equal Ownership with Inheritance Rights
Question: Five people buy an investment property with equal shares, and if one dies,
their share passes to heirs. How did they take title?
Answer: Tenancy in common.
Explanation: Tenancy in common allows unequal shares and inheritance rights, unlike
joint tenancy (which requires equal shares and right of survivorship).
6. Homeowner Tax Deductions
Question: For income tax purposes, a homeowner can deduct:
Answer: Property taxes.
Explanation: Homeowners can deduct property taxes and mortgage interest (if
itemizing), but not homeowners' association fees or insurance.
7. Buyer Requests Neighborhood with Specific Demographics
