PROMULGATED CONTRACTS UPDATED FINAL EXAM
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔The difference in an administration and an execurtix is - ✔✔None of the above
✔✔Regarding legal description for a property in an incorporated city there is likely -
✔✔A lot and block numbering system
✔✔Paragraph 2 is different because - ✔✔It describes the type of property that is
covered
✔✔If there are lender required repairs the buyer has the right to - ✔✔Terminate, if the
costs of those repairs exceeds 5% of the sales price
✔✔Brokerage fees are - ✔✔To be addressed in separate written agreements and not in
the contract
✔✔If the closing date needs to extended, - ✔✔It will requiere all parties to sign an
amendment to the contract
✔✔Paragraph 11 may be used for - ✔✔The legal names that do not fit in paragraph 1
and 2
✔✔When buyers and sellers agree to "divide up" income and expenses form a property
based upon date of closing - ✔✔This is known as proration
✔✔Earnest money serves as - ✔✔Evidence of the buyer's intention to carry out the
terms of the contract in good faith
✔✔Earnest money must be deposited with the escrow agent - ✔✔By the close of the
second business day following the signing of the agreement
✔✔The option fee allows for the - ✔✔Unrestricted right to terminate the contract by
giving notice of termination to the seller within a predetermined amount of days after the
effective date of the contract
✔✔Title insurance - ✔✔Indemnifies the buyer from financial loss in the event of title
failure
✔✔Restrictive covenants are - ✔✔deed restrictions that apply to a group of homes or
lots and a property that is part of a specific subdivision
✔✔A residential property affidavit (t-47) form is - ✔✔Furnished with the existing property
survey
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔The difference in an administration and an execurtix is - ✔✔None of the above
✔✔Regarding legal description for a property in an incorporated city there is likely -
✔✔A lot and block numbering system
✔✔Paragraph 2 is different because - ✔✔It describes the type of property that is
covered
✔✔If there are lender required repairs the buyer has the right to - ✔✔Terminate, if the
costs of those repairs exceeds 5% of the sales price
✔✔Brokerage fees are - ✔✔To be addressed in separate written agreements and not in
the contract
✔✔If the closing date needs to extended, - ✔✔It will requiere all parties to sign an
amendment to the contract
✔✔Paragraph 11 may be used for - ✔✔The legal names that do not fit in paragraph 1
and 2
✔✔When buyers and sellers agree to "divide up" income and expenses form a property
based upon date of closing - ✔✔This is known as proration
✔✔Earnest money serves as - ✔✔Evidence of the buyer's intention to carry out the
terms of the contract in good faith
✔✔Earnest money must be deposited with the escrow agent - ✔✔By the close of the
second business day following the signing of the agreement
✔✔The option fee allows for the - ✔✔Unrestricted right to terminate the contract by
giving notice of termination to the seller within a predetermined amount of days after the
effective date of the contract
✔✔Title insurance - ✔✔Indemnifies the buyer from financial loss in the event of title
failure
✔✔Restrictive covenants are - ✔✔deed restrictions that apply to a group of homes or
lots and a property that is part of a specific subdivision
✔✔A residential property affidavit (t-47) form is - ✔✔Furnished with the existing property
survey
