Modern Real Estate ACTUAL
QUESTIONS AND CORRECT ANSWERS
two ways to have a concurrent conflict - CORRECT ANSWERS✅✅1. representation of one
client will be directly adverse to another client; and
2. Significant risk that representation of one client will be materially limited by
responsibilities to another client
Exception to concurrent conflict (4 elements) - CORRECT ANSWERS✅✅even if there is a
concurrent conflict, can still represent if:
1. Reasonably believes will be able to provide competent and diligent representation;
2. Representation is not prohibited by law;
3. Does not involve dueling claims, that is one client asserting a claim against another client
in the same litigation; and
4. each client gives informed consent confirmed in writing
Current broker rule when seller is liable (Tristian Landing case) - CORRECT
ANSWERS✅✅Traditional rule: if broker produces a ready, willing, and able buyer, who
subsequently enters into a binding contract with the seller, broker is entitled to commission.
Current rule adds a 3rd element: purchaser completes the transaction by closing the title in
accordance with the provisions of the contract.
If the transaction is not completed b/c of buyer, broker no right to commission. If deal falls
through b/c of seller, broker does have the right to commission.
Broker's duties to buyers and sellers (relaying misrepresentation) - CORRECT
ANSWERS✅✅A broker is not liable for innocent misrepresentations of material facts made
to a buyer. Only liable if the misrep is negligent; that is, they KOSHK representations were
false.
So, if a seller misrepresents something to the broker and the broker has no reason to doubt its
validity, the broker is not liable for relaying the misrepresentation.
,Also, no duty arises for a broker to investigate a seller's statements unless the circumstances
indicate a reason to do so, again KOSHK.
4 types of listing agreements - CORRECT ANSWERS✅✅Exclusive right to sell: broker
gets commission no matter who sells it.
Exclusive agency: only get commission if listing broker, or any other broker sells it. If
homeowner sells it, no commission.
Open listing (or non-exclusive): eat what you kill. Free game for any broker, whoever sells it
get the commission.
Net listing: Seller and broker agree on a price, anything above that price goes to broker.
4 Risk of loss rules - CORRECT ANSWERS✅✅1. Equitable conversion: places the risk of
loss on the vendee from the moment of contracting.
If specifically enforceable contract for the sale of land, equity regards as done that which
aught to be done.
2. Transfer of title: places risk of loss on vendor until transfer of legal title is complete.
3. places risk of loss on whoever is in physical possession of the property at the time of the
loss.
- if the vendee is not in possession of the property, and a material casualty loss occurs without
the vendee's fault during the executory period, the vendee is entitled to rescind the contract
and recover any payments made on the property, or, in the alternative, to have partial specific
performance of the contract with an abatement in the purchase price to compensate for the
loss.
4. UVPRA (title possession combo): Places risk of loss on seller until transfer of title or
possession.
NOTE: LEGAL RIGHT TO POSSESSION=POSSESSION EVEN IF DON'T ACTUALLY
TAKE POSSESSION
SOF writing requirements - CORRECT ANSWERS✅✅1. Be in writing;
2. Signed by the party to be charged;
, 3. contain the essential terms (parties, description of the property to the exclusion of all other
pieces of property, and price).
3 exceptions to SOF - CORRECT ANSWERS✅✅1. Part performance-payment of all or part
of the purchase price, possession, and substantial improvement of the property.
2. Promissory estoppel—reasonable, justifiable, foreseeable, and substantial economic
reliance on the other party's promise.
3. Admission—admitting to the existence of a contact in a way that suggests they are bound
by it.
Burr case: down payment alone is not enough to enforce a verbal land sale agreement.
earnest money and down payment - CORRECT ANSWERS✅✅Earnest: money paid at the
time of a contract to show good faith of the buyer.
Down: money paid at the time of closing related to lender approval. typically 20% of total
price.
essential terms in a financing condition - CORRECT ANSWERS✅✅interest rate and
monthly payment.
Courts impose a good faith requirement, buyers must pursue financing in good faith.
Appraisal - CORRECT ANSWERS✅✅value of a piece of property calculated by an
unbiased professional
Marketable title - CORRECT ANSWERS✅✅so free from defect that a court will legally
force its acceptance from buyer because a reasonable person would not doubt its validity and
its free from an unreasonable risk of litigation.
Always implied, unless specifically excluded.
Majority default rule: mere existence of a covenant makes title unmarketable.
QUESTIONS AND CORRECT ANSWERS
two ways to have a concurrent conflict - CORRECT ANSWERS✅✅1. representation of one
client will be directly adverse to another client; and
2. Significant risk that representation of one client will be materially limited by
responsibilities to another client
Exception to concurrent conflict (4 elements) - CORRECT ANSWERS✅✅even if there is a
concurrent conflict, can still represent if:
1. Reasonably believes will be able to provide competent and diligent representation;
2. Representation is not prohibited by law;
3. Does not involve dueling claims, that is one client asserting a claim against another client
in the same litigation; and
4. each client gives informed consent confirmed in writing
Current broker rule when seller is liable (Tristian Landing case) - CORRECT
ANSWERS✅✅Traditional rule: if broker produces a ready, willing, and able buyer, who
subsequently enters into a binding contract with the seller, broker is entitled to commission.
Current rule adds a 3rd element: purchaser completes the transaction by closing the title in
accordance with the provisions of the contract.
If the transaction is not completed b/c of buyer, broker no right to commission. If deal falls
through b/c of seller, broker does have the right to commission.
Broker's duties to buyers and sellers (relaying misrepresentation) - CORRECT
ANSWERS✅✅A broker is not liable for innocent misrepresentations of material facts made
to a buyer. Only liable if the misrep is negligent; that is, they KOSHK representations were
false.
So, if a seller misrepresents something to the broker and the broker has no reason to doubt its
validity, the broker is not liable for relaying the misrepresentation.
,Also, no duty arises for a broker to investigate a seller's statements unless the circumstances
indicate a reason to do so, again KOSHK.
4 types of listing agreements - CORRECT ANSWERS✅✅Exclusive right to sell: broker
gets commission no matter who sells it.
Exclusive agency: only get commission if listing broker, or any other broker sells it. If
homeowner sells it, no commission.
Open listing (or non-exclusive): eat what you kill. Free game for any broker, whoever sells it
get the commission.
Net listing: Seller and broker agree on a price, anything above that price goes to broker.
4 Risk of loss rules - CORRECT ANSWERS✅✅1. Equitable conversion: places the risk of
loss on the vendee from the moment of contracting.
If specifically enforceable contract for the sale of land, equity regards as done that which
aught to be done.
2. Transfer of title: places risk of loss on vendor until transfer of legal title is complete.
3. places risk of loss on whoever is in physical possession of the property at the time of the
loss.
- if the vendee is not in possession of the property, and a material casualty loss occurs without
the vendee's fault during the executory period, the vendee is entitled to rescind the contract
and recover any payments made on the property, or, in the alternative, to have partial specific
performance of the contract with an abatement in the purchase price to compensate for the
loss.
4. UVPRA (title possession combo): Places risk of loss on seller until transfer of title or
possession.
NOTE: LEGAL RIGHT TO POSSESSION=POSSESSION EVEN IF DON'T ACTUALLY
TAKE POSSESSION
SOF writing requirements - CORRECT ANSWERS✅✅1. Be in writing;
2. Signed by the party to be charged;
, 3. contain the essential terms (parties, description of the property to the exclusion of all other
pieces of property, and price).
3 exceptions to SOF - CORRECT ANSWERS✅✅1. Part performance-payment of all or part
of the purchase price, possession, and substantial improvement of the property.
2. Promissory estoppel—reasonable, justifiable, foreseeable, and substantial economic
reliance on the other party's promise.
3. Admission—admitting to the existence of a contact in a way that suggests they are bound
by it.
Burr case: down payment alone is not enough to enforce a verbal land sale agreement.
earnest money and down payment - CORRECT ANSWERS✅✅Earnest: money paid at the
time of a contract to show good faith of the buyer.
Down: money paid at the time of closing related to lender approval. typically 20% of total
price.
essential terms in a financing condition - CORRECT ANSWERS✅✅interest rate and
monthly payment.
Courts impose a good faith requirement, buyers must pursue financing in good faith.
Appraisal - CORRECT ANSWERS✅✅value of a piece of property calculated by an
unbiased professional
Marketable title - CORRECT ANSWERS✅✅so free from defect that a court will legally
force its acceptance from buyer because a reasonable person would not doubt its validity and
its free from an unreasonable risk of litigation.
Always implied, unless specifically excluded.
Majority default rule: mere existence of a covenant makes title unmarketable.
