PERRY REAL ESTATE FINAL EXAM
QUESTIONS AND CORRECT ANSWERS
Q: 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
Q: Additional conditions that must be satisfied before a sales contract is fully
enforceable are called
Ans: contingencies
Q: 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
Q: 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
Q: 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
Q: 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
Q: 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
Q: What is minimum consideration in a valid contract
Ans: Anything the parties agree is good and valuable
Q: 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
Q: 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
Q: 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
Q: A testamentary trust is created by
Ans: A will
Q: In any Township what is the number of the section designated as the
school section
Ans: 16
Q: 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
Q: 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
Q: 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
Q: A lawsuit to terminate an easement is called an action to
Ans: Action to quiet title
Q: If an adjacent public land use diminishes the value of your property
you may claim compensation under which theory
Ans: Inverse condemnation
Q: The process by which government can acquire ownership of private land
for public use is
Ans: Condemnation
Q: A partnership which is for a long-term arrangement is called
Ans: Syndicate
Q: This is a special type of zoning used to control density by imposing
restriction such as setbacks
Ans: Bulk zoning
Q: A manufactured home can be turned into real estate by what process
Ans: AFFIXATION
QUESTIONS AND CORRECT ANSWERS
Q: 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
Q: Additional conditions that must be satisfied before a sales contract is fully
enforceable are called
Ans: contingencies
Q: 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
Q: 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
Q: 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
Q: 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
Q: 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
Q: What is minimum consideration in a valid contract
Ans: Anything the parties agree is good and valuable
Q: 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
Q: 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
Q: 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
Q: A testamentary trust is created by
Ans: A will
Q: In any Township what is the number of the section designated as the
school section
Ans: 16
Q: 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
Q: 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
Q: 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
Q: A lawsuit to terminate an easement is called an action to
Ans: Action to quiet title
Q: If an adjacent public land use diminishes the value of your property
you may claim compensation under which theory
Ans: Inverse condemnation
Q: The process by which government can acquire ownership of private land
for public use is
Ans: Condemnation
Q: A partnership which is for a long-term arrangement is called
Ans: Syndicate
Q: This is a special type of zoning used to control density by imposing
restriction such as setbacks
Ans: Bulk zoning
Q: A manufactured home can be turned into real estate by what process
Ans: AFFIXATION
