PERRY REAL ESTATE FINAL EXAM
QUESTIONS WITH VERIFIED
ANSWERS [2026/2027]
If I am makes an offer on a house and the seller excepts in writing. What is the current status of
this relationship? - Correct Answers -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
Additional conditions that must be satisfied before a sales contract is fully enforceable are called
- Correct Answers -contingencies
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 - Correct
Answers -Rescission allows both parties to return to their original possessions before the
contract, so any monies exchange must be returned
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 - Correct Answers -
A property sale contingency protects a buyer who has to sell a property in order to buy the
sellers property
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? - Correct Answers -In
states that have adopted the uniform vendor and purchaser act, the seller remains responsible
for the property until the day of closing
The term statue of limitation is best described as the limitation on the - Correct Answers -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
,In case the buyer decides not to buy for no legal reason, the contract may provide at the
earnest money is there as - Correct Answers -Liquidated damages limit the compensation
available to the injured party should a breach of contract occur
What is minimum consideration in a valid contract - Correct Answers -Anything the parties
agree is good and valuable
What is an example of a unilateral contract - Correct Answers -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
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 - Correct Answers -Novation
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 - Correct Answers -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
A testamentary trust is created by - Correct Answers -A will
In any Township what is the number of the section designated as the school section - Correct
Answers -16
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 - Correct Answers -
reversionary interest
, If a creator of a life estate chooses not to name my remainderman the creator has - Correct
Answers -The property will revert back to the creator
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 - Correct
Answers -An easement in gross is an individual interest in someone else's land
A lawsuit to terminate an easement is called an action to - Correct Answers -Action to quiet title
If an adjacent public land use diminishes the value of your property you may claim
compensation under which theory - Correct Answers -Inverse condemnation
The process by which government can acquire ownership of private land for public use is -
Correct Answers -Condemnation
A partnership which is for a long-term arrangement is called - Correct Answers -Syndicate
This is a special type of zoning used to control density by imposing restriction such as setbacks -
Correct Answers -Bulk zoning
A manufactured home can be turned into real estate by what process - Correct Answers -
AFFIXATION
A developer grants a local power company the right to install necessary transmission lines. This
right is an example of a - Correct Answers -Easement in gross
The beneficiary of a land trust is also commonly - Correct Answers -The trustor
QUESTIONS WITH VERIFIED
ANSWERS [2026/2027]
If I am makes an offer on a house and the seller excepts in writing. What is the current status of
this relationship? - Correct Answers -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
Additional conditions that must be satisfied before a sales contract is fully enforceable are called
- Correct Answers -contingencies
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 - Correct
Answers -Rescission allows both parties to return to their original possessions before the
contract, so any monies exchange must be returned
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 - Correct Answers -
A property sale contingency protects a buyer who has to sell a property in order to buy the
sellers property
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? - Correct Answers -In
states that have adopted the uniform vendor and purchaser act, the seller remains responsible
for the property until the day of closing
The term statue of limitation is best described as the limitation on the - Correct Answers -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
,In case the buyer decides not to buy for no legal reason, the contract may provide at the
earnest money is there as - Correct Answers -Liquidated damages limit the compensation
available to the injured party should a breach of contract occur
What is minimum consideration in a valid contract - Correct Answers -Anything the parties
agree is good and valuable
What is an example of a unilateral contract - Correct Answers -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
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 - Correct Answers -Novation
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 - Correct Answers -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
A testamentary trust is created by - Correct Answers -A will
In any Township what is the number of the section designated as the school section - Correct
Answers -16
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 - Correct Answers -
reversionary interest
, If a creator of a life estate chooses not to name my remainderman the creator has - Correct
Answers -The property will revert back to the creator
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 - Correct
Answers -An easement in gross is an individual interest in someone else's land
A lawsuit to terminate an easement is called an action to - Correct Answers -Action to quiet title
If an adjacent public land use diminishes the value of your property you may claim
compensation under which theory - Correct Answers -Inverse condemnation
The process by which government can acquire ownership of private land for public use is -
Correct Answers -Condemnation
A partnership which is for a long-term arrangement is called - Correct Answers -Syndicate
This is a special type of zoning used to control density by imposing restriction such as setbacks -
Correct Answers -Bulk zoning
A manufactured home can be turned into real estate by what process - Correct Answers -
AFFIXATION
A developer grants a local power company the right to install necessary transmission lines. This
right is an example of a - Correct Answers -Easement in gross
The beneficiary of a land trust is also commonly - Correct Answers -The trustor
