Tennessee Portion to Study Part 2 exam latest update with 100% correct answers

Adverse fact Is a physical or environmental problem with the property, or anything that would directly negatively affect its value, which must be disclosed if known Fraudulent Act Is intentional deception in such a way as to take advantage or harm another person Negligence Is when licensees should have known that incorrect statements were being relied upon as material fact Dual contracts Is two contracts from the same buyer on the same property. One of the offers is used to purchase the property while the other is used to finance the property. The purpose of this contract is to enable the buyer to obtain a larger loan than the true sale price or to enable the buyer to qualify for a loan that the buyer otherwise could not obtain. Thus, the lender is deceived Stigmatized property Is a property that the public has branded as undesirable because of various reason such as felony, haunted, sex offender or owner died of AIDS Title Theory states Legal title (minus possession) is given up by the buyer to the lender or someone appointed by the lender to hold title on the lenders behalf. Foreclosure in these states is non judicial Lien theory states The buyer received legal title at closing and retains is. Foreclosure in these states is judicial Once a seller accept a offer if another offer comes in before closing the Offer May be negotiated as a back up contract Licensees are required to give people copies of what they sign Immediately upon signing Should listing agents receive multiple offers they are presented to the seller in No particular order Real estate contracts must be in writing to be Enforceable Under littoral rights a property owners land ownership extends to the Average high water mark While the seller is considering an offer The licensee must present other offers that come in When a Tennessee licensee prepares a sales contract, the licensee is Not practicing law The Residential Property Condition Disclosure form is Not a TREC specific form Property that requires property condition disclosures include The sale of a residential one to four family residences The public has a right to use the water rivers and lakes as king as they do not obstruct the flow of the water or Contaminate it In order for a contract to be binding agreement there must be A meeting of the minds (acceptance) An example of an exemption to residential property contain disclosure is A divorce sale of interest from one spouse to the other