PROMULGATED CONTRACT FORM EXAM /
QUESTIONS AND CORRECT ANSWERS 2024/2025
GRADED A+.
If a Buyer wants the Seller to pay some or all of their closing costs, it should be
added to the contract in:
A) Paragraph #11 (Special Provisions)
B) Paragraph #12 - Seller participation in the Buyer's costs
C) Third Part financing Addendum
D) All of the above - (answers)B) Paragraph #12- Seller participation in the
Buyer's costs
If a Buyer chooses not to be represented by an agent, the Buyer must be made
aware that any information they share can be communicated to the Seller.
A) True
B) False - (answers)A) True
The sales price is determined in paragraph 3 by adding the down payment (3A)
and the loan amount (3B).
A) True
B) False - (answers)A) True
,The Seller contracts to furnish the buyer an existing survey, but neglects to furnish
an "affidavit' with the time specified. The lender requests a new survey be
furnished. Who pays for the new survey?
A) Whoever is stated in the contract if the existing survey is rejected
B) The title company can approve the existing survey and override the lender
C) The buyer
D) The seller - (answers)D) The seller
The Third Party Financing Condition Addendum is not used with:
A) Conventional financing
B) Seller financing
C) FHA Financing
D) VA Financing - (answers)B) Seller financing
On the Seller's default, what should happen to the earnest money?
A) It belongs to the Broker
B) It should be returned to the Buyer
C) It should be retained by the Seller
D) The title company should keep it - (answers)B) It should be returned to the
Buyer
, If the contract includes an option period for the buyer and the buyer does not
tender the option fee to the Seller within the time limit (currently with 3 days
from effective date of the contract) the Buyer no longer has an unrestricted right
to terminate under the option.
A) True
B) False - (answers)A) True
Fraud is:
A) A crime
B) A civil law violation
C) Both a & b
D) Only b - (answers)C) Both a & b
When a "fixture" in a property does not remain for the buyer, how do we inform
the buyer of that fact and make sure the item does not convey with the property?
A) List the item as not included in the listing Agreement
B) List the item on the "Seller's Disclosure Notice"
C) List the item on the "Residential Contract"
D) List the item on the "Amendment" form - (answers)C) List the item on the
"Residential Contract"
QUESTIONS AND CORRECT ANSWERS 2024/2025
GRADED A+.
If a Buyer wants the Seller to pay some or all of their closing costs, it should be
added to the contract in:
A) Paragraph #11 (Special Provisions)
B) Paragraph #12 - Seller participation in the Buyer's costs
C) Third Part financing Addendum
D) All of the above - (answers)B) Paragraph #12- Seller participation in the
Buyer's costs
If a Buyer chooses not to be represented by an agent, the Buyer must be made
aware that any information they share can be communicated to the Seller.
A) True
B) False - (answers)A) True
The sales price is determined in paragraph 3 by adding the down payment (3A)
and the loan amount (3B).
A) True
B) False - (answers)A) True
,The Seller contracts to furnish the buyer an existing survey, but neglects to furnish
an "affidavit' with the time specified. The lender requests a new survey be
furnished. Who pays for the new survey?
A) Whoever is stated in the contract if the existing survey is rejected
B) The title company can approve the existing survey and override the lender
C) The buyer
D) The seller - (answers)D) The seller
The Third Party Financing Condition Addendum is not used with:
A) Conventional financing
B) Seller financing
C) FHA Financing
D) VA Financing - (answers)B) Seller financing
On the Seller's default, what should happen to the earnest money?
A) It belongs to the Broker
B) It should be returned to the Buyer
C) It should be retained by the Seller
D) The title company should keep it - (answers)B) It should be returned to the
Buyer
, If the contract includes an option period for the buyer and the buyer does not
tender the option fee to the Seller within the time limit (currently with 3 days
from effective date of the contract) the Buyer no longer has an unrestricted right
to terminate under the option.
A) True
B) False - (answers)A) True
Fraud is:
A) A crime
B) A civil law violation
C) Both a & b
D) Only b - (answers)C) Both a & b
When a "fixture" in a property does not remain for the buyer, how do we inform
the buyer of that fact and make sure the item does not convey with the property?
A) List the item as not included in the listing Agreement
B) List the item on the "Seller's Disclosure Notice"
C) List the item on the "Residential Contract"
D) List the item on the "Amendment" form - (answers)C) List the item on the
"Residential Contract"
