Chapter 9: Purchase and Sale
Agreements (Colibri Real Estate) Exam
2025 With 100% Correct Answers
Maria offered to purchase Alexander's house for $135,000. After talking it over with his agent,
Alexander signed the offer and returned it to Maria. At this point, what type of title does Maria
have to the house?
Legal
Indivisible
Equitable
Chattel - correct answers ✔✔Equitable
A buyer receives equitable title to the property once the sales contract has been signed.
Siobhan listed her property with ABC Realty. She asks her agent, Robert, to draft deed
covenants that will prevent a buyer from subdividing the land in the future. She'd also like the
agent to create a trust from the sale, to benefit her disabled sister. Robert's reply should be:
I can draft the trust, but an attorney will need to draft the covenants
I can draft both of these documents
I can draft the covenants, but an attorney will need to draft the trust
,I can't help you with either of these things; you'll need to contact an attorney - correct answers
✔✔I can't help you with either of these things; you'll need to contact an attorney
A real estate licensee is limited to filling in the blanks on a printed form drafted by attorneys.
Going beyond that, by drafting covenants or trust documents, for example, would be considered
the unauthorized practice of law.
A real estate firm handles property management for a number of property owners. Rather than
use one standard form, though, each lease must be separately drafted, based on individual
negotiations. Which of the following statements is true?
A lease agreement can be prepared by anyone
An attorney must be engaged to draft each contract
Any licensed real estate agent can draft these leases
A real estate firm can draft the leases if both parties agree in writing - correct answers ✔✔An
attorney must be engaged to draft each contract
Only an attorney may draft a contract for someone else; for a real estate agent to do so would
be the unauthorized practice of law. The agent may fill out pre-printed forms, but not draft new
contract language.
Purchase and sale agreements typically contain many clauses. All of the following would likely
be included in the contract EXCEPT:
the type of listing contract used by the parties, and the date it expires
,the name of the buyer
a description of the property
the identity of the seller - correct answers ✔✔the type of listing contract used by the parties,
and the date it expires
The type of listing agreement used by the seller and his agent is never included in the purchase
and sale agreement; it has no bearing on the agreement between the buyer and the seller.
The buyers and the sellers entered into the purchase and sale agreement. The sellers were
moving out of state and vacated the property well before the closing date. On the day before
closing, the buyers and their real estate agent arrived at the property for a final inspection.
When they entered the home, they realized that a pipe had burst and the house had flooded.
There was water in the basement, the basement floor and walls were ruined, and the entire
house smelled of mold. Are the buyers required to go through with the purchase?
Yes, because the parties will not be able to agree on who gets the earnest money deposit
Yes, as long as the agent agrees to return the earnest money deposit to the buyers to
compensate them for the damages.
No, because the buyers are entitled to receive the property in the same condition it was in on
the day the sales agreement was executed
No, because the mold problem is a health h - correct answers ✔✔No, because the buyers are
entitled to receive the property in the same condition it was in on the day the sales agreement
was executed
, Buyers are always entitled to receive the property in the same condition it was in when the
sales agreement was signed.
A buyer and a seller enter into a purchase and sale agreement. The agreement provides that
closing must take place by September 30. A clause states that a party's failure to be ready to
perform by a date specified in the contract will constitute a breach of the contract. What is the
name of this clause?
Habendum clause
Contingency clause
Time is of the essence clause
Closing clause - correct answers ✔✔Time is of the essence clause
A contract clause that makes failure to meet a stated deadline a material breach of the contract
is called a "time is of the essence" clause.
A contract specifies that "time is of the essence." This means that:
the seller must fulfill her contractual duties by the date set forth in the contract, but the buyer
does not have to
the buyer must fulfill her contractual duties by the date set forth in the contract, but the seller
does not have to
the agent must fulfill his contractual duties by the date set forth in the contract, but the buyer
and seller do not have to
Agreements (Colibri Real Estate) Exam
2025 With 100% Correct Answers
Maria offered to purchase Alexander's house for $135,000. After talking it over with his agent,
Alexander signed the offer and returned it to Maria. At this point, what type of title does Maria
have to the house?
Legal
Indivisible
Equitable
Chattel - correct answers ✔✔Equitable
A buyer receives equitable title to the property once the sales contract has been signed.
Siobhan listed her property with ABC Realty. She asks her agent, Robert, to draft deed
covenants that will prevent a buyer from subdividing the land in the future. She'd also like the
agent to create a trust from the sale, to benefit her disabled sister. Robert's reply should be:
I can draft the trust, but an attorney will need to draft the covenants
I can draft both of these documents
I can draft the covenants, but an attorney will need to draft the trust
,I can't help you with either of these things; you'll need to contact an attorney - correct answers
✔✔I can't help you with either of these things; you'll need to contact an attorney
A real estate licensee is limited to filling in the blanks on a printed form drafted by attorneys.
Going beyond that, by drafting covenants or trust documents, for example, would be considered
the unauthorized practice of law.
A real estate firm handles property management for a number of property owners. Rather than
use one standard form, though, each lease must be separately drafted, based on individual
negotiations. Which of the following statements is true?
A lease agreement can be prepared by anyone
An attorney must be engaged to draft each contract
Any licensed real estate agent can draft these leases
A real estate firm can draft the leases if both parties agree in writing - correct answers ✔✔An
attorney must be engaged to draft each contract
Only an attorney may draft a contract for someone else; for a real estate agent to do so would
be the unauthorized practice of law. The agent may fill out pre-printed forms, but not draft new
contract language.
Purchase and sale agreements typically contain many clauses. All of the following would likely
be included in the contract EXCEPT:
the type of listing contract used by the parties, and the date it expires
,the name of the buyer
a description of the property
the identity of the seller - correct answers ✔✔the type of listing contract used by the parties,
and the date it expires
The type of listing agreement used by the seller and his agent is never included in the purchase
and sale agreement; it has no bearing on the agreement between the buyer and the seller.
The buyers and the sellers entered into the purchase and sale agreement. The sellers were
moving out of state and vacated the property well before the closing date. On the day before
closing, the buyers and their real estate agent arrived at the property for a final inspection.
When they entered the home, they realized that a pipe had burst and the house had flooded.
There was water in the basement, the basement floor and walls were ruined, and the entire
house smelled of mold. Are the buyers required to go through with the purchase?
Yes, because the parties will not be able to agree on who gets the earnest money deposit
Yes, as long as the agent agrees to return the earnest money deposit to the buyers to
compensate them for the damages.
No, because the buyers are entitled to receive the property in the same condition it was in on
the day the sales agreement was executed
No, because the mold problem is a health h - correct answers ✔✔No, because the buyers are
entitled to receive the property in the same condition it was in on the day the sales agreement
was executed
, Buyers are always entitled to receive the property in the same condition it was in when the
sales agreement was signed.
A buyer and a seller enter into a purchase and sale agreement. The agreement provides that
closing must take place by September 30. A clause states that a party's failure to be ready to
perform by a date specified in the contract will constitute a breach of the contract. What is the
name of this clause?
Habendum clause
Contingency clause
Time is of the essence clause
Closing clause - correct answers ✔✔Time is of the essence clause
A contract clause that makes failure to meet a stated deadline a material breach of the contract
is called a "time is of the essence" clause.
A contract specifies that "time is of the essence." This means that:
the seller must fulfill her contractual duties by the date set forth in the contract, but the buyer
does not have to
the buyer must fulfill her contractual duties by the date set forth in the contract, but the seller
does not have to
the agent must fulfill his contractual duties by the date set forth in the contract, but the buyer
and seller do not have to
