1
Real Estate Transfer of Property| CA
Exam Questions and Answers|3 hrs. 15
Minutes| Multiple choices
Explain the rationale behind why a transfer of property requires a written deed rather than just a
verbal agreement.
A) Verbal agreements are legally binding
B) A deed serves as a public record and proof of ownership
C) Deeds can be modified anytime after transfer
D) Property transfers do not require any documentation
Evaluate the implications if a seller fails to disclose a known material defect in the property
during a sales agreement.
A) The buyer can sue for fraud or rescind the contract
B) The seller can claim ignorance of the defect
C) The defect is irrelevant if the buyer waives inspection
D) The contract automatically terminates
Identify the underlying cause that makes a quitclaim deed less secure than a grant deed for the
buyer.
A) It guarantees clear title
B) It transfers whatever interest the seller has, without warranties
, 2
C) It is only valid for commercial properties
D) It requires notarization
Propose a solution when a buyer discovers after closing that the property has undisclosed
easements affecting its use.
A) Ignore the easements since the sale is final
B) Negotiate with the seller for compensation or legal action
C) Demand immediate eviction of easement holders
D) Cancel the loan agreement
Analyze the factors contributing to the enforceability of an oral agreement in real estate.
A) Oral agreements are always enforceable
B) Statute of Frauds requires contracts for property to be written
C) Oral contracts have equal weight in court as written ones
D) Enforceability depends on notarization
Explain the rationale behind why escrow is used in property transfers.
A) To delay the transaction
B) To protect both buyer and seller by holding funds and documents until conditions are met
C) To avoid paying taxes
D) To allow the seller to keep possession after closing
, 3
Evaluate the implications if a contract includes a contingency clause that the buyer fails to meet.
A) The contract remains binding regardless
B) The contract is void or can be canceled without penalty
C) The seller must extend the contingency
D) The buyer automatically loses the deposit
Identify the cause that leads to a voidable contract in real estate agreements.
A) Mutual consent of both parties
B) Fraud, duress, or misrepresentation
C) Signed and notarized documents
D) Recording the deed
Propose a solution if a buyer wants to back out of the contract due to financing issues.
A) Forfeit the deposit without negotiation
B) Request a contingency release or contract termination
C) Sue the seller for damages
D) Close without financing
Analyze the factors affecting the marketability of a title in property transfer.
A) Presence of liens or encumbrances
B) Age of the property
C) Location of the property
D) Type of deed
, 4
Explain the rationale behind the requirement of legal description in a deed.
A) It is optional
B) It precisely identifies the property boundaries for transfer
C) It can be replaced with a street address
D) It describes the buyer’s obligations
Evaluate the implications of a bilateral vs unilateral contract in a real estate transaction.
A) Bilateral contracts involve promises from both parties
B) Unilateral contracts have no legal effect
C) Bilateral contracts don’t require signatures
D) Unilateral contracts are always void
Identify the underlying cause for the need of consideration in a valid contract.
A) It makes the contract a gift
B) It ensures both parties exchange something of value
C) It is not necessary in property deals
D) It refers to contract length
Propose a solution to resolve a dispute when both parties claim the earnest money deposit.
A) Give the deposit to the seller automatically
B) Use escrow instructions or court intervention to determine rightful ownership
C) Return the deposit to the buyer
D) Cancel the sale
Analyze the factors contributing to termination of a purchase agreement.
A) Performance of all contract terms
Real Estate Transfer of Property| CA
Exam Questions and Answers|3 hrs. 15
Minutes| Multiple choices
Explain the rationale behind why a transfer of property requires a written deed rather than just a
verbal agreement.
A) Verbal agreements are legally binding
B) A deed serves as a public record and proof of ownership
C) Deeds can be modified anytime after transfer
D) Property transfers do not require any documentation
Evaluate the implications if a seller fails to disclose a known material defect in the property
during a sales agreement.
A) The buyer can sue for fraud or rescind the contract
B) The seller can claim ignorance of the defect
C) The defect is irrelevant if the buyer waives inspection
D) The contract automatically terminates
Identify the underlying cause that makes a quitclaim deed less secure than a grant deed for the
buyer.
A) It guarantees clear title
B) It transfers whatever interest the seller has, without warranties
, 2
C) It is only valid for commercial properties
D) It requires notarization
Propose a solution when a buyer discovers after closing that the property has undisclosed
easements affecting its use.
A) Ignore the easements since the sale is final
B) Negotiate with the seller for compensation or legal action
C) Demand immediate eviction of easement holders
D) Cancel the loan agreement
Analyze the factors contributing to the enforceability of an oral agreement in real estate.
A) Oral agreements are always enforceable
B) Statute of Frauds requires contracts for property to be written
C) Oral contracts have equal weight in court as written ones
D) Enforceability depends on notarization
Explain the rationale behind why escrow is used in property transfers.
A) To delay the transaction
B) To protect both buyer and seller by holding funds and documents until conditions are met
C) To avoid paying taxes
D) To allow the seller to keep possession after closing
, 3
Evaluate the implications if a contract includes a contingency clause that the buyer fails to meet.
A) The contract remains binding regardless
B) The contract is void or can be canceled without penalty
C) The seller must extend the contingency
D) The buyer automatically loses the deposit
Identify the cause that leads to a voidable contract in real estate agreements.
A) Mutual consent of both parties
B) Fraud, duress, or misrepresentation
C) Signed and notarized documents
D) Recording the deed
Propose a solution if a buyer wants to back out of the contract due to financing issues.
A) Forfeit the deposit without negotiation
B) Request a contingency release or contract termination
C) Sue the seller for damages
D) Close without financing
Analyze the factors affecting the marketability of a title in property transfer.
A) Presence of liens or encumbrances
B) Age of the property
C) Location of the property
D) Type of deed
, 4
Explain the rationale behind the requirement of legal description in a deed.
A) It is optional
B) It precisely identifies the property boundaries for transfer
C) It can be replaced with a street address
D) It describes the buyer’s obligations
Evaluate the implications of a bilateral vs unilateral contract in a real estate transaction.
A) Bilateral contracts involve promises from both parties
B) Unilateral contracts have no legal effect
C) Bilateral contracts don’t require signatures
D) Unilateral contracts are always void
Identify the underlying cause for the need of consideration in a valid contract.
A) It makes the contract a gift
B) It ensures both parties exchange something of value
C) It is not necessary in property deals
D) It refers to contract length
Propose a solution to resolve a dispute when both parties claim the earnest money deposit.
A) Give the deposit to the seller automatically
B) Use escrow instructions or court intervention to determine rightful ownership
C) Return the deposit to the buyer
D) Cancel the sale
Analyze the factors contributing to termination of a purchase agreement.
A) Performance of all contract terms
