PROMULGATED CONTRACT FORMS EXAM
QUESTIONS AND ANSWERS LATEST
1. 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: B) Paragraph #12- Seller participation in the Buyer's costs
2. 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: A) True
3. The sales price is determined in paragraph 3 by adding the down payment
(3A) and the loan amount (3B).
A) True
B) False: A) True
4. 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: D) The seller
5. The Third Party Financing Condition Addendum is not used with:
A) Conventional financing
B) Seller financing
C) FHA Financing
D) VA Financing: B) Seller financing
, 6. 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: B) It should be returned to the Buyer
7. 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
QUESTIONS AND ANSWERS LATEST
1. 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: B) Paragraph #12- Seller participation in the Buyer's costs
2. 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: A) True
3. The sales price is determined in paragraph 3 by adding the down payment
(3A) and the loan amount (3B).
A) True
B) False: A) True
4. 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: D) The seller
5. The Third Party Financing Condition Addendum is not used with:
A) Conventional financing
B) Seller financing
C) FHA Financing
D) VA Financing: B) Seller financing
, 6. 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: B) It should be returned to the Buyer
7. 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
