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Perry real estate final exam Questions with
Detailed Verified Answers
Q: If I am makes an offer on a house and the seller excepts in
writing. What is the current status of this relationship?
Ans: Because the seller has promised to sell and the buyer has
promised to buy, it is clearly a bilateral contract. It is express because
they announced their intentions in writing. This contract is executory
because the sale has not closed yet
Q: Additional conditions that must be satisfied before a sales
contract is fully enforceable are called
Ans: contingencies
Q: If I'm in allows a woman to back out of the contract, returned
the earnest money to her, and both are back to the positions they
held before the contract, the contract has been
Ans: Rescission allows both parties to return to their original
possessions before the contract, so any monies exchange must be
returned
Q: A buyer makes an offer to buy a sellers house. Pursuant it to
this offer, the buyer is obligated to perform only if the buyer is first
able to sell her condo. This is an example of
Ans: A property sale contingency protects a buyer who has to sell a
property in order to buy the sellers property
Q: On March 7 a buyer and a seller execute a contract for the
purchase of the sellers property. Closing is set for June 10. On April
15 the property is struck by lightning and destroyed by the resulting
fire. If the uniform vendor and purchase or risk act has been
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adopted by the state in which the property is located, which party
bears liability for the loss?
Ans: In states that have adopted the uniform vendor and purchaser
act, the seller remains responsible for the property until the day of
closing
Q: The term statue of limitation is best described as the limitation
on the
Ans: Every state limits the right during which parties to a contract may
bring a legal action to enforce their rights. Rights not enforced within
the Applicable time period Are lost
Q: In case the buyer decides not to buy for no legal reason, the
contract may provide at the earnest money is there as
Ans: Liquidated damages limit the compensation available to the
injured party should a breach of contract occur
Q: What is minimum consideration in a valid contract
Ans: Anything the parties agree is good and valuable
Q: What is an example of a unilateral contract
Ans: In a unilateral contract only one party is obligated to perform.
The optionor-owner of the property must sell at the agreed-upon price
only if the optionee he decides to buy
Q: A woman is buying a man's house and wants to take over the
mortgage. The lender releases the man from the obligation
substituting the woman as the party liable for the debt. This new
agreement is called
Ans: Novation
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Q: A real estate broker in ounces to the sales people in her office
that she will pay $1000 bonus to the top selling sales person each
quarter. This contract is an
Ans: The offer of a bonus to the top selling sales person each quarter
is an express contract because the broker clearly stated her intentions
and words to the sales people. It is unilateral contract because she's
obligated to keep her promise but the sales people are not obligated
to perform
Q: A testamentary trust is created by
Ans: A will
Q: In any Township what is the number of the section designated
as the school section
Ans: 16
Q: Lonnie conveys the ownership of his house to his mother and
stipulates that upon her death he will recapture ownership. The
interest Lonnie has in the property is a
Ans: reversionary interest
Q: If a creator of a life estate chooses not to name my
remainderman the creator has
Ans: The property will revert back to the creator
Q: A descendent left a will giving his neighbor the right to use a
well on the descendents land as long as the neighbor lived. The
neighbors interest in the property is properly called
Ans: An easement in gross is an individual interest in someone else's
land
Q: A lawsuit to terminate an easement is called an action to
Perry real estate final exam Questions with
Detailed Verified Answers
Q: If I am makes an offer on a house and the seller excepts in
writing. What is the current status of this relationship?
Ans: Because the seller has promised to sell and the buyer has
promised to buy, it is clearly a bilateral contract. It is express because
they announced their intentions in writing. This contract is executory
because the sale has not closed yet
Q: Additional conditions that must be satisfied before a sales
contract is fully enforceable are called
Ans: contingencies
Q: If I'm in allows a woman to back out of the contract, returned
the earnest money to her, and both are back to the positions they
held before the contract, the contract has been
Ans: Rescission allows both parties to return to their original
possessions before the contract, so any monies exchange must be
returned
Q: A buyer makes an offer to buy a sellers house. Pursuant it to
this offer, the buyer is obligated to perform only if the buyer is first
able to sell her condo. This is an example of
Ans: A property sale contingency protects a buyer who has to sell a
property in order to buy the sellers property
Q: On March 7 a buyer and a seller execute a contract for the
purchase of the sellers property. Closing is set for June 10. On April
15 the property is struck by lightning and destroyed by the resulting
fire. If the uniform vendor and purchase or risk act has been
, Page | 2
adopted by the state in which the property is located, which party
bears liability for the loss?
Ans: In states that have adopted the uniform vendor and purchaser
act, the seller remains responsible for the property until the day of
closing
Q: The term statue of limitation is best described as the limitation
on the
Ans: Every state limits the right during which parties to a contract may
bring a legal action to enforce their rights. Rights not enforced within
the Applicable time period Are lost
Q: In case the buyer decides not to buy for no legal reason, the
contract may provide at the earnest money is there as
Ans: Liquidated damages limit the compensation available to the
injured party should a breach of contract occur
Q: What is minimum consideration in a valid contract
Ans: Anything the parties agree is good and valuable
Q: What is an example of a unilateral contract
Ans: In a unilateral contract only one party is obligated to perform.
The optionor-owner of the property must sell at the agreed-upon price
only if the optionee he decides to buy
Q: A woman is buying a man's house and wants to take over the
mortgage. The lender releases the man from the obligation
substituting the woman as the party liable for the debt. This new
agreement is called
Ans: Novation
, Page | 3
Q: A real estate broker in ounces to the sales people in her office
that she will pay $1000 bonus to the top selling sales person each
quarter. This contract is an
Ans: The offer of a bonus to the top selling sales person each quarter
is an express contract because the broker clearly stated her intentions
and words to the sales people. It is unilateral contract because she's
obligated to keep her promise but the sales people are not obligated
to perform
Q: A testamentary trust is created by
Ans: A will
Q: In any Township what is the number of the section designated
as the school section
Ans: 16
Q: Lonnie conveys the ownership of his house to his mother and
stipulates that upon her death he will recapture ownership. The
interest Lonnie has in the property is a
Ans: reversionary interest
Q: If a creator of a life estate chooses not to name my
remainderman the creator has
Ans: The property will revert back to the creator
Q: A descendent left a will giving his neighbor the right to use a
well on the descendents land as long as the neighbor lived. The
neighbors interest in the property is properly called
Ans: An easement in gross is an individual interest in someone else's
land
Q: A lawsuit to terminate an easement is called an action to
