LAW OF CONTRACTS EXAM

A sale and leaseback agreement is: - Answer- a way for landowners to free up capital while maintaining the same overhead expenses With net leases, each added "net" requires a tenant to pay for an additional expense that may have otherwise fallen on the landlord. All of the following are expenses that could be paid under a net lease EXCEPT: - Answer- debt interest (Any lease that requires a tenant to pay rent, property taxes, insurance, and maintenance expenses is a triple-net lease.) What allows the courts to identify a property with reasonable certainty? - Answer- The legal property description from the deed A promissory note is: - Answer- the borrower's personal promise to repay the loan to the lender Who is responsible for writing commission checks to the brokers? - Answer- Title Company During a contract for deed: - Answer- The seller hold the legal title to the property and the buyer is entitled to possession and equitable title to the property An orange tree (which is not moveable and is something growing on the land in question) would be considered: - Answer- real property Real Property is the land plus improvements on the land (including what's growing on the land). Real estate loans are bought and sold on the: - Answer- secondary mortgage market What is an executed contract? - Answer- a contract in which all terms have been fulfilled by all parties Aviv and Gregory are friends who are also parties to a real estate sale. They agree over a sale price verbally because they trust each other. As per the Statute of Frauds, which of the following is TRUE regarding the enforceability of their contract? - Answer- For their contract to be enforceable, it must be in writing AND signed by the party being charged. Contracts must be in writing and signed by the party to be charged to be enforceable. Jasper and Aziz are engaging a real estate transaction. They want to make sure the interest being conveyed is officially and accurately recorded. What would they use to do that? - Answer- one of the sales contracts promulgated by TREC The six TREC-promulgated sales contracts describe the conveyance that the buyer and seller are agreeing upon. According to the TREC contracts, the title company (on behalf of the seller) will send what to the buyer within 20 days after they receive the signed contract? - Answer- Commitment for title insurance Which of the following about the unauthorized practice of law and real estate contracts is TRUE? - Answer- license holders are able to complete (fill in the blanks of) real estate contracts promulgated by TREC but should NOT create their own contracts If the buyer wants to make the contract contingent upon their ability to have environment