Post Licensing 302
Are commission split agreements always
negotiated separately from the OTP? - ANSyes
Can commission split agreements be
included on OTP? - ANSno
Brokers are allowed to fill in the blanks of
sales contracts provided by: - ANSthe Association of Realtors or an attorney
Brokers shall not include provisions: - ANSconcerning the payment of commission or
compensation
that attempt to disclaim liability of broker
When is the standard form 2-T Offer to Purchase and
Contract mostly used? - ANSresidential resales including condo and town homes but not vacant
land
Separate OTP contracts available for: - ANSvacant land/lot
new construction
What should a broker do if a buyer is requesting language and specific provisions not on the
form, and not covered by the addenda? - ANSrefer the buyer to an attorney to draft a contract
that fits their specific needs
If the property description is too vague could it render a contract voidable? - ANSyes
Is an earnest money deposit required? - ANSnot required but it demonstrates the buyers
intentions to carry out the contract
How does earnest money appear on
closing statement? - ANScredit buyer (seller does not receive until closing
therefore no seller debit)
When does the effective date occur? - ANSoccurs when all parties have signed and
contract has been communicated
How do DDFs appear on the closing statement? - ANScredit buyer/debit seller (since the seller
has already been paid for it)
, Settlement may be delayed up to ______ without having to
obtain further permission from seller - ANS7 days
Are special assessments prorated? - ANSno
Do fixtures listed on OTP trumps anything listed
in the listing agreement or MLS? - ANSyes - no list, no take
What options would a buyer have if they discover a utility easement after due diligence expires?
- ANSbuyer would have to accept the easement with the contract or face legal consequences
Providing there is no "time is of the essence" what rule applies as long as either party is not
intentionally delaying the process? - ANSthe 7 day rule
It's written into the contract that a _________ exists unless "time is of the
essence" or a party is not acting in good faith. - ANS7 day window
What does it mean to assign a contract? - ANSto transfer the rights and responsibilities of the
contract to another party
Parol Evidence Rule states that the ______ counts and nothing else - ANScontract
How many original contracts must be signed by all parties? - ANSone
What is required to create a legally enforceable contract? - ANSan original contract signed by all
parties
What are two ways to terminate an original offer? - ANSCounter offer or Response to Buyers
Offer
form
Can the offer or counteroffer be revoked by the offeror at
any time, regardless of the deadline listed on the offer? - ANSyes
When must all offers be communicated? - ANSimmediately
Can you show preference to in-house offers? - ANSno
To be enforceable, contracts for the purchase and sale of real estate would need all of the
following EXCEPT
A) mentally capable parties that understand the terms of the contract
B) earnest money deposit must accompany the contract.
Are commission split agreements always
negotiated separately from the OTP? - ANSyes
Can commission split agreements be
included on OTP? - ANSno
Brokers are allowed to fill in the blanks of
sales contracts provided by: - ANSthe Association of Realtors or an attorney
Brokers shall not include provisions: - ANSconcerning the payment of commission or
compensation
that attempt to disclaim liability of broker
When is the standard form 2-T Offer to Purchase and
Contract mostly used? - ANSresidential resales including condo and town homes but not vacant
land
Separate OTP contracts available for: - ANSvacant land/lot
new construction
What should a broker do if a buyer is requesting language and specific provisions not on the
form, and not covered by the addenda? - ANSrefer the buyer to an attorney to draft a contract
that fits their specific needs
If the property description is too vague could it render a contract voidable? - ANSyes
Is an earnest money deposit required? - ANSnot required but it demonstrates the buyers
intentions to carry out the contract
How does earnest money appear on
closing statement? - ANScredit buyer (seller does not receive until closing
therefore no seller debit)
When does the effective date occur? - ANSoccurs when all parties have signed and
contract has been communicated
How do DDFs appear on the closing statement? - ANScredit buyer/debit seller (since the seller
has already been paid for it)
, Settlement may be delayed up to ______ without having to
obtain further permission from seller - ANS7 days
Are special assessments prorated? - ANSno
Do fixtures listed on OTP trumps anything listed
in the listing agreement or MLS? - ANSyes - no list, no take
What options would a buyer have if they discover a utility easement after due diligence expires?
- ANSbuyer would have to accept the easement with the contract or face legal consequences
Providing there is no "time is of the essence" what rule applies as long as either party is not
intentionally delaying the process? - ANSthe 7 day rule
It's written into the contract that a _________ exists unless "time is of the
essence" or a party is not acting in good faith. - ANS7 day window
What does it mean to assign a contract? - ANSto transfer the rights and responsibilities of the
contract to another party
Parol Evidence Rule states that the ______ counts and nothing else - ANScontract
How many original contracts must be signed by all parties? - ANSone
What is required to create a legally enforceable contract? - ANSan original contract signed by all
parties
What are two ways to terminate an original offer? - ANSCounter offer or Response to Buyers
Offer
form
Can the offer or counteroffer be revoked by the offeror at
any time, regardless of the deadline listed on the offer? - ANSyes
When must all offers be communicated? - ANSimmediately
Can you show preference to in-house offers? - ANSno
To be enforceable, contracts for the purchase and sale of real estate would need all of the
following EXCEPT
A) mentally capable parties that understand the terms of the contract
B) earnest money deposit must accompany the contract.
