Legal aspects of Real estate chapter 8
UPDATED ACTUAL Exam Questions and
CORRECT Answers
What paragraph in a CAR Residential Purchase Agreement has five sections that outline the joint
instructions of the buyer and seller to the escrow holder and defines the roles of the parties in the
transaction?
Joint Escrow Instructions to Escrow Holder
Prorations of Property Taxes and Other Items
Brokers
Representative Capacity - CORRECT ANSWER - Joint Escrow Instructions to Escrow
Holder
What paragraph in a CAR Residential Purchase Agreement states the contract represents the
final terms of the agreement unless the parties make changes in writing?
Assignment
Selection of Service Providers
Time of Essence; Entire Contract; Changes
Expiration of Offer - CORRECT ANSWER - Time of Essence; Entire Contract; Changes
What clause talks about how a landlord is leasing a property and a tenant is taking possession of
a property?
A possession clause
A leasehold clause
A demising clause
A regulation clause - CORRECT ANSWER - A demising clause
What provision in a sales contract is the seller's written summary of the property's condition at
the time of contracting for sale?
Seller's representations
, Right of rescission
Residential property condition disclosure
Broker's representation and commission - CORRECT ANSWER - Residential property
condition disclosure
What type of contingency can be put in place when a buyer has already accepted an offer on their
current home, but has not closed?
A kick-out clause
A settlement contingency
A financing contingency
A sale and settlement contingency - CORRECT ANSWER - A settlement contingency
What governs the making, interpretation, and enforcement of leases?
The Residential Tenant Act
Landlord Tenant Law
The Law of Possession
The Law of Contracts - CORRECT ANSWER - The Law of Contracts
Under Acceptance of Offer in a CAR Residential Purchase Agreement, which section states that
brokers are not parties to the agreement?
Escrow Holder Acknowledgement
Presentation of Offer
Non-participating Parties
Real Estate Brokers - CORRECT ANSWER - Real Estate Brokers
What type of contingency protects the buyer by ensuring that the property is valued at a price
that is close to what is being offered by the buyer?
A financing contingency
An appraisal contingency
UPDATED ACTUAL Exam Questions and
CORRECT Answers
What paragraph in a CAR Residential Purchase Agreement has five sections that outline the joint
instructions of the buyer and seller to the escrow holder and defines the roles of the parties in the
transaction?
Joint Escrow Instructions to Escrow Holder
Prorations of Property Taxes and Other Items
Brokers
Representative Capacity - CORRECT ANSWER - Joint Escrow Instructions to Escrow
Holder
What paragraph in a CAR Residential Purchase Agreement states the contract represents the
final terms of the agreement unless the parties make changes in writing?
Assignment
Selection of Service Providers
Time of Essence; Entire Contract; Changes
Expiration of Offer - CORRECT ANSWER - Time of Essence; Entire Contract; Changes
What clause talks about how a landlord is leasing a property and a tenant is taking possession of
a property?
A possession clause
A leasehold clause
A demising clause
A regulation clause - CORRECT ANSWER - A demising clause
What provision in a sales contract is the seller's written summary of the property's condition at
the time of contracting for sale?
Seller's representations
, Right of rescission
Residential property condition disclosure
Broker's representation and commission - CORRECT ANSWER - Residential property
condition disclosure
What type of contingency can be put in place when a buyer has already accepted an offer on their
current home, but has not closed?
A kick-out clause
A settlement contingency
A financing contingency
A sale and settlement contingency - CORRECT ANSWER - A settlement contingency
What governs the making, interpretation, and enforcement of leases?
The Residential Tenant Act
Landlord Tenant Law
The Law of Possession
The Law of Contracts - CORRECT ANSWER - The Law of Contracts
Under Acceptance of Offer in a CAR Residential Purchase Agreement, which section states that
brokers are not parties to the agreement?
Escrow Holder Acknowledgement
Presentation of Offer
Non-participating Parties
Real Estate Brokers - CORRECT ANSWER - Real Estate Brokers
What type of contingency protects the buyer by ensuring that the property is valued at a price
that is close to what is being offered by the buyer?
A financing contingency
An appraisal contingency
