Explanation:
Before an offer has been accepted, the buyers have the right to withdraw their offer with no penalty.
However, if the seller has already accepted the offer, the offer now becomes a contract that carries
with it legal obligations.
Explanation:
This is very similar to another question in this section on the Statute of Frauds. A slight derivation on
another question will likely exist on the state exam.
Explanation:
The granting clause specifies what you really own when you own a piece of real estate.
Explanation:
While this is the correct answer, as a matter of prudent practice, an agent is to disclose the existence
of all offers to the seller, unless the seller explicitly instructs otherwise.
Explanation:
A delivery in escrow occurs when the grantor delivers the deed to a trustee or escrow agent. Once
the grantee completes their required actions, the trustee will release the deed to the grantee.
However, once the grantor gives the deed to the trustee, the title is considered legally transferred to
the grantee.
Explanation:
An open listing guarantees the entire commission to the procuring broker (Sam in this example).
Explanation:
This is an example of full disclosure. All of these conditions need to be met in order for the broker
to correctly exercise their option to purchase the property.
Explanation:
The reference to “equitable title" indicates this question is framed in the context of a land sales
contract in which the participants are the vendor (seller) and the vendee (buyer). In most cases, the
party name ending in “or” owns the real estate. The “ee” (vendee) is the buyer and therefore has
possession and equitable title of a property, but not legal title.
Explanation:
Each of the wrong answers can be seen as incorrect. An agent cannot obligate the seller to accept
an offer nor can they transfer property owned by the seller.
Explanation:
All of these terms relate to leases as they describe how rent is to be calculated and charged.
Explanation:
The owner shows through his actions that the contract is still valid, even though it is now simply
implied.
Explanation:
A court will likely grant commission to a real estate broker if he can prove he was the procuring
cause of sale, even if the listing has expired. Legally, this is referred to as a broker protection clause.
Explanation:
This question illustrates the need to be familiar with real estate terminology. Under a novation, there
is a substitution or exchange of a new obligation or contract for an old one by the mutual agreement
of the parties. Refer to the Real estate glossary at the back of this book for definitions to critical real
estate terms you are likely to encounter on the state exam.
Explanation:
All listings should have a fixed expiration date, and this period is negotiable as no laws regulate this
aspect of sale. However, most contracts are 60-120 days for a single family home and 6 months— 1
year for a commercial property.
Explanation:
Once the paperwork is signed for a sale or transfer, the real estate agents earn their pay.
Explanation:
This requires knowing who is who in the question. The offeror is the person who made the offer. The
offeree is the person who may accept or reject an offer.
Explanation:
To collect a commission, the broker needs to locate a buyer who is ready, willing and able to buy,
and they must prove they were the procuring cause of the sale.
Explanation:
When the grantor delivers and the grantee accepts the deed, the transfer of property becomes
official. This is also known as passing title.
Explanation:
The parties to an escrow do not include the broker. Thus, the damages described do not include the
broker’s fee nor would the broker have any authority to demand specific performance.
Explanation:
Exceptions and reservations are restrictions or limitations explicitly described in the deed.
Explanation:
In the instance of a land contract, also known as a contract sale, there is no trustee. Further, the
vendor already has legal title to the property so answer selection D would impact them (the seller)
rather than the vendee (the buyer). Thus, on a default by the buyer, the seller files a quiet title
action.
Explanation:
Had the buyer’s death occurred after communication of the acceptance of the offer by the seller’s
agent, her estate would have been responsible to complete the escrow.
Explanation:
In order of a contract of sale to be valid, there must be signatures from both parties.
Explanation:
When a counteroffer is made, no matter what the reason may be, the original offer is voided.
Explanation:
The property owner is responsible for determining a listing price for their property, although they are
often given market information by their real estate broker.
