CAL Real Estate Law Unit 6 Flashcards

CAL Real Estate Law Unit 6 Flashcards What is true about contingencies in purchase offers?The person benefiting by the contingency can waive it

On a contract, what takes precedence: typed

words/numbers or handwritten?Handwritten

An enforceable listing requires all EXCEPT: mutual

consent, legal purpose, competent parties, compensation agreement compensation agreement What happens to a broker's listings if the broker dies?They all cancel Which provision would LEAST likely be found in a real estate purchase contract? Safety clause, occupancy intentions, financing contingency or provision for physical inspection?Safety clause (found in listing) A listing broker refuses to split a commission with a cooperating broker after agreeing orally to do so. The cooperating broker would likely start legal action against the other broker The safety clause in a listing protects an agent as toa sale after listing expires An interim occupancy agreement is the same as whatconstruction loan An exclusive listing is a bilateral contract becausethe principal agrees to pay a fee and the agent agrees to use due diligence.A brokers promise to use diligence makes a listinga bilateral contract The exclusive listing that broker Joes had on the Adams farm expired at noon. At 1 pm, Adams gave broker Riley an

exclusive listing. at 2:30 pm, broker Jones procured a

buyer at the price and terms of the listing. Who is legally entitled to the commission?Broker Riley To collect a commission for a sale on an exclusive right to sell listing, the broker won't have to prove that they are what?procuring cause "as is" would most likely protect a seller from hidden debts when the sale is of a commercial property

An oral agreement most likely to be enforceable would be:

option to purchase, agreement between brokers to split commission, open listing or real estate purchase contract?agreement between brokers to split commission A broker brought an offer to an owner. While the broker did not have a listing, the offer provided for a commission. The owner crossed out the provision for a commission above the signature block and signed the acceptance. Which is TRUE regarding the brokers right?There was no listing, so the broker would receive no commission A commission is ordinarily EARNED when a broker finds a ready willing and able buyer A real estate purchase offer fails to specify a time for acceptance. The offer can be accepted within a reasonable period of time

What listing does not have a termination date? Open An owners oral agreement to pay a real estate sales commission would be unenforceable The effect of a hold harmless clause is that it means the owner agrees to indemnify the agent for losses suffered because of the owner's failure to disclose or owner's incorrect disclosure An agent neglected to fill any commission amount in a listing. After a successful sale, the agent would be entitled to nothing A contract for sale of a residence stated "as is." What is true about this provision?It applies to visible conditions only If you fail to do something within the specified time and it benefits you, it is considered a lache A broker must retain copies of all transaction documents for how long?

• years

Brokers Safety Clauseallows broker to receive a commission if a buyer he introduced to the property buys within a defined period after the listing has expired A valid listing agreement must contain which stipulation?Specific reference to the subject matter of the listing If a residence was built before what year, they must be given a Lead Paint Disclosure booklet 1978 You have to do _____ within ____ days is an example of acontingency

On a contract, what takes precedence: typed

words/numbers or preprinted statements?typed words How many essential elements are their to a contract?4 A buyer's listing authorizes an agent to locate properties for buyers consideration An offer to purchase stated that it would remain open for 48 hours. What does this mean?This offer can be revoked by the offeror before the 48 hours without penalty.Procuring cause need not be shown foran exclusive authorization and right to sell listing.This is an employment contract with a principal Listing Agreement Option ListingListing with a provision that gives the listing sponsoring broker the right to purchase the listed property.