Contracts Exam 8 Flashcards

Contracts Exam 8 Flashcards "MEC" in the Contract to Buy/Sell Real Estate means:The date upon which both parties have signed the contract Under the liquidated damages clause, in the Contract To Buy and Sell Real Estate, if the buyer defaults the seller has what options?Retain earnest money The Residential Contract to Buy and Sell includes various provisions that call for notification to one of the parties about various events or objections. Which of the following is correct with regard to whom the notification must be delivered?Notice is considered delivered when received by either the party or the broker working with that party.As per the Assignability and Inurement clause in the

Contract to Buy/Sell Real Estate:

Checking the "Is Not" box means the contract is not assignable without the seller's prior written consent As per the Assignability and Inurement clause in the

Contract to Buy/Sell Real Estate:

Checking the "Is" box means the contract is assignable without the sellers prior written consent In the Colorado Contract to Buy & Sell encumbrances to be

paid by the seller:

Must be paid at or before closing The inclusions and exclusions section of the Residential form of the Contract to Buy and Sell calls for mandatory inclusion of a number of items. Which of the following are included only if checked?Leased security items The Colorado Contract to Buy & Sell includes a provision about lead based paint disclosure. According to this provision, if the building permit was issued prior to Jan 1,

1978:

The contract is void unless disclosure is signed by the seller, buyer and brokers prior to the parties signing the sales agreement According to the Contract to Buy and Sell, who pays for the appraisal?Negotiated between the buyer and seller The "Additional Provisions" section of the Contract to Buy

and Sell Real Estate may include:

Transaction specific items resulting from negotiations or instructions of the parties to the contract According to the approved Colorado Contract to Buy and Sell Real Estate, when may purchaser assign the contract to another purchaser?Only with the seller's approval if the "shall not be assignable" box in the clause is checked The purchase and sale contract stipulates how many discount points a loan will incur and who will pay them. The

Title Company uses this information to determine:

whether to debit the seller A Buyers right to a Specific Performance remedy in the event of a SELLER default in the Contract to Buy and Sell

Real Estate:

Is the default remedy and as such need not be selected Under the Commission-approved Contract to Buy and Sell, if the buyer diligently tried to get a loan, was unable to do so and notified the Seller of such before the Loan Objection Deadline had passed, what would happen to the earnest money deposit?The broker would release the money back to the buyer

In the Contract to Buy/Sell Real Estate (AKA the purchase contract), who is responsible for the cost of the appraisal?Negotiable If items listed in the Inclusions and Exclusions Section of of the Contract to Buy and Sell Real Estate are not a part of

the property, the broker should:

do nothing, if the listing item is not on the property as of the date of the contract, it is not included nor necessary to cross it out

Complete this Clause. Inspection Objection: Unless

otherwise provided in the Contract, Buyer acknowledges that Seller is conveying the Property to Buyer...in an "as is" condition, "where is" and "with all faults." What recourse do the buyers have if they determine that property they have contracted to purchase is within a special taxing district?They may terminate the contract by written notice to the seller Every potential purchaser in Colorado must be given a

copy of:

Every document they have signed The Colorado Contract to Buy & Sell states that "time is of

essence hereof". This statement means that:

Dates and deadlines will strictly be interpreted A Seller signs an offer prior to the acceptance time and date. Before the offer is returned to the Buyer, the Buyer

calls and withdraws the offer. This offer is:

Void and not binding as it was withdrawn before acceptance was communicated to the buyer An Exclusive Right to Buy and Sell contract may disclose which of the following in the Acknowledgments section?The broker is either a Buyers' Agent or a Transaction Broker or a Seller's Agent What is required in the event of a dispute between the parties relating to the Contract to Buy and Sell?The parties must mediate in good faith to seek a settlement for up to 30 days What is typically not negotiable in the Contract to Buy and Sell Real Estate Mediation fee

A Purchase and Sale Contract may be prepared by: Buyers or Sellers attorney

The mediator must be a:Neutral third party able to facilitate the process

In the section on Purchase Price and Terms in a Residential Contract to Buy and Sell, which of the following is true concerning the entry for cash at closing?IT does not include the buyers closing costs such as loan fees According to the Contract to Buy and Sell Real Estate

earnest money is held on behalf of:

Buyer and seller What is a mandatory recommendation in the Contract to Buy/Sell Real Estate?Use of legal and tax counsel We have an accepted buy and sell contract, the seller

breaches the contract; the buyer may:

Treat the contract as cancelledSue for specific performanceSue for damages According to the rules and regulations of the Colorado Real Estate Commission, a broker is REQUIRED to recommend

that:

the buyer have title review by legal counsel As per the Contract to Buy/Sell Real Estate Mediation shall terminate in the event the entire dispute is not resolved within how many days of written notice requesting mediation delivered by one party to the other at the party's last known address?30 In the Colorado Contract to Buy & Sell establishes a Loan Objection Deadline; if the buyer is getting a new loan. What

is the effect of the deadline?If the buyer cannot get a satisfactory loan by that date, the buyer may terminate the contract with written notice to the

seller A buyer has a signed Contract to Buy/Sell Real Estate to purchase a property for $200,000. Prior to close, $25,000 worth of damage occurred. May he/she terminate the agreement?Yes, When the damage exceeds 10% of the agreed upon purchase price The amount of the assumption fee is disclosed to the

buyer:

within the purchase and sale contract If a Seller is in default of the terms of the Contract to Buy &

Sell:

They buyer may cancel or sue for specific damages Which of the following is true when a broker signs the Broker Acknowledgments at the end of the Residential Contract to Buy and Sell?the broker acknowledges receipt of the earnest money Who gets a copy of the contract?Buyer, Seller, Broker