FREE REAL ESTATE AND STUDY GAMES ABOUT

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FREE REAL ESTATE AND STUDY GAMES ABOUT

PROMULGATED CONTRACT EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -44 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Counteroffer

Answer:

a contract proposal submitted in response to a previous offer, modifying the terms of the original offer; considered a rejection of the original offer

Question 2: Restrictive Covenant

Answer:

a type of encumbrance that restricts how a buyer could use the property they are buying

Question 3: Contract

Answer:

A legally binding and enforceable agreement to do or not to do a specific thing

Question 4: Disability

Answer:

a physical or mental impairment that limits one or more major life activities

Question 5: Rollback Taxes

Answer:

taxes that can be assessed if the zoning (usage) of a property changes

Question 6: Executory Contract

Answer:

a contract that is not completely executed or performed

Question 7: Statute of Limitations

Answer:

a law establishing a time limit for civil suits

Question 8: Escrow

Answer:

a process in which funds and/or financial documents are held by a disinterested third party on behalf of the other two parties in the real estate transaction

Question 9: Mineral Estate

Answer:

the right of the owner to exploit, mine, and/or produce any or all of the minerals lying below the surface of the property

Question 10: Void Contract

Answer:

the contract has no legal effect

Question 11: Option Period

Answer:

the period of time in which the buyer, who has paid an option fee, has the property reserved and the option to walk away from the transaction for any reason

Question 12: Casualty Loss

Answer:

a sudden, unexpected event, like a fire, flood, storm, earthquake that causes serious damage

Question 13: Subagency

Answer:

when an agent works with the buyer but is not representing the buyer

Question 14: Novation

Answer:

the substitution of a new contract for an existing contract, relieves the original party of liability

Question 15: Offer

Answer:

a promise made by one party requesting something in exchange for that promise with the intention that the offeror will be bound to the terms if the offer is accepted

Question 16: Amendment

Answer:

items that are attached to the original document and should never be changed after the document has been signed and accepted

Question 17: Unilateral Contract

Answer:

a contract made between two or more parties in which only one of those parties makes a promise or otherwise accepts an obligation

Question 18: Title Policy (also known as Title Insurance)

Answer:

policy that protects homeowners (and likewise, lenders) from certain financial losses due to title issues, such as defects, encumbrances, and liens

Question 19: Bilateral Contract

Answer:

a contract in which one party must promise to do something for another party and that party must promise to do something for the first party

Question 20: Performance

Answer:

the responsibility of all the parties to carry out their part of a contract

Question 21: Buyer Rebate

Answer:

illegal action during a transaction that causes money to go back to the buyer, either at or after closing, without the knowledge of the lender

Question 22: Recourse Loan

Answer:

a loan in which the lender is allowed to seize the collateral property, and could also go after the borrower's other assets if the sale of the property doesn't cover the whole amount owed to the lender

Question 23: House flipping

Answer:

a type of real estate fraud in which someone purchases a property and then quickly resells it at an artificially high value through the use of a false appraisal

Question 24: Predatory Lending

Answer:

lending practices that take advantage of consumers by charging unnecessary fees or unsubstantiated interest rates, making loans that are too big or risky for the borrower, or pressuring buyers into loans

Question 25: Mortgagee Title Policy (also known as a Loan

Policy

Answer:

Title insurance for mortgage lenders, which protects their interests should a problem with the title arise

Question 26: Fair Lending Laws

Answer:

laws prohibiting lenders from discriminating against all of the same protected classes as the Fair Housing Act, with the addition of age, marital status, and receipt of public income