Modern Real Estate Practice in Illinois Chapter 11 Flashcards

Modern Real Estate Practice in Illinois Chapter 11 Flashcards A contract is said to be bilateral ifall parties to the contract are bound to act A man and a woman sign a contract under which the man will convey the property to the woman. the man changes his mind, and the woman sues for specific performance.What is the woman seeking in this lawsuit?Conveyance of property A buyer and seller agree to the purchase of a house for $200,000. The contract contains a clause stating that "time is of the essence." Which of the following statements is TRUE?a. The closing may take place within a reasonable period after the stated date.b. A "time is of the essence" clause is not binding on either partyc. The closing date must be stated as a particular calendar date and not simply as a formula, such as "two weeks after loan approval."d. If the closing date passes and no closing takes place, the contract may have been breached.If the closing date passes and no closing takes place, the contract may have been breached In preparing a sales contract, an Illinois licensee mayfill in factual and business details in the blank spaces of a customary preprinted form Which provision could legally be place in an Illinois installment contract?a. "Buyer may not record this contract"b. "Seller will retain legal title"c. "Recording shall not constitute notice"d. "Buyer will forfeit $1,000 for recording" "Seller will retain legal title" A broker has found a buyer for a seller's home. The buyer has indicated in writing his willingness to buy the property for $1,000 less than the asking price and has deposited $5,000 in earnest money with the broker. The seller is out of town for the weekend, and the brokers has been unable to inform him of the signed document. At this point, the buyer has signed a(n) offer A buyer makes an offer in writing to purchase a house for $220,000, including its draperies, with the offer set to expire on Saturday at noon. The seller replies in writing on Thursday, accepting the $220,000 offer, but excluding the draperies. On Friday while the buyer considers this counter offer, the seller decides to accept the original offer, draperies included, and state that in writing. At this point, which of the following statements is TRUE?a. The buyer is legally bound to buy the house although the buyer has the right to insist that the draperies be includedb. The buyer is not bound to buyc. The buyer must buy the house and are not entitled to the draperiesd. The buyer must buy the

house but may deduct the value of the draperies from the

$220,000

The buyer is not bound to buy Under the statute of frauds, all contracts for the sale of real estate must be in writing to be enforceable A buyer verbally offers to buy a seller's house for $150,000.No written real estate sales contract is drawn up, but the seller agrees to the offer. What kind of contract is this?Unenforceable The sales contract says a man will purchase only if his wife approves the sale by the following Saturday. His wife's approval is a contingency A legally enforceable agreement under which two parties agree to do something for each other is known as a(n) valid contract

A buyer approaches a seller and says, "I'd like to buy your house." The seller says, "Sure," and they agree on a price.What kind of contract is this?Unenforceable The authorized practice of law was dealt with in which Illinois Supreme Court case?Chicago Bar Association, et al. v. Quinlan and Tyson, Inc.During the period of time after a real estate sales contract is signed but before title actually passes, the status of the contract is executory A buyer signs a contract allowing her to purchase the property for $230,000 any time in the next three months.The buyer pays the owner $5,000 at the time the contract is signed. Which of the following BEST describes this contract?a. Contingencyb. Optionc. Installmentd. Sales Option An Illinois broker does not need written consent of both parties to a transaction to do which of the following?a.Disburse interest accrued on an earnest money accountb.Fill in the blanks on a sales offer as directed by principlesc.Make changes in the terms of a signed sales contractd.Change the commission payment terms designated in the listing agreement Change the commission payment terms designated in the listing agreement A man and woman enter into a real estate sales contract.Under the contract's terms, the man will pay the woman $500 a month for ten years. The woman will continue to hold legal title to the property. The man will live on the property and pay all real estate taxes, insurance premiums, and regular upkeep costs. What kind of contract do these two people have?Land or installment contract A buyer makes an offer on a seller's house, and the seller accepts. Both parties sign the sales contract. At this point, the buyer has what type of title to the property?Equitable In a standard sales contract, several words were crossed out; others were inserted. To eliminate future controversy as to whether the changes were made before or after the contract was signed, the usual procedure is to have both parties initial or sign in the margin, along with date, near each change.On Tuesday, a sponsoring broker received $1,750 in earnest money from a buyer. The seller accepted the offer on Thursday. Where and when must the sponsoring broker deposit the buyer's money?In a special noninterest-bearing trust account by Friday