NJ Real Estate - Chapter 11 Real Estate Contracts Flashcards

NJ Real Estate - Chapter 11 Real Estate Contracts Flashcards A buyer has a valid contract to buy a commercial building but has agreed to let his friend buy it instead. Can the friend legally take over the buyers obligation to buy?Yes, by a process called assignmentYes, by a process called substitutionNo, unless the seller agrees in writingNo, because each buyer is unique and no substitutions are permitted Yes, by a process called assignment A buyer made a written offer to buy a three-unit apartment building for $900,000, to close on December 30. The seller agreed to the offered price and all other terms, replacing December 30 with January 2. At this point, is either party free to walk away?Only the buyerNo, neither the seller nor buyerOnly the sellerYes, either the seller or buyer Yes, either the seller or buyer A real estate contract did not state that time is of The closing day came and went. What is the status of the contract?The contract is invalid because it did not close at the agreed-upon time.The contract is unenforceable but may continue to closing, if all parties agree.The contract is valid and enforceable.The contract is voidable if one of the parties so desires.The contract is valid and enforceable.For which of these types of properties do the buyers have a seven-day period in which they may cancel the sales contract?Certain condominiumsCertain commercial propertiesAny one-to-four-family dwellingsAny leased properties Certain condominiums A person drives into a gas station and tops of her gas tank.Why is she required to pay for the gas?She created an express contract when she drove onto the property of the gas station.She created an implied contract when she filled her tank with gas.She created a voidable contract by entering the property.She created an oral contract when she asked the attendant to activate the gas pump.She created an implied contract when she filled her tank with gas.A broker found a buyer for a man's home. The buyer made a written offer for less than the asking price and included a $5,000 check for earnest money. Reached by phone, the seller verbally accepted the offer, and that acceptance was relayed to the buyer. What is the status of both parties at this time?There is a valid, enforceable contract between the two parties.Neither party is obligated because the seller's acceptance and the buyer's notification were verbal.The $5,000 check for the earnest money must be

cleared in order to form a valid contract.This is an implied agreement that is enforceable by either party.Neither party is obligated because the seller's acceptance and the buyer's notification were verbal.What is the term for a legally enforceable agreement under which two parties have agreed to do something for each other?An escrow agreementBilateral legal promisesA valid contractAn option agreement A valid contract What is the status of the real estate sales contract between the time that it is signed and before title actually passes?VoidableExecutoryExculpatoryImplied Executory

A 17-year-old man signs a contract to buy a house for himself and his wife. What is the status of this contract in New Jersey?The contract is voidable.The contract is valid.The contract is justified.The contract is implied.The contract is valid.On Thurday, theme for 395 an oF er in writing to purchase the home for $395,000, drapes included. They stipulated that the sellers must seeps or reject the offer by noon on.Saturday. The sellers promptly agreed to the offered price but they struck out the request for the drapes. As the buyers were considering what to do next, the sellers had their agent contact the buyer's agent, agreeing to include the drapes. At this point, what is the buyers' status?The buyers are obligated to buy the property.The buyers are not obligated to buy the property.The buyers must buy the property without the drapes.The buyers must buy the property but can deduct the value of the drapes.The buyers are not obligated to buy the property.In New Jersey, what must a valid contract for the sale of real estate include?An earnest money depositAn adequate description of the propertyThe signatures of witnessesAn earnest money deposit and an adequate description of the property, but it does not require signatures of witnesses An adequate description of the property In filling out the sales contract, someone crossed out and replaced certain words. What is the usual procedure to eliminate future controversies?Write a letter to each party listing the changes.Have each party write a letter to the other approving the changes.Redraw the entire contract reflecting the changes.Have both parties initial or sign in the margin near each change.Have both parties initial or sign in the margin near each change.The sellers had told the buyers that they would leave the washer and dryer. However, their movers moved it along with everything else. The written agreement did not mention either appliance. Do the buyers have a right to expect replacement by the sellers?Yes, because the contract to sell was only completed by partial performanceYes, by the legal expectation of novationNo, because there was no undue influenceNo, because of the parol evidence rule No, because of the parol evidence rule The sales contract says that the buyer will purchase the property only if his wife approves the home within five working days. What is this type of condition called?A contingencyA reservationA warrantyValid consideration A contingency In what time period is a broker responsible for depositing funds used as earnest money?Within 3 days of receiptWithin 5 business days of receiptWithin 5 calendar days of receiptWithin 10 days of receipt Within 5 business days of receipt

When is a contract considered bilateral?When one of the parties is a minorWhen the contract has yet to be fully performedWhen only one party to the agreement is bound to performWhen all parties to the contract are bound to perform When all parties to the contract are bound to perform What does a suit for performance ask for?Money damagesA new contractA deficiency judgmentA forced sale or purchase A forced sale or purchase For what sales contracts may New Jersey real estate brokers and their salespeople fill in the blanks?One-to-four-family propertiesOne-to-twenty-unit residential propertiesAny residential and small commercial propertiesResidential and industrial properties One-to-four-family properties The buyers paid a fee to the sellers for the promise that the sellers would convey title to the property within a certain time frame if the buyers wanted to proceed. At the end of the time frame, the buyers decided to not buy after all, but the seller was able to keep the fee already paid. What kind of contract did the buyers have with the sellers?The sellers had an executed agreement.This was a discharged agreement.The sellers had an implied listing agreement.The buyers had an option to buy.The buyers had an option to buy.The buyer made an offer that was then presented by the listing agent to the seller. The seller accepted the offer and signed all forms.Meanwhile, the buyer had a change of heart and instructed her agent to cancel the offer. What is the status of both parties at this time?The real estate agents will have to compare times to determine if the offer was accepted in the proper time frame.The parties will have to ask an arbiter for resolution.The buyer is obligated to buy the property because the buyer's offer was accepted in writing.There is no agreement because the buyer withdrew her offer before being notified.There is no agreement because the buyer withdrew her offer before being notified.