Ch08 Quiz: Real Estate 84 Sec ON1 (20349) Fall 2023

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Chabot College *

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84

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Chemistry

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Jan 9, 2024

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Ch08 Quiz Due Oct 29 at 11:59pm Points 20 Questions 20 Time Limit None Allowed Attempts 2 Attempt History Attempt Time Score LATEST Attempt 1 22 minutes 17 out of 20 Score for this attempt: 17 out of 20 Submitted Oct 29 at 7:39pm This attempt took 22 minutes. Take the Quiz Again 0 / 1 pts Question 1 If a contingency is not fulfilled despite a good faith effort to fulfill it, what may the person who benefits from the contingency do? Terminate the agreement and have the good faith deposit returned ou Answered ou Answered Remove the contingency and continue with the agreement Sue the other party for a breach of contract Either A or B orrect Answer orrect Answer
1 / 1 pts Question 2 Which party to a purchase agreement usually benefits from a contingency? Buyer Correct! Correct! Seller Broker Second buyer 1 / 1 pts Question 3 A buyer and seller agree that the sale will be contingent on the buyer obtaining financing. The buyer later decides that she doesn't want the property, so she doesn't bother to fill out any loan applications. The contingency is dropped from the agreement because: the contingency would be considered illegal the buyer did not make a reasonable, good faith effort to fulfill the contingency Correct! Correct! the only allowable contingencies are those that benefit the seller the contingency has been fulfilled
1 / 1 pts Question 4 A certain contingency benefits both the buyer and the seller. Whose consent is needed to remove this contingency? Seller consent only Buyer consent only Both the buyer's and the seller's consent Correct! Correct! No consent is needed 1 / 1 pts Question 5 Which of the following is not a necessary element in a contingency? The deadline by which point the condition must be met or removed The rights of the parties if the condition isn't met or removed by the deadline A clear description of how the condition can be met The damages that the party unable to fulfill the contingency will pay the other party Correct! Correct!
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1 / 1 pts Question 6 Which of the following financing contingencies would a seller prefer? A contingency calling for below-market interest rates A contingency calling for no closing costs for the loan A contingency calling for a loan on current market terms Correct! Correct! A contingency calling for a 15-year loan term 1 / 1 pts Question 7 Carl agrees to purchase Anna's property, subject to a contingency stating that he will obtain financing from an institutional lender. Carl has 20 days to remove or fulfill the contingency, but after 20 days has provided no notice of having removed or fulfilled the contingency. At this point, what can Anna do? Give Carl a Notice to Buyer to Perform, informing him that she will terminate the agreement if he does not remove the contingency Correct! Correct! Terminate the agreement immediately Terminate the agreement immediately and retain the good faith deposit Sue Carl for breach of contract
1 / 1 pts Question 8 A provision that is related to a financing contingency and often included as part of that contingency is a/an: purchase of replacement property contingency title insurance contingency appraisal contingency Correct! Correct! closing costs contingency 0 / 1 pts Question 9 If an inspection reveals problems with the property, the buyer may do any of the following except: have the problems repaired without telling the seller orrect Answer orrect Answer cancel the agreement request that the seller make repairs ou Answered ou Answered negotiate a lower sales price 1 / 1 pts Question 10
Which party has the responsibility of ordering the inspection and paying for the inspection? Buyer Correct! Correct! Seller Broker Lender 1 / 1 pts Question 11 If the buyer requests repairs as the result of an inspection, the seller may do any of the following except: reject the request cancel the agreement Correct! Correct! ask that the buyer pay for the requested repairs agree to perform only some of the repairs in exchange for removal of the inspection contingency 1 / 1 pts Question 12 Which of these types of contingency is the least common?
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Inspection contingency Sale of buyer's home contingency Financing contingency Seller's purchase of replacement property contingency Correct! Correct! 1 / 1 pts Question 13 The seller accepts an offer that includes a contingency for the sale of the buyer's current property. What must the buyer do once he accepts an offer on his current home? Hand the good faith deposit on the buyer's current home over to the seller Give the seller copies of any inspection reports for the buyer's current property Give the seller copies of the purchase agreement and escrow instructions Correct! Correct! Remove the contingency 1 / 1 pts Question 14
Pat and Abe do not sign a contingency for the sale of the buyer's property. However, it is clear that if Pat is not able to sell her home, she will not have the downpayment funds necessary to buy Abe's home. This is a/an: hidden contingency Correct! Correct! de facto contingency contingency by estoppel acceptable sales practice 1 / 1 pts Question 15 Which of the following is true about a sale of buyer's home contingency? It commits the buyer to accept the first offer on her house that comes along It should only be used together with a contingency for the seller's purchase of replacement property If the buyer's home is already in escrow, the contingency deadline will be the closing date Correct! Correct!
It allows the seller to decide which offer the buyer will accept for her property 1 / 1 pts Question 16 Which type of clause enables a seller to keep a property on the market after receiving a contingent offer, and to accept an offer from a second buyer? Extender clause Safety clause Release clause Correct! Correct! Hold harmless clause 1 / 1 pts Question 17 In which of the following circumstances involving a sale of buyer's property contingency would the buyer not be entitled to a refund of her good faith deposit? Buyer removes contingency after the seller accepts a second offer and notifies the buyer under a release clause Correct! Correct!
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The sale of the buyer's property collapses during the closing process, through no fault of the buyer Buyer cancels agreement after the seller accepts a second offer and notifies the buyer under a release clause The buyer fails to sell her home before the contingency deadline 1 / 1 pts Question 18 If the sale of buyer's home contingency only allows the seller to accept additional offers as backup offers, then: the buyer does not need to make a good faith effort to remove the contingency a release clause would not apply Correct! Correct! the contingency is meaningless the seller is not allowed to advertise the property 0 / 1 pts Question 19 A seller accepts an offer from a second buyer and notifies the first buyer under a release clause. The first buyer decides to remove the sale of buyer's property contingency. What happens?
The seller and first buyer will complete the transaction, assuming the buyer can still come up with a downpayment orrect Answer orrect Answer The good faith deposit will be refunded to the first buyer The second buyer will then be obligated to complete the transaction with the seller ou Answered ou Answered The second buyer will be entitled to purchase the property only if she has made a good faith deposit 1 / 1 pts Question 20 A contingent sale collapses because the buyer is unable to sell his own property. At this point, the parties should complete a: contingency removal contingency supplement addendum notice to perform cancellation agreement Correct! Correct! Quiz Score: 17 out of 20