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Contracts In Real Estate Transactions Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. A ____ is a contract executed by a borrower and lender regarding the terms, conditions and obligations of both parties concerning the debt.

Question 2 2. Two weeks ago Valerie's exclusive right to sell listing agreement expired. A potential buyer from three weeks ago places an offer that Valerie accepts. Her old broker demands his commission. What result?

Question 3 3. Which of the following is the most likely to happen if for whatever reason the contract isn't completed?

Question 4 4. A ____ is a written unconditional promise to pay a specific sum of money upon demand or on a specific date.

Question 5 5. Which type of listing agreement allows you to sell your own house and not pay the broker a commission?

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Question 6 6. What is the definition of earnest money?

Question 7 7. A person that gives value in good faith for a note and has no notice of any adverse claim or defect regarding it is called a ____.

Question 8 8. A ____ creates a promissory note and gives it to the ____.

Question 9 9. Mary decides that she wants to purchase a zippy new scooter so she visits Joe's Used Scooter Shop. After a lengthy discussion with his customer, Joe draws up an executory contract which Mary happily signs and becomes the proud new owner of a scooter. Which of the following situations BEST describes why an executory contract was used for the sale of the scooter?

Question 10 10. Which of the following helps determine the amount of the earnest money payment?

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Question 11 11. What is the main difference between an executed contract and an executory contract?

Question 12 12. Penelope wants her curly locks to be straightened for her big date with Julio. She makes an appointment with New Look Hair Salon. After washing, drying, and ironing, Penelope's hair looks as straight as a pin! Thrilled with her new hairdo, she promptly pulls out her credit card and paid her bill. What type of contract did Penelope have with New Look Hair Salon?

Question 13 13. A ____ listing agreement entitles a broker to a commission when the property is sold even if the broker was not responsible for generating the sale.

Question 14 14. Who owns the earnest money escrow account?

Question 15 15. A ____ listing agreement is illegal in some states.

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Question 16 16. Sheila rented a storefront for her business, Sheila's Schnauzers. She plans on renting for a period of one year. What will Sheila and the landlord sign?

Question 17 17. Which of the following may be a component of a real estate financing transaction?

Question 18 18. Larry wants more than one broker competing to get him the best deal possible. What type of listing agreement may accomplish this?

Question 19 19. Which of the following is an acceptable place to hold an earnest money deposit escrow account?

Question 20 20. In the case McDonald v. Hewitt, why did the court rule that McDonald could not receive a remedy from Hewitt?

Contracts In Real Estate Transactions Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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