CONTRACT LAW
The requirement that a contract must not be for an illegal purpose or against public policy is referred to as:
A. A meeting of the minds
B. Common Law
C. Zoning Restrictions
D. Legality of Object
Legality of Object
An oral lease for two years is not enforceable due to which of the following:
1. Uniform Commercial Code (UCC)
2. Statute of limitations
3. Statute of Frauds
4. Usury Laws
Statute of Frauds
Under the Truth in Lending Law (Regulation Z), the lender disclosure statement would include which of the following?
a. An approximate amount charged for a late payment.
b. an estimate of the percentage rate.
c. The borrower's credit worthiness?
d. the annual percentage rate and the total dollar amount of the finance charge
the annual percentage rate and the total dollar amount of the finance charge
A broker was employed by an owner to sell her home. Which of the following statements does NOT correctly describe the broker's agency relationship with the seller?
1. The broker has become the seller's agent.
2. The broker is a general agent.
3. The broker is a special agent.
4. The broker owes fiduciary duties to the seller.
The Fair Housing Act covers which of the following types of properties?
1. All buildings of five or more dwelling units.
2. An owner-occupied duplex.
3. A boarding house in which the owner is an occupant.
4. An owner-occupied triplex.
All buildings of five or more dwelling units.
A contract is void if:
A. One of the parties is a minor.
B: It requires an illegal act for performance.
C: A married man buys property without his wife being on title.
D: The seller decides he doesn't want to sell.
It requires an illegal act for performance.
A voluntary agreement between legally competent parties to do or refrain from doing some legal act is called a:
1. lis Pendens
2. will
3. attachment
4. condition
Condition
Under the Uniform Commercial Code, the document used to create a lien against articles of personal property is called a ______.
1. chattel mortgage
2. financial statement
3. security agreement
4. bill of sale
Security agreement
You listed a home that was subsequently show by 6 cooperating brokers. How many seller-agency relationships ar involved in this transaction?
ONE
A client wants to buy some country property and build a new house and raise llamas. Before doing so, she should check with which of the following?
1. LCDC
2. The county for land use laws and permits.
3. The city of land use laws and permits.
4. Local planning department.
2. The county for land use laws and permits.
Which of the following is an example of a unilateral real estate agreement?
A. Mortgage
B. Option
C. Trust Deed
D. Land Sales ContractOption
Which of the following statements concerning the assignment of contracts is CORRECT?
1. Since the listings belong to the Principal Broker, a listing agreement can be assigned to another broker without the seller's consent.
2. Unless prohibited in contract, a land sales contract may be assigned by the buyer to another party.
3. To protect a borrower from having the terms and conditions of a loan changed by the lender, the buyer should have the document recorded.
4. An offer to purchase agreement can be assigned to another party without the knowledge or consent of all other parties to the agreement.
2. Unless prohibited in contract, a land sales contract may be assigned by the buyer to another party.
Which of the following statements about housing loans with federal government supports is FALSE?
1. the federal government supplies funds to the lending agency.
2. the federal government insures the lending agency against losses.
3. FHA may insure mortgages for either apartment house projects or single family residences.
4 Federal Veterans Affairs loan guarantees may be used for condominium financing.
1. The federal government does NOT supply funds to the lending agency.
In the case of dual agency, which of the following is not a fiduciary obligation?
1. Provide legal representation for either party.
2. Avoid advocating for one party over the other.
3. Avoid disclosing confidential information without permission.
4. Avoid the concealment of pertinent facts.
1. You are not obligated to provide legal representation. (Nor should you! You are not an attorney.)
If a property owner was found in violation of a zoning ordinance how might it affect the property?
1. Could create a lien on the property.
2. Could create an unmarketable title.
3. Could create an unearned increment.
4. Could create a higher tax base for the property.
2. Could create an unmarketable title.
Using threats to force a person enter into a contract involuntarily is known as:
A. duress.
B. fraud
C. misrepresentation
D. forcible action
Duress
An option contract is _____.
A. A contract where the seller has the option of selling the property or not.
B. A unilateral contract where one party is given the right to purchase the property within a certain period of time with all terms and conditions agreed upon.
C. An unenforceable contract.
D. A bilateral contract for the sale of personal property.
A unilateral contract where one party is given the right to purchase property within a certain period of time with all the terms and conditions agreed upon.
Under a land sales contract, the party who has the legal title during the term of the contract is the:
1. vendor
2. vendee
3. mortgagee
4. mortgagor
A broker is an agent of which of the following the following parties?
1. Principal Broker
2. Buyer
3. Principal
4. Seller
Principal Broker
Restrictions in a deed limiting the sale of a property to only one specific nationality would be _____.
1. unenforceable
2. unenforceable if the deed restriction was written prior to 1968.
3. enforceable under federal law, but not under state law.
4. enforceable by civil suit.
unenforceable
A listing agreement between a broker and a seller may be terminated by:
1. death of either party
2. bankruptcy of the seller
3. destruction of the property
4. all of the above would terminate a listing
A contract in which the intentions of the parties are shown by their actions is called:
1. an expressed contract.
2. an implied contract.
3. an executory contract.
4. a bilateral contract.
Implied Contract
A. Redlining
B. Steering
C. Warehousing
D. Relocating
It would be contrary to fiduciary duty for a broker to do which of the following?
1. Tell that a house has a leak in the roof.
2. Reveal the house has drainage problems.
3. Confide to a buyer that a home owner will take less than the list price.
4. Tell prospective buyers the seller recommends they have the well water tested.
Confide to a buyer that a home owner will take less than list price
Which of the following is FALSE concerning a real estate Broker?
1. All written offers are to be submitted to the seller.
2. A broker may place a blind ad.
3. A fixed place of business must be maintained by the principal broker.
4. A broker's commission is usually specified in the listing agreement.
2. A broker may NOT place a blind ad.