Contracts/Agreements/Home definitions

The valuable consideration necessary to make a contract valid must be

Something specifically offered in exchange for something else.

A buyer makes an offer with a 48-hour expiration time. 12 hours later, she changes her mind and informs the seller that the offer is withdrawn? What is the status of the offer?

The offer is extinguished along with the seller's right to accept it.

A bilateral contract is one in which

both parties promise to do something in exchange for the other party's performance

The necessary condition of mutual consent may be found lacking in a contract if

The offer that was accepted is vague.

What is the statute of limitations?

A set period of time during which an injured party can rescind a contract.

If an offeree alters any part of an offer and then signs it,

The original offer is extinguished and the offeror is not bound by any agreement.

Which of the following contracts can be assigned to another party?

A contract for the sale of a house.

Can an oral contract between a buyer and a seller to transfer real estate be enforced?

No. Real estate sales contracts must be in writing.

An adhesion contract

Offers one party only the option of accepting or rejecting the contract.

A breach of contract is

A failure to perform according to the terms of the contract.

A homeseller signs a listing agreement with a broker and the next week decides not to sell and revokes the listing. What may the broker have to do?

The broker may have a claim for damages.

Which type of pipe is typically found in drainage systems

Cast iron

All of the following are guidelines usually provided by a state's Department of Health for the location of wells EXCEPT

well must not be located where the water table is less than 10 feet below the surface.

Which of these types of wire would probably not be found in a residence?

Steel wire

Real estate licensees should know enough about building ordinances to be able to

Alert clients of potential problems in a home.

The part of the foundation that transmits loads directly to the soil is called

The footing.

What does the R-factor measure?

How much insulation a material provides.

Which foundation is a flat concrete pad poured directly on the ground?

Slab-on-grade

What kind of refrigerant is used for cooling in air conditioners?

Freon

What is the purpose of Planned Unit Development zoning?

To promote an efficient land use design that maximizes open space when whole tracts are developed.

A court orders Jerry to allow neighbor Loretta to drive across his property because it is the only way Loretta can reach her property from a public road. The easement created is an

easement by necessity.

Bob signs a six-month apartment lease agreement with John. What kind of lease is this?

Estate for years

A person who owns all ownership interests in real property is said to own

legal title.

An encroachment arises when

one property physically intrudes into another without authorization.

Eminent domain

can take a property from an unwilling property owner by a process of condemnation.

To be valid and enforceable, a contract must

include valuable consideration.

Included in the definition of "real estate" are

fences and roads on a parcel of land.

Unlike other property taxes, a special assessment tax

applies only to properties which will directly benefit from the project to be funded.

Restrictive covenants

take priority over less restrictive zoning ordinances.

Which of the following is required for a legal description to be adequate?

It must accurately locate and identify the boundaries of the property and distinguish it from all other properties.

When a joint tenant dies, that tenant's interest

passes to the surviving joint tenants.

The owner of a cooperative owns a(n)

proprietary lease.

The primary agents of private land use control are

property owners by means of deed restrictions.

An estate is transferred with the stipulation that trees on the premises will never be cut down or the seller will take back the property. This kind of estate is a

fee simple defeasible.

In a tenancy in common, the co-owners

share an indivisible interest.

A contract in which an owner hires a broker to market the property creates an agency relationship between

Broker and seller

Which of the following types of information can a licensee legally provided to both a principal and a customer?

Facts

Agent Sam told a buyer that the fence line also marked the property line. Agent Sam knew that the property line did not extend to the fence line. Agent Sam's actions are an example of what?

Active fraud

The principles of an agency relationship include all of these factors except which one?

Compensation

Antitrust laws prohibit

Market allocation

Which of the following is a common complaint buyers have against brokers?

Misrepresentation of the facts

When a home is listed, what is the most limited agency that can be created?

Special agency

The principal of Notice is sometimes called what?

Disclosure

What are the two forms of fraud?

Active and passive

An agent's duties to a principal include all of the following except which?

Legal advice

Which of the following is not a form of agency?

Closed agency

Three forms of agency are

Express agency, Implied agency, and Ostensible agency.

Puffing is best characterized as which of the following

Subjective opinion

Agent Fred fronts his cousin Norm money to buy a client's house. Shortly after the closing, Agent Fred flips the house and realizes a substantial profit. Agent Fred's actions might be describe as

self-dealing.

Which BEST describes the role of a fiduciary?

A fiduciary relationship is established when a property manager agrees to represent an owner in leasing the owner's property.

Which of the following best defines negligent misrepresentation?

Failure to use ordinary or reasonable care in a situation

An agency relationship

can occur through implication (what you might say or do) without a written contract

What are the three primary areas of disclosure?

Agency, property condition, and environmental hazards

The broker, who has listed a property for sale, has the obligation to

do whatever the owner has instructed him to do legally.