| A | B |
|---|
| A buyer withdraws her full price offer prior to acceptance. The earnest money deposit would> | be returned in full to the buyer |
| A client refuses to sell his property when presented with an offer according to the terms of a valid listing. The client: | does not have to sell |
| A contract could BEST be described as: | an offer and acceptance between competent parties upon consideration to do or not do some legal act |
| A contract for the purchase of real estate made by a 17-year-old person who intends to reside in the property is: | voidable |
| A contract was ambiguous in that numbers written as words differed from the numerals. Which of the following statements is true? | Words take precedence over numerals |
| A legal procedure brought about by one party to a contract to enforce the terms of the contract is: | specific performance |
| A new contract is substituted for an existing one and the parties are relieved of responsibility, is an example of: | novation |
| A property is listed for sale with an agent for $190,000; buyer submits an offer of $185,000. Which is true? | The buyer may withdraw his offer at any time prior to acceptance by the seller |
| A unilateral contract is enforceable against: | Optionor |
| A valid contract could be unenforceable because of: | The Statute of Limitations |
| A void contract is a contract that is: | not capable of enforcement |
| A voidable contract is: | valid until voided |
| A waiver is a: | Unilateral act |
| A written agreement whereby the seller agreed to convey title to a house for $180,000 and the buyer agreed to purchase the house for $180,000 with the sale to be completed within 30 days is: | an express bilateral executory contract |
| All transfers of real property MUST be in writing as required by the: | Statute of Frauds |
| An exclusive right to sell liOral testimonsting is an: | executory bilateral contract |
| An offer to purchase states that it would be kept open for acceptance for 3 days. The day after making the offer, and before acceptance, it is withdrawn. The real estate agent should inform the offeror that: | He may withdraw without penalty. |
| An offer to purchase contract becomes a binding contract between seller and purchases: | At the time the purchaser has been notified of the seller's written acceptance of the offer to purchace. |
| An option could be described as a/an: | unilateral contract |
| An option does NOT become a binding contract upon both parties until the: | option is exercised |
| Assuming a sales contract does not address the issue of death; which of the following actions would apply if the seller dies prior to the settlement? | The contract remains valid and enforceable. |
| Assuming that no written provision addresses the death of either party, a purchase contract where the seller dies after the contract is formed, but before settlement: | is binding upon the heirs of the seller |
| Commingling would occur when a licensee: | puts earnest money deposits in his personal account |
| Damages for a breach of contract in excess of the actual loss suffered would be: | punitive damages |
| Duress applied to a party to a contract makes the agreement: | voidable |
| Equitable title under an executory purchase contract would refer to: | buyer's interest |
| Every contract MUST include: | an offer and acceptance |
| Failure to meet the requirement set forth in a contract is a : | breach |
| If upon receipt of an offer to purchase under certain terms the seller makes a counter offer, the prospective purchaser is: | relieved of his/her original offer |
| If, upon receiving an offer to purchase under certain terms and conditions, the seller makes a conditional acceptance, the offeror is: | relieved from the original offer unconditionally |
| Joe and Done agree that Joe will purchase Don's house for $125,000 cash on June 30th. This is an example of: | bilateral, express, executory |
| Licensed real estate brokers are given authority to draw those documents necessary in the course of their work by: | Arizona constitution |
| Oral testimony can be accepted as evidence for each following example EXCEPT: explaining the contract means other than stated; clarifying an ambiguity; showing fraud induced the contract; showing a modified written agreement | explaining the contract means other than stated |
| "R" submits a purchase agreement to "T" who accepts it and makes minor changes. Then "R" dies. What is the status of the contract? | Void because the changes were not initialed by the purchaser |
| The "time is of the essence" clause in a contract means: | must be accepted within the time stated |
| The earnest money given with an offer to purchase and held in the broker's trust account is said to belong to: | the buyer |
| The money that the salesperson receives from the buyer as escrow deposit should be: | deposited in the agency trust account |
| The offeror dies just prior to the offeree acceptance of the offer. The contract is: | unenforceable |
| The person who signs to show acceptance of the sales contract is the: | Offeree |
| The provision in a purchase contract that provides that the buyer shall forfeit the deposit if the buyer fails to complete the purchase is known as: | liquidated damages |
| The Statute of Frauds was passed to prevent: | perjury |
| The Statute of Frauds became a law in England in 1677 and has since been enacted in all states of the U.S. It requires that: | Real estate contracts must be written |
| To create a binding contract for real property, the acceptance of the offer MUST be signed by the | Offeree |
| Under contract law the following is required for a valid contract: | offer must be accepted |
| Under the Statute of Frauds, which of the following would NOT be covered? | an agreement between two brokers to split commissions |
| Voidable could BEST be described as: | valid unless voided |
| When all parties to a contract have agreed to its terms, this is referred to as: | meeting of the minds |
| Which of the following is FALSE regarding an option:consideration is necessary for a valid option;optionee has a legal right to return of consideration if option is not exercised; an option is assignable unless prohibited; Optionee has the option to refrain from exercising option | Optionee has a legal right to return of consideration if option is not exercised |
| Which of the following would NOT terminate an offer: a request by offeree for more time for acceptance; revocation by offeror; an acceptance contingent upon a change in price; the death of the offeror | a request by offeree for more time for acceptance |
| Which of the following MUST be included in an Arizona Real Estate Purchase Contract? | state the form of earnest money deposit |
