45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Section 12 Unit 1 Exam
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Question #1
Brynn’s listing agent told potential buyers that all offers on Brynn’s property would be considered at 5 p.m. on May 3. By that date and time, there were four offers. The persons making these offers are the _______.
A.
Offerors
B.
Examiners
C.
Executors
D.
Offerees
Question #2
Which of these statements about inclusions and exclusions is true?
A.
Televisions that are fixed to the wall are typically considered to be real property.
B.
Sellers may use this section to indicate personal property that is included in the sale.
C.
Exclusions that are not listed in the MLS cannot be excluded in the sales contract.
D.
Buyers may use this section to specify which items they want the seller to upgrade.
Question #3
In the sample sales contract you reviewed, the cost of title insurance was allocated to the buyer or the seller in which subsection?
A.
Inspections, Reports, and Certificates
B.
Escrow and Title
C.
Government Requirements and Retrofit
D.
Other Costs
Question #4
Daisy is a buyer who made an offer for an older house on three acres. Daisy reviewed the seller disclosures and ordered a professional home inspection. Based on the results of the inspection, which showed a number of latent defects that made Daisy uncomfortable, she decided to exercise her contractual right to cancel the agreement. What’s NOT true about this situation?
A.
Daisy is entitled to receive her earnest money back as long as she's formally canceled the purchase agreement within the time period specified in the contract contingency.
B.
Daisy is obligated to give the seller a copy of the inspection report at no cost.
C.
The seller is obligated to repair the defects identified in the inspection report before accepting any other offer.
D.
If Daisy hadn't decided to cancel the agreement, she could have exercised her contractual right to request the seller make repairs to the property based on the inspection reports.
Question #5
Which section of the sample purchase agreement you reviewed explains how and when the balance of the buyer’s down payment is to be made?
A.
Finance Terms section
B.
Settlement section
C.
Financing section
D.
Purchase Price section
Question #6
Amy is about to complete her very first sales contract. What should she do to prepare?
A.
Review the contract and make sure she understands what each section means.
B.
Nothing. The sales contract will write itself.
C.
Have a drink. It's time to celebrate!
D.
Grab waters for herself and her clients.
Question #7
In the buyer’s investigation of property section of the sample sales contract you reviewed, the ___________ is obligated to cover the cost of any damages caused by inspection.
A.
Home inspector
B.
Broker
C.
Seller
D.
Buyer
Question #8
You’re a new licensee who’s thrilled to be working with five different buyer clients. Under what circumstances is it appropriate for you to determine the earnest money amount for your clients?
A.
When the buyer's target is a second home.
B.
In none of these circumstances.
C.
If the buyer is a first-time buyer.
D.
If the buyer is elderly.
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