Chapter 7: Specific Real Estate Contracts Flashcards Preview

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Flashcards in Chapter 7: Specific Real Estate Contracts Deck (17)
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Harry purchased a duplex that has one unit leased by Mary for seven more months. Harry's purpose for purchasing the duplex was to occupy one unit and his brother, Kyle, the other. Upon closing, Mary:

has the legal right to occupy the unit for the balance of her lease term.


John has entered into a five-year lease that provides for an annual rent increase of $500 per month. John's agreement is known as:

a Graduated Lease.


A provision in the purchase and sale agreement that stipulates the contract will not be binding unless the buyer can obtain a 30-year fixed conventional loan with an interest rate not to exceed 7% is called:

a contingency.


Name two real estate documents are unilateral contracts?

Option Contract
Listing Agreement


When a tenant transfers the right to possess a leased property to another for less than the unexpired term of the lease, __________ has occurred.

a sublease


The money deposited at the time of an offer to purchase that will be used for liquidated damages to the seller in the event of buyer breach is known as:

an earnest money deposit.


A unilateral agreement to market and procure a buyer for a property that establishes an agency relationship with a homeowner is known as:

a Listing Agreement.


Under a contract for deed (also known as a land contract), the seller:

retains naked title to the property until the property is paid for in full by the buyer.


To be the procuring cause of a sale occurring, a real estate agent must:

be the person primarily responsible for bringing a ready, willing, and able buyer who enters into a sale agreement with the seller.


A lease created to include certain expenses on a property in addition to a stipulated monthly rate is called:

a Net Lease.


An agreement that binds the seller to pay a commission regardless of who sells the property is known as:

an Exclusive Right to Sell Listing.


If a property owner has signed an agreement with a real estate agent setting forth the amount he/she wants to realize from the sale of his/her property and agrees that the real estate agent's commission will be any amount over that amount, the owner has signed:

a Net Listing.


The purpose of the Multiple Listing Service (MLS) is to:

enable real estate agents to share information on their listings with other real estate agents.


The Statute of Frauds requires all real estate contracts be in writing except for a:

lease with a term of less than one year.


A Gross Lease is one in which there is:

a fixed rental amount.


An agreement wherein an owner of property establishes an agency relationship with one licensee, but retains the right to sell the property without the payment of any commission, is known as:

an Exclusive Agency Listing.


A real estate contract can be terminated with no duty of further performance on the part of either party if: (name 3 things)

1. there is a contingency which is not satisfied.
2. an event occurs creating the impossibility of performance.
3. either party declares bankruptcy prior to closing.