A deed is the instrument used to convey ownership of
Detailed Answer
c. A deed conveys ownership of real property;
personal property is conveyed by lease, bill
of sale, or title.
2
A customer goes into a restaurant and orders
dinner. At the end of the meal, is the customer
legally obligated to pay the check?
Detailed Answer
b. A valid contract can be implied by the action
of the parties.
3
The statute of frauds requires that
Detailed Answer
c. Every state has adopted the statute of frauds,
which requires offers, acceptances, land contracts, and other real estate documents to be
in writing to be enforceable.
4
Harriet is closing on the purchase of a farm and
has requested the seller to provide her with an abstract of title. Harriet’s should have the abstract
examined by and receive an opinion of title from
Detailed Answer
c. An opinion of title is a legal opinion and a
real estate agent cannot practice law. Only an
attorney may examine an abstract of title and
render an opinion as to the validity of clear
title to property. An abstract is the entire
recorded history of a parcel of land.
5
Linda Robinson’s offer to buy David Hendley’s
house has been accepted, but the actual sale
will not take place for three months. Until then,
their written sales contract is considered
Detailed Answer
a. An executory contract has not yet been performed; after the sale, the contract will have
been executed.
6
In May, the Kleins accepted an offer to sell their
house to the Grosses. In July, the Grosses paid
the purchase price and received a deed to the
house and the keys. After July, their contract
was considered
Detailed Answer
d. An executed contract is one in which everything promised has been done, with no provisions left unfulfilled.
7
Repair or remodeling of a property generally
adds to its worth. In recognition of the role
contractors and suppliers play in increasing the
value of a property, in many states, they are
assured payment for their goods and services
by being able to file a
Detailed Answer
c. Contractors and others are permitted to file a
mechanic’s lien against the improved property.
8
Alan is purchasing a duplex as an investment
property. He would be most interest in knowing the appraised value based on the
Detailed Answer
c. Appraisers use the gross rent multiplier in
the income approach to determining value of
residential properties such as single-family
homes and duplexes.
9
The earnest money accompanying a purchase
offer
Detailed Answer
d. A sales contract can be valid even without
any earnest money; its main use is to reassure
the seller and prove the buyer’s good faith.
10
What law governs the relationship between a
real estate licensee and a client?
Detailed Answer
a. There is a whole body of law and regulations
that address the relationship between agents
and their clients. The sum total of the various legal provisions that address the agency
relationships is known collectively as the Law
of Agency.
