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18
Nov

Contracts. Practice Real Estate Exam

Posted by on in Contracts

Contracts. Practice Real Estate Exam

 

177        What is the toxic insulation material that was used in residential housing for insulation from the 1970’s to the 1980’s?               UREA-FORMALDEHYDE INSULATION        ASBESTOS            FIBERGLASS         LEAD BASED INSULATION            Urea-formaldehyde foam insulation (UFFI) started being used in the 1970s and stopped being used In the 1980s because concerns began to develop about the toxic formaldehyde from the breakdown of old foam. Asbestos was a commonly used material for insulation and is no longer commonly used in construction in the United States.       Contracts

178        Which of the following best describes a contract where only one of the parties is obligated to act?       UNILATERAL       FULLY EXECUTED             MULTI-LATERAL               BILATERAL         In a unilateral, also known as a one sided contract, where one party, known as the offeror, makes a promise in exchange for an act by another party, known as the offeree. This means that the offeror will have to fulfill their promise only if the offeree acts.  A bilateral contract obligates both parties of the contract to perform a duty, whereas a unilateral contract is sought out, not obligated; an option is an example of a unilateral contract.          Contracts

179        Bob is a tenant and has agreed to pay 50% of the landlord’s expenses, what type of lease has Bob entered into?             NET LEASE           PARTIAL LEASE  UTILITY LEASE    LANDLORD DISCLOSURE LEASE    In a net lease the tenant will pay a portion or sometimes all of the expenses of the landlord as long as the terms are agreed upon in the lease.     Contracts

180        When creating a legal contract, if one party wants to establish that time is an important factor, that party should use what language to demonstrate this?  TIME IS OF THE ESSENCE               TIME IS A FACTOR             TIME IS A NON-ISSUE      TIME IMPORTANCE OF TIME CANNOT BE DEFINED IN A LEGAL CONTRACT   If the words "time is of the essence" and one party does not act accordingly, this can be deemed a breach of contract.               Contracts

182        Which of the following would constitute an agency relationship between a buyer and a broker? BUYER/BROKER CONTRACT         BUYER/SELLER CONTRACT           LISTING AGREEMENT      DISCLOSURE STATEMENT             A Buyer/broker contract is what officially creates an agency relationship between the buyer and the broker.    Contracts

183        A contract in which both parties have an obligation(s) to fulfill is a ___________ contract.   BILATERAL           OPTION               UNILATERAL       CONSIDERATION             A bilateral contract obligates both parties of the contract to perform a duty, whereas a unilateral contract is sought out, not obligated; an option is an example of a unilateral contract. Option – An option agreement or contract is a contract that will allow a buyer or potential renter to agree to buy a property or rent a property within a certain amount of time for an agreed upon price. Once the contract expires, the seller or the lessor will no longer have to honor the contract.          Contracts

184        An agreement whereby the buyer is obligated to pay the broker a commission is an example of this type of agreement.   BUYER/BROKER                LISTING AGREEMENT      OPTION               NET LEASE                In a buyer/broker agreement, the buyer is obligated to pay the broker his/her commission.  Consideration is money or anything of value that is promised to another party when making a contract. A net lease is the opposite of a gross lease.  A net lease can be modified in any number of ways to best meet the demands of the tenant and the landlord; items that are generally negotiable are utilities, taxes, insurance, and repair & maintenance items. Many times, a lease will be setup to increase in price over time to cover the cost of inflation. Option – An option agreement or contract is a contract that will allow a buyer or potential renter to agree to buy a property or rent a property within a certain amount of time for an agreed upon price. Once the contract expires, the seller or the lessor will no longer have to honor the contract.                 Contracts

 

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