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Question:

A real estate buyer can rescind an offer until ____

A the seller’s acceptance has been communicated to the buyer.
explanation

It is the communication of the acceptance of the offer to the buyer that limits their ability to rescind the offer.

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Related Questions

Liquidated damages cannot exceed ____ in the instance of an owner-occupied one-to-four unit residential property.

3% of the sale price

Liquidated damages are limited to 3% of the sales price on an owner-occupied one-tofour unit residential property (a protected property).

Which of the following is an acceptable termination date for an enforceable exclusive listing of residential real property?

180 days after the listing agreement is signed.

An exclusive listing requires a specific termination date. This is generally based on the date the listing contract is signed.

Upon the default of a buyer under a land sales contract, the seller ____

files a quiet title action.

In the instance of a land contract, also known as a contract sale, there is no trustee. Further, the vendor already has legal title to the property so answer selection D would impact them (the seller) rather than the vendee (the buyer). Thus, on a default by the buyer, the seller files a quiet title action.

Acknowledgment by a notary public of the signature on a deed is done as a prerequisite for ____

recording the deed at the county recorder’s office.

Recording requires a notary acknowledgment verifying the identity of the signors. Even if a deed is valid, it cannot be recorded without acknowledgment.

Under a (n) ____, the agent’s fee is set as all sums received exceeding a net price established by the owner.

net listing

The answer is in the question. A net listing gives an established amount to the seller and all the excess to the broker.

A listing agreement in which a seller agrees to pay a broker a commission if they produce a “ready, willing, and able” buyer and agree to use due diligence in procuring a buyer is an example of a (n) ____

bilateral executory contract.

Bilateral refers to a promise to perform made by one party in exchange for a promise to perform made by another party. Executory means the promised activities will be performed by both parties in the future.

An offer to perform in accordance with contractual obligations is an example of ____

tender.

To make an offer is to “tender” the offer. Refer to the Real Estate Glossary if any of these terms are unknown.

Which of the following is true?

A valid contract can be an unenforceable contract.

An oral contract for more than a year may be valid but unenforceable.

When an existing contract is replaced by an entirely new contract, it is an example of ____

novation.

This question illustrates the need to be familiar with real estate terminology. Under a novation, there is a substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties. Refer to the Real estate glossary at the back of this book for definitions to critical real estate terms you are likely to encounter on the state exam.

A (n) ____ is an example of a bilateral contract in which both the offeror and the offeree are grantors.

exchange agreement

This question requires you to identify a bilateral contract in which both parties may be in both positions. Only an exchange agreement provides this opportunity.

Writing “without recourse” on the back of a check creates a (n) ____

qualified endorsement.

“Qualified” suggests the endorser meant to set certain restrictions on the check. In this instance, if the check is not honored, the endorser is not liable.

All of the following are essential elements of a contract, except ____

performance.

Performance is not essential to form a valid contract. Performance may be required to complete the activity called for in a contract after it has been signed (offer and acceptance), but is not necessary to the formation of a contract.

A salesperson obtains a listing on a family member’s house. After taking the listing, the salesperson changes brokers. The listing ____

belongs to the salesperson’s previous broker.

The broker is the agent to the principal and the salesperson is an agent of the broker. The listing was generated under the prior broker’s license and thus stays with that broker.

Failure to perform as agreed under a contract is known as a (n) ____

breach.

The failure to perform under a contract is known as a breach. The concept of answer novation is referenced in another question in this section.