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

The most essential element of an enforceable listing contract is that it provides ____

a written contract documenting the broker’s employment.

The critical element to recognize in this question is that a listing contract is an employment contract.

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.

Which of the following is true concerning an option?

An option is valid so long as consideration is actually delivered.

The amount of consideration is not relevant. However, the consideration itself needs to be delivered to create a valid and enforceable option.

The hold harmless clause in a listing agreement protects the agent from liability for ____

misinformation about the property from the seller.

This clause is in the listing contract between the seller and the broker, for the broker to be “held harmless.” Logically, it is protection against actions by the other party to the contract.

A contract based on an unlawful purpose is ____

void.

Any contract to perform an illegal act is void by definition. This is one of the four essential conditions of a contract.

In order to qualify for recording with the County Recorder, a land sales contract needs to ____

be signed by both the buyer and seller and be acknowledged before a notary public.

Unlike a transfer by grant deed, a land sales contract needs to be signed by both parties. The signatures require acknowledgment before a notary public to be recorded.

When damages resulting from a breach of the contract are not adequate, each of the following may request specific performance, except the ____

broker.

The parties to an escrow do not include the broker. Thus, the damages described do not include the broker’s fee nor would the broker have any authority to demand specific performance.

Foreclosure occurs when a ____ seizes and sells a borrower's ____ after the borrower has failed to ____ the lender.

lender, collateral, repay

A lender requires collateral for a loan and if the buyer defaults on the terms of the loan agreement, usually through failure to make payments in a timely manner, the lender can and will seize the collateral, usually the home and/or property.

Joan sells her house to her brother Mike on a handshake. This contract is:

unenforceable

In order of a contract of sale to be valid, there must be signatures from both parties.

If one party in a contract is coerced or placed under duress by the other party, the contract is ____ at the discretion of the injured party.

voidable

The party that suffers from duress has the right to cancel the contract. Therefore, the contract is voidable by the injured party only.

The most essential element of an enforceable listing contract is that it provides ____

a written contract documenting the broker’s employment.

The critical element to recognize in this question is that a listing contract is an employment contract.

The essential elements of an enforceable contract are ____

d. competency, mutual consent, lawful object, consideration.

Another question in this section on the Statute of Frauds shows that not all contracts need to be in writing, eliminating both answer choices B and C.

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.

Seller Vega listed a vacant lot with Broker Wright for $120,000. Prospective buyer Marty submitted an offer at a purchase price of $100,000 with the offer to expire in 30 days. The next day, Seller Vega countered at $110,000. Buyer Marty rejected the counter. Three days later, Seller Vega delivered to Broker Wright a signed acceptance of Buyer Marty’s initial $100,000 purchase offer. When Broker Wright told Buyer Marty of Seller Vega’s acceptance, Marty stated he did not intend to buy the property. Based on the foregoing actions ____

there is no contract.

When a counteroffer is made, no matter what the reason may be, the original offer is voided.

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

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