LAW OF CONTRACTS CHAMPIONS EXAM, PRACTICE EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM 400 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |ALREADY GRADED A+

LAW OF CONTRACTS CHAMPIONS EXAM,

PRACTICE EXAM AND STUDY GUIDE LATEST 2024

ACTUAL EXAM 400 QUESTIONS AND CORRECT

DETAILED ANSWERS WITH RATIONALES (VERIFIED

ANSWERS) |ALREADY GRADED A+

LAW OF CONTRACTS CHAMPIONS EXAM

Buyers' and sellers' marital status is not required in the contract.

- ANSWER- true

Which of the following is a physical characteristic of land? -

ANSWER- indestructability

Which disclosure is provided to comply with federal

requirements for properties built before 1978? - ANSWERLead-Based Paint Disclosure

If the loan factor is $4.49 and the loan amount is $357,500, taxes

are $7300/year and the insurance is $3103 per year, what is the

monthly PITI payment? - ANSWER- $2,472.09

A loan assumption might be desirable because: - ANSWERThe loan assumption is generally less costly than a new loan

Earnest money is deposited in an escrow account when: -

ANSWER- The contract is signed by all parties and acceptance

is communicated

Jake (Seller) and Sarah (Buyer) entered into a contract for the

sale of Jake's personal residence. In the contract, Jake promised

to deliver a seller's disclosure of property condition within 5

days of the effective date of the contract. Jake never delivered

the disclosure as promised. Which of the following statements is

true? - ANSWER- Sarah has the right to terminate the contract

and receive a refund of earnest money prior to closing (Page 24)

Damage or destruction of a property under contract prior to

closing: - ANSWER- May result in termination of the contract

When a party is considering consulting an attorney for advice in

a transaction an agent should: - ANSWER- Never discourage

the use of an attorney

A(n) __________ is one that combines some of the elements of

a sale with a lease. - ANSWER- lease purchase agreement

Prior to closing, severe damage to or destruction of a property

under contract: - ANSWER- Can result in termination of the

contract

The four major types of listing agreements are, exclusive

agency, net listing, exclusive right to sell and __________. -

ANSWER- open listing

In a __________ lease, the tenant's rent is based, in whole or in

part, on the receipts of his or her business. - ANSWERpercentage lease

A(n) __________ is a type of seller financing wherein the owner

retains title to the property while the purchaser takes possession

of the premises and pays on the principal. - ANSWER- contract

for deed

Which of the following requires a contract for the conveyance of

real estate to be in writing to be enforceable? - ANSWERA(n) __________ is one that combines some of the elements of

a sale with a lease. - ANSWER- lease purchase agreement

Prior to closing, severe damage to or destruction of a property

under contract: - ANSWER- Can result in termination of the

contract

The four major types of listing agreements are, exclusive

agency, net listing, exclusive right to sell and __________. -

ANSWER- open listing

In a __________ lease, the tenant's rent is based, in whole or in

part, on the receipts of his or her business. - ANSWERpercentage lease

A(n) __________ is one that combines some of the elements of

a sale with a lease. - ANSWER- lease purchase agreement

Prior to closing, severe damage to or destruction of a property

under contract: - ANSWER- Can result in termination of the

contract

A(n) __________ is an agreement between two or more parties

to do something or to refrain from doing something. -

ANSWER- contract