Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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After a contract of sale is signed but prior to
closing, the buyer has what type of title?
a. | right of equity | c. | no
title | b. | actual legal title | d. | a warranty
deed |
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2.
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What concept gives a vendee the right to sue the
vendor for specific performance on a signed contract?
a. | equitable title | c. | it is
in the deed | b. | statute of
frauds | d. | legal titile |
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3.
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The buyer under a contract of sale has:
a. | actual title. | c. | no
title | b. | equitable title. | d. | a
deed |
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4.
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The seller in a purchase contract situation is
the:
a. | vendor. | c. | lessor | b. | vendee. | d. | lessee |
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5.
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Before the closing the vendee has:
a. | legal title. | c. | no
titile | b. | equitable title. | d. | a
deed |
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6.
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A seller who defaults on a contract of sale may be
forced to sell by being sued for:
a. | monetary damages. | c. | occasional performance | b. | specific
performance. | d. | statute of frauds |
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7.
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Equitable title:
a. | gives the buyer the right to sue the seller for specific
performance. | c. | there is no such thing | b. | is conveyed by delivery of the deed. | d. | is clear title to
a property |
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8.
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If a broker suspects that a listed property may
have once been a toxic waste dump, the broker should recommend:
a. | an environmental audit contingency provision in the
offer. | c. | a property insepction | b. | an offer without any contingencies. | d. | an
appraisal |
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9.
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Prior to closing, a purchaser has:
a. | full title. | c. | legal
title | b. | a right of equity. | d. | no interest in the
property |
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10.
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To be enforceable, a real estate sales contract
must contain:
a. | a notary seal. | c. | the
legal signature of the listing real estate broker. | b. | a list of all property defects. | d. | an accurate
description of the property. |
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11.
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The exam refers to the contract between the seller
and buyer as the contract of sale or the purchase contract. In Montana, we usually refer to this
contract as the:
a. | buy-sell agreement. | c. | employment agreement | b. | listing
agreement. | d. | marketing agreement |
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12.
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The contract of sale:
a. | may be written on any contract form the parties desire
to use | b. | may only be written on the standard form contract
approved by the real estate board. | c. | is never written,
it is only verbal | d. | is not legally
binding |
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13.
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The contract of sale obligates:
a. | the seller to sell and buyer to
buy. | c. | the seller to sell but the buyer does not have to
buy | b. | the seller to pay the broker's
commission. | d. | the buyer to buy but the seller does not have to
sell |
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