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Questions and Answers
What is the maximum duration for exclusive listings in California?
What is the maximum duration for exclusive listings in California?
Which conditions should be included in a contingency clause in a purchase agreement?
Which conditions should be included in a contingency clause in a purchase agreement?
What could be a possible outcome if a landlord failed to respond to plumbing issues in a tenant's rental unit?
What could be a possible outcome if a landlord failed to respond to plumbing issues in a tenant's rental unit?
What is required for a one-year lease to be enforceable?
What is required for a one-year lease to be enforceable?
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What clause allows a broker to collect a commission after the listing period has expired?
What clause allows a broker to collect a commission after the listing period has expired?
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What happens if a property sells during the safety period of a listing agreement?
What happens if a property sells during the safety period of a listing agreement?
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In a situation where two brokers show the same property to the same buyer, who receives the commission?
In a situation where two brokers show the same property to the same buyer, who receives the commission?
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Which act is considered illegal for real estate brokers in California?
Which act is considered illegal for real estate brokers in California?
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What is the maximum commission rate for a broker generally determined by?
What is the maximum commission rate for a broker generally determined by?
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If a seller decides not to proceed after agreeing to a sale, what can the agent demand?
If a seller decides not to proceed after agreeing to a sale, what can the agent demand?
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In the event of a buyer breaching the contract, what may a seller retain from the deposit?
In the event of a buyer breaching the contract, what may a seller retain from the deposit?
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What factors determine the limits on the size of a security deposit for a residential unit?
What factors determine the limits on the size of a security deposit for a residential unit?
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Which of the following statements about listings is true?
Which of the following statements about listings is true?
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In a net lease, which expense would a tenant typically NOT be responsible for?
In a net lease, which expense would a tenant typically NOT be responsible for?
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What best defines a 'rental contract' in terms of real estate?
What best defines a 'rental contract' in terms of real estate?
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Study Notes
Chapter 7 Quiz - Key Concepts
- Deposit on Breach of Contract: A seller may retain up to 3% of the purchase price as liquidated damages if a buyer breaches a contract, but cannot retain the entire deposit. Actual damages caused by the breach can be deducted from the deposit
- Definition of Rent: Rent is consideration paid for a leasehold interest in real property.
- Listing Agreements: Listing agreements are not required to last longer than 100 days in California, and both spouses must sign a listing agreement to sell community property. Exclusive listings can be for only one day. A one-year lease must be in writing to be enforceable
- Security Deposits: There are limits on security deposits for residential units, based on lease term length and whether the unit is furnished, not square footage.
- Net Lease: A tenant in a net lease pays property taxes, insurance, and other expenses in addition to rent.
- Contingency Clauses in Purchase Agreements: Contingency clauses should outline: the nature of the contingency, the duration, and the removal conditions.
- Landlord-Tenant Disputes: If a tenant claims the landlord didn't address plumbing problems, impacting the unit's habitability, the tenant may avoid further liability. The lease would not terminate, but the tenant is usually able to make the repairs and request reimbursement.
- Listing Safety Clause: In a 30 or 60 day safety clause, if the property sells within that time, the agent is owed a commission. Also, the agent must disclose the people they've worked with.
- Illegal Broker Actions: A broker in California is not allowed to have an exclusive listing with no termination date. Also, they cannot use deceptive methods such as net listings without disclosure of commission amounts.
- Subleases: A sublease transfers possession for less than the entire remaining lease term; the original tenant remains liable.
- Commission Rates: There are no legal limits on commission rates, these are established by agreement between the broker and the principal.
- Procuring Cause of Sale: Listing agreements do not specify who receives commissions, the agent that works with a buyer to secure the offer and acceptance will usually receive the commission.
- Protection Clause (Safety Clause): Permits the broker to receive commission even after the listing period expires, provided the buyer was originally found during the listing period.
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Description
Test your knowledge on key concepts from Chapter 7 of Real Estate principles. This quiz covers topics such as breach of contract, rent definitions, listing agreements, security deposits, net leases, and contingency clauses. Perfect for students preparing for their exams in real estate law and practices.
