Real Estate Contract Creation and Contingencies

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What is the role of unqualified acceptance in the creation of a contract?

It voids the contract
It secures the deposit amount
It grants the seller equitable title
It gives the buyer equitable title (correct)

What is the purpose of a deposit in a real estate contract?

To secure the validity of the contract and the buyer's interest (correct)
To determine the expiration date of the contract
To secure the validity of the contract and the seller's interest
To define contingencies

What do contingencies refer to in a real estate contract?

Liquidated damages claimed by the seller
Conditions that must be met before enforcing the contract (correct)
Specific performance obligations
The expiration date of the contract

What options does a seller have in case of a buyer default?

Cancelling the contract, claiming liquidated damages, or suing for specific performance (A) Signup and view all the answers

What recourse does a buyer have in case of a seller default?

Cancelling or suing for damages or specific performance (C) Signup and view all the answers

Who controls the deposit in a real estate contract?

A disinterested party in accordance with escrow instructions (D) Signup and view all the answers

What is one of the primary clauses that should be included in a contract for sale?

Earnest Money (B) Signup and view all the answers

In a contract for deed, what happens at the end of the term?

Buyer pays off remaining balance and obtains legal title (D) Signup and view all the answers

What is an important consideration in a contract option?

How to exercise an option (B) Signup and view all the answers

What recourse do buyers have in case of default in a contract for deed?

Buyer may sue for cancellation and damages (B) Signup and view all the answers

Which document should be included to ensure the validity of a contract for sale?

Valuable Consideration and Signatures (B) Signup and view all the answers

In a contract option, what happens if exercised by the optionee?

The option becomes a bilateral sales contract (D) Signup and view all the answers

What is the function of contingencies in a real estate contract?

To ensure the validity of the contract (D) Signup and view all the answers

In a real estate contract, what does unqualified acceptance of an offer by the buyer result in?

Enforcement of specific performance (C) Signup and view all the answers

What is the purpose of earnest money escrow in a real estate contract?

To secure the validity of the contract and buyer's interest (C) Signup and view all the answers

If a buyer defaults on their obligations under a real estate contract, what can a seller do?

Claim liquidated damages or enforce specific performance (D) Signup and view all the answers

What happens if a seller defaults on their obligations under a real estate contract?

The buyer may sue for damages or specific performance (B) Signup and view all the answers

Who controls the deposit in a real estate contract and is obligated to follow escrow instructions?

A disinterested party (D) Signup and view all the answers

What is a key feature of an executory contract?

Must be fulfilled (D) Signup and view all the answers

What is an essential element that should be included in a contract for deed?

Title Evidence (A) Signup and view all the answers

In a contract option, what is the purpose of recording the option?

To make the option legally binding (A) Signup and view all the answers

What is an important right that the buyer has in a contract for deed?

The right to use, possess, or profit from the property (A) Signup and view all the answers

What recourse does a seller have in case of buyer default in a contract for deed?

Pursue litigation for specific performance or damages (B) Signup and view all the answers

What does a non-refundable consideration for an option in a contract signify?

It confirms the buyer's commitment to purchase within the option period. (B) Signup and view all the answers

What must be fulfilled in an executory contract?

Legal enforceability (A) Signup and view all the answers

In a contract for deed, what is the buyer responsible for during the term of the agreement?

Maintaining upkeep of the property (D) Signup and view all the answers

What is an important provision in a contract for sale to ensure its validity?

Legal description (C) Signup and view all the answers

What is a common clause provision in a contract option?

Forfeiture of option money (B) Signup and view all the answers

In a contract for sale, what does 'primary clauses' typically refer to?

Options and essentials (A) Signup and view all the answers

What happens if an option in a real estate contract is exercised by the optionee?

The option becomes a bilateral sales contract (B) Signup and view all the answers

What must be met before a contract can be enforced?

Contingencies (D) Signup and view all the answers

Which party controls the deposit in a real estate contract?

Escrow agent (A) Signup and view all the answers

What does a buyer gain with unqualified acceptance of an offer?

Power to enforce specific performance (C) Signup and view all the answers

In a real estate contract, what is the purpose of the buyer's deposit?

Ensuring validity of the contract (A) Signup and view all the answers

If a buyer defaults on obligations under a contract, what can a seller do?

Claim liquidated damages (C) Signup and view all the answers

What happens if a seller defaults on their obligations under a real estate contract?

Buyer may cancel the contract or sue for damages (A) Signup and view all the answers

What does unqualified acceptance of an offer in a contract result in for the buyer?

Gaining equitable title and the ability to seek specific performance (C) Signup and view all the answers

What is the primary purpose of having contingencies in a real estate contract?

To ensure certain conditions are met before enforcement (D) Signup and view all the answers

If a seller defaults on obligations under a real estate contract, what recourse does the buyer have?

Cancel the contract or sue for damages (B) Signup and view all the answers

What is the function of earnest money escrow in a real estate contract?

To secure the validity of the contract and buyer's interest (C) Signup and view all the answers

What role does a disinterested party play in a real estate transaction?

Handle the deposit and follow escrow instructions impartially (C) Signup and view all the answers

In a real estate contract, what happens if a buyer defaults on their obligations?

The seller has options like claiming liquidated damages or suing for specific performance (A) Signup and view all the answers

What is a primary clause that should be included in a contract for deed?

Price and Terms (B) Signup and view all the answers

In a contract option, what is a common clause provision?

Forfeiture terms (A) Signup and view all the answers

In a contract for sale, what does 'validity' typically refer to?

Valuable consideration (C) Signup and view all the answers

What recourse does a seller have in case of buyer default in a contract for deed?

Sue for specific performance or damages (C) Signup and view all the answers

What is one of the key elements that should be met before a contract can be enforced?

Valuable consideration (D) Signup and view all the answers

What is an important right that the buyer has in a contract for sale?

Maintaining upkeep of the property (A) Signup and view all the answers

What is the purpose of contingencies in a real estate contract?

To ensure conditions are met before enforcing the contract (D) Signup and view all the answers

In a real estate transaction, who is obligated to act in accordance with escrow instructions?

The disinterested party (B) Signup and view all the answers

What happens if a seller defaults on their obligations under a real estate contract?

The buyer may cancel or sue for damages (C) Signup and view all the answers

Which party has options including cancellation, claiming liquidated damages or suing for specific performance if a buyer defaults in a real estate contract?

The seller (A) Signup and view all the answers

What does the unqualified acceptance of an offer in a contract result in for the buyer?

The power to enforce specific performance (A) Signup and view all the answers

What is the main function of earnest money escrow in a real estate contract?

To secure both the validity of the contract and buyer's equitable interest (D) Signup and view all the answers

What is one of the common clause provisions in a contract option?

Non-refundable consideration for the option right (B) Signup and view all the answers

In a contract for deed, what does the buyer generally hold during the term of the agreement?

Equitable title (A) Signup and view all the answers

What is a key element that should be included in a contract for sale to ensure its validity?

Valuable consideration (A) Signup and view all the answers

What happens at the end of the term in a contract for deed?

Buyer obtains legal title (B) Signup and view all the answers

What is one of the primary clauses that should be included in a contract for sale?

Conveyed interest type (D) Signup and view all the answers

In a contract option, what is the purpose of recording the option?

To create legal enforceability (D) Signup and view all the answers

Real Estate Contract Creation and Contingencies

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Questions and Answers

What is the role of unqualified acceptance in the creation of a contract?

What is the purpose of a deposit in a real estate contract?

What do contingencies refer to in a real estate contract?

What options does a seller have in case of a buyer default?

What recourse does a buyer have in case of a seller default?

Who controls the deposit in a real estate contract?

What is one of the primary clauses that should be included in a contract for sale?

In a contract for deed, what happens at the end of the term?

What is an important consideration in a contract option?

What recourse do buyers have in case of default in a contract for deed?

Which document should be included to ensure the validity of a contract for sale?

In a contract option, what happens if exercised by the optionee?

What is the function of contingencies in a real estate contract?

In a real estate contract, what does unqualified acceptance of an offer by the buyer result in?

What is the purpose of earnest money escrow in a real estate contract?

If a buyer defaults on their obligations under a real estate contract, what can a seller do?

What happens if a seller defaults on their obligations under a real estate contract?

Who controls the deposit in a real estate contract and is obligated to follow escrow instructions?

What is a key feature of an executory contract?

What is an essential element that should be included in a contract for deed?

In a contract option, what is the purpose of recording the option?

What is an important right that the buyer has in a contract for deed?

What recourse does a seller have in case of buyer default in a contract for deed?

What does a non-refundable consideration for an option in a contract signify?

What must be fulfilled in an executory contract?

In a contract for deed, what is the buyer responsible for during the term of the agreement?

What is an important provision in a contract for sale to ensure its validity?

What is a common clause provision in a contract option?

In a contract for sale, what does 'primary clauses' typically refer to?

What happens if an option in a real estate contract is exercised by the optionee?

What must be met before a contract can be enforced?

Which party controls the deposit in a real estate contract?

What does a buyer gain with unqualified acceptance of an offer?

In a real estate contract, what is the purpose of the buyer's deposit?

If a buyer defaults on obligations under a contract, what can a seller do?

What happens if a seller defaults on their obligations under a real estate contract?

What does unqualified acceptance of an offer in a contract result in for the buyer?

What is the primary purpose of having contingencies in a real estate contract?

If a seller defaults on obligations under a real estate contract, what recourse does the buyer have?

What is the function of earnest money escrow in a real estate contract?

What role does a disinterested party play in a real estate transaction?

In a real estate contract, what happens if a buyer defaults on their obligations?

What is a primary clause that should be included in a contract for deed?

In a contract option, what is a common clause provision?

In a contract for sale, what does 'validity' typically refer to?

What recourse does a seller have in case of buyer default in a contract for deed?

What is one of the key elements that should be met before a contract can be enforced?

What is an important right that the buyer has in a contract for sale?

What is the purpose of contingencies in a real estate contract?

In a real estate transaction, who is obligated to act in accordance with escrow instructions?

What happens if a seller defaults on their obligations under a real estate contract?

Which party has options including cancellation, claiming liquidated damages or suing for specific performance if a buyer defaults in a real estate contract?

What does the unqualified acceptance of an offer in a contract result in for the buyer?

What is the main function of earnest money escrow in a real estate contract?

What is one of the common clause provisions in a contract option?

In a contract for deed, what does the buyer generally hold during the term of the agreement?

What is a key element that should be included in a contract for sale to ensure its validity?

What happens at the end of the term in a contract for deed?

What is one of the primary clauses that should be included in a contract for sale?

In a contract option, what is the purpose of recording the option?

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