Unit 6 Quiz
1 A tenant failed to pay rent, so the owner gave the tenant a 3-Day Notice to Pay Rent or Quit. This notice: Points: 0
gives the lessor 3 days to pay the rent or cure the breach of the rental agreement.
gives the tenant 30 calendar days to pay the rent or cure the breach of the rental agreement.
removes the tenant from the unit and returns the rental unit to its owner.
gives the tenant 3 days to pay the rent or cure the breach of the rental agreement.
Hint: The 3-day notice gives the tenant 3 days to pay the rent or take whatever action is required to cure the breach of the rental agreement.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5G: classify leases, lease terms, and responsibilities of the parties to a lease.
QID:TB-RE-PRIN-16A # 124
2 Which of the following is not necessary for a lease to be valid? Points: 0
Signature of the tenant
Signature of the owner
Amount of rent
Term of lease
Hint: It is common practice, and makes common sense to produce all lease agreements in writing. It must be signed by the lessor, but not necessarily by the lessee. Again, it is common practice for the lessee to sign the lease, but the law requires only that the lease be delivered to the lessee for it to be binding.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5G: classify leases, lease terms, and responsibilities of the parties to a lease.
QID:TB-RE-PRIN-16A # 121
3 Seller Chris listed a vacant lot with a broker at $111,400. Prospective buyer Jordan submitted an offer of $111,000 that was to expire in three days. The next day, Chris made a counteroffer of $111,200. When Jordan did not respond within the three-day period, Chris signed an acceptance of Jordan’s $111,000 original offer and instructed the broker to deliver it to Jordan. Jordan told the broker that he had decided not to purchase the property, but Chris insisted they had a deal. Based on these circumstances, there is: Points: 0
a valid contract.
no contract.
an invalid contract.
an enforceable contract.
Hint: Chris’ counteroffer terminated the buyer’s original offer.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5F: recall the purpose of counteroffers and options.
QID:TB-RE-PRIN-16A # 118
4 The primary document used to make an offer on real estate is called a(n): Points: 0
listing.
option.
grant deed.
purchase agreement.
Hint: In California, most real estate agents use the Residential Purchase Agreement and Joint Escrow Instructions, commonly known as a purchase agreement or purchase offer because it is an offer to purchase real property. Some licensees refer to the purchase agreement as the deposit receipt because it acts as the receipt for earnest money given by the buyer to secure an offer.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5E: identify clauses in the Residential Purchase Agreement and Joint Escrow Instructions.
QID:TB-RE-PRIN-16A # 111
5 When agreed upon in advance, what is the compensation to the seller if the buyer does not keep his agreement to purchase? Points: 0
50% of the deposit
3% of the deposit
liquidated damages
10% of the purchase price
Hint: Parties to a contract may decide in advance the amount of damages to be paid, should either party breach the contract. In fact, the offer to purchase, or sales contract, usually contains a printed clause that says the seller may keep the deposit as liquidated damages if the buyer backs out without good reason.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5E: identify clauses in the Residential Purchase Agreement and Joint Escrow Instructions.
QID:TB-RE-PRIN-16A # 115
6 If a buyer wants early possession of the property before escrow closes, which document should be used? Points: 0
Writ of Possession
Residential Lease Agreement
Sandwich Lease Agreement
Interim Occupancy Agreement
Hint: In order to protect the rights and obligations of both seller and buyer, an Interim Occupancy Agreement should be used if a buyer wants early possession of the property.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5E: identify clauses in the Residential Purchase Agreement and Joint Escrow Instructions.
QID:TB-RE-PRIN-16A # 114
7 Mary’s broker presented a full-price offer to purchase to Susan’s home with a 45-day closing. Susan accepted the offer but changed the closing date from 45 days to 90 days because she needed more time. In this situation, buyer Mary is: Points: 0
not bound by the original offer she sent to Susan.
bound by Susan’s acceptance because she only changed the closing date.
bound by the original offer with the original closing date.
not bound by the original offer, but is bound by Susan’s counteroffer.
Hint: By changing the number of days for the closing, Susan created a counteroffer, therefore, the original offer automatically terminates.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5F: recall the purpose of counteroffers and options.
QID:TB-RE-PRIN-16A # 117
8 Real estate contracts must: Points: 0
have all the elements of a valid contract.
be in writing, according to the statute of frauds.
be signed by the parties.
be in writing, be signed by the parties, and have the elements of a valid contract.
Hint: Real estate contracts must have all the elements of a valid contract. Additionally, they must be in writing, according to the statute of frauds, and must be signed by the parties.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5E: identify clauses in the Residential Purchase Agreement and Joint Escrow Instructions.
QID:TB-RE-PRIN-16A # 109
9 Which of the following statements is correct regarding an option contract to purchase real estate? Points: 0
The optionor is not obliged to sell the property.
The option is a bilateral contract.
The consideration must be money in excess of $100.
The optionee is not obligated to purchase the property.
Hint: The optionee (buyer) is not required to buy the property. If the optionee decides to exercise the option and buy the property, the optionor (seller) must sell. An option is a unilateral contract, and the option must have actual monetary consideration to be valid, but no specific amount is required.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5F: recall the purpose of counteroffers and options.
QID:TB-RE-PRIN-16A # 120
10 A listing is a contract by which a principal, or seller, employs a broker to: Points: 0
sell real estate.
purchase real estate.
invest in real estate.
appraise real estate.
Hint: A listing is a contract by which a principal, or seller, employs a broker to sell real estate. Primarily, a listing agreement is an employment contract between a seller and a broker.
CO0: General Content
QID:TB-RE-PRIN-16A # 106
11 Unlawful acts by a landlord (lessor) to evict a tenant include all of the following except: Points: 0
changing the locks.
removing doors and windows.
using the eviction process to remove the tenant.
shutting off utilities.
Hint: The landlord cannot turn off utilities, change the locks, remove outside doors or windows, or remove the tenant’s personal property. If the landlord does any of the preceding, he or she will be liable for the actual damages of the tenant, plus $100 per day that it continues. [C.C. §789.3].
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5G: classify leases, lease terms, and responsibilities of the parties to a lease.
QID:TB-RE-PRIN-16A # 123
12 What is a lawsuit that removes an unlawful holdover tenant? Points: 0
An unlawful detainer action
A writ of possession
A holdover agreement
An eviction notice
Hint: An unlawful detainer action is a lawsuit to remove an unlawful holdover tenant (e.g. after the expiration of a 3-day or 30-day notice) and return the rental unit to its owner.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5G: classify leases, lease terms, and responsibilities of the parties to a lease.
QID:TB-RE-PRIN-16A # 125
13 Legally, when is rent due if there is no specific agreement? Points: 0
Beginning of the month
Middle of the month
End of the month
15 days after the rental agreement is signed
Hint: Rent is payment for the use of a property, generally under a lease agreement. The rent becomes due at the end of the term, unless otherwise agreed upon in the lease.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5G: classify leases, lease terms, and responsibilities of the parties to a lease.
QID:TB-RE-PRIN-16A # 122
14 A prospective buyer made an offer and gave the seller’s broker a $500 check as a deposit for the sale of a residence. Before the offer was given to the seller, the buyer contacted the broker and withdrew the offer. What should the broker do with the $500 check? Points: 0
Deposit it in escrow
Return it immediately
Hold it until the seller is notified
Keep it to be reimbursed for out-of-pocket expenses
Hint: Until an offer is accepted by the seller, the buyer owns the funds, and the broker must obey the buyer’s instructions. If the seller refuses the offer, the check is returned to the buyer.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5F: recall the purpose of counteroffers and options.
QID:TB-RE-PRIN-16A # 119
15 The statute of frauds requires that contracts for the sale of real estate must: Points: 0
be recorded.
be in writing.
be bilateral contracts.
have a cash deposit.
Hint: According to the Statute of Frauds, to be enforceable, real estate contracts must be in writing.
CO5: Specify basic characteristics of contracts and identify the types of contracts used in real estate transactions.
LO5D: specify the purpose of the statute of frauds, the parole evidence rule, and the statute of limitations.
QID:TB-RE-PRIN-16A # 110

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