PERRY REAL ESTATE FINAL EXAM PRACTICE QUESTIONS AND ANSWERS
COMPREHENSIVE STUDY MATERIAL
1. If I am makes an offer on a house and the seller excepts in writing. What is
the current status of this relationship?: Because the seller has promised to sell and the buyer has
promised to buy, it is clearly a bilateral contract. It is express because they announced their intentions in writing. This
contract is executory because the sale has not closed yet
2. Additional conditions that must be satisfied before a sales contract is fully
enforceable are called: contingencies
3. If I'm in allows a woman to back out of the contract, returned the earnest
money to her, and both are back to the positions they held before the contract,
the contract has been: Rescission allows both parties to return to their original possessions before the
contract, so any monies exchange must be returned
4. A buyer makes an offer to buy a sellers house. Pursuant it to this offer, the
buyer is obligated to perform only if the buyer is first able to sell her condo.
This is an example of: A property sale contingency protects a buyer who has to sell a property in order to
buy the sellers property
5. On March 7 a buyer and a seller execute a contract for the purchase of the
sellers property. Closing is set for June 10. On April 15 the property is struck
by lightning and destroyed by the resulting fire. If the uniform vendor and
purchase or risk act has been adopted by the state in which the property is
located, which party bears liability for the loss?: In states that have adopted the uniform
vendor and purchaser act, the seller remains responsible for the property until the day of closing
6. The term statue of limitation is best described as the limitation on the: Every
state limits the right during which parties to a contract may bring a legal action to enforce their rights. Rights not
enforced within the Applicable time period Are lost
7. In case the buyer decides not to buy for no legal reason, the contract may
provide at the earnest money is there as: Liquidated damages limit the compensation available
to the injured party should a breach of contract occur
8. What is minimum consideration in a valid contract: Anything the parties agree is good
and valuable
9. What is an example of a unilateral contract: In a unilateral contract only one party is obligated
to perform. The optionor-owner of the property must sell at the agreed-upon price only if the optionee he decides
to buy
, PERRY REAL ESTATE FINAL EXAM PRACTICE QUESTIONS AND ANSWERS
COMPREHENSIVE STUDY MATERIAL
10. A woman is buying a man's house and wants to take over the mortgage.
The lender releases the man from the obligation substituting the woman as
the party liable for the debt. This new agreement is called: Novation
11. A real estate broker in ounces to the sales people in her office that she will
pay $1000 bonus to the top selling sales person each quarter. This contract
is an: The otter of a bonus to the top selling sales person each quarter is an express contract because the broker
clearly stated her intentions and words to the sales people. It is unilateral contract because she's obligated to keep
her promise but the sales people are not obligated to perform
12. A testamentary trust is created by: A will
13. In any Township what is the number of the section designated as the school
section: 16
14. Lonnie conveys the ownership of his house to his mother and stipulates
that upon her death he will recapture ownership. The interest Lonnie has in
the property is a: reversionary interest
15. If a creator of a life estate chooses not to name my remainderman the
creator has: The property will revert back to the creator
16. A descendent left a will giving his neighbor the right to use a well on the
descendents land as long as the neighbor lived. The neighbors interest in the
property is properly called: An easement in gross is an individual interest in someone else's land
17. A lawsuit to terminate an easement is called an action to: Action to quiet title
18. If an adjacent public land use diminishes the value of your property you
may claim compensation under which theory: Inverse condemnation
19. The process by which government can acquire ownership of private land
for public use is: Condemnation
20. A partnership which is for a long-term arrangement is called: Syndicate
21. This is a special type of zoning used to control density by imposing restric-
tion such as setbacks: Bulk zoning
22. A manufactured home can be turned into real estate by what process: AFFIX-
ATION
23. A developer grants a local power company the right to install necessary
transmission lines. This right is an example of a: Easement in gross
24. The beneficiary of a land trust is also commonly: The trustor
COMPREHENSIVE STUDY MATERIAL
1. If I am makes an offer on a house and the seller excepts in writing. What is
the current status of this relationship?: Because the seller has promised to sell and the buyer has
promised to buy, it is clearly a bilateral contract. It is express because they announced their intentions in writing. This
contract is executory because the sale has not closed yet
2. Additional conditions that must be satisfied before a sales contract is fully
enforceable are called: contingencies
3. If I'm in allows a woman to back out of the contract, returned the earnest
money to her, and both are back to the positions they held before the contract,
the contract has been: Rescission allows both parties to return to their original possessions before the
contract, so any monies exchange must be returned
4. A buyer makes an offer to buy a sellers house. Pursuant it to this offer, the
buyer is obligated to perform only if the buyer is first able to sell her condo.
This is an example of: A property sale contingency protects a buyer who has to sell a property in order to
buy the sellers property
5. On March 7 a buyer and a seller execute a contract for the purchase of the
sellers property. Closing is set for June 10. On April 15 the property is struck
by lightning and destroyed by the resulting fire. If the uniform vendor and
purchase or risk act has been adopted by the state in which the property is
located, which party bears liability for the loss?: In states that have adopted the uniform
vendor and purchaser act, the seller remains responsible for the property until the day of closing
6. The term statue of limitation is best described as the limitation on the: Every
state limits the right during which parties to a contract may bring a legal action to enforce their rights. Rights not
enforced within the Applicable time period Are lost
7. In case the buyer decides not to buy for no legal reason, the contract may
provide at the earnest money is there as: Liquidated damages limit the compensation available
to the injured party should a breach of contract occur
8. What is minimum consideration in a valid contract: Anything the parties agree is good
and valuable
9. What is an example of a unilateral contract: In a unilateral contract only one party is obligated
to perform. The optionor-owner of the property must sell at the agreed-upon price only if the optionee he decides
to buy
, PERRY REAL ESTATE FINAL EXAM PRACTICE QUESTIONS AND ANSWERS
COMPREHENSIVE STUDY MATERIAL
10. A woman is buying a man's house and wants to take over the mortgage.
The lender releases the man from the obligation substituting the woman as
the party liable for the debt. This new agreement is called: Novation
11. A real estate broker in ounces to the sales people in her office that she will
pay $1000 bonus to the top selling sales person each quarter. This contract
is an: The otter of a bonus to the top selling sales person each quarter is an express contract because the broker
clearly stated her intentions and words to the sales people. It is unilateral contract because she's obligated to keep
her promise but the sales people are not obligated to perform
12. A testamentary trust is created by: A will
13. In any Township what is the number of the section designated as the school
section: 16
14. Lonnie conveys the ownership of his house to his mother and stipulates
that upon her death he will recapture ownership. The interest Lonnie has in
the property is a: reversionary interest
15. If a creator of a life estate chooses not to name my remainderman the
creator has: The property will revert back to the creator
16. A descendent left a will giving his neighbor the right to use a well on the
descendents land as long as the neighbor lived. The neighbors interest in the
property is properly called: An easement in gross is an individual interest in someone else's land
17. A lawsuit to terminate an easement is called an action to: Action to quiet title
18. If an adjacent public land use diminishes the value of your property you
may claim compensation under which theory: Inverse condemnation
19. The process by which government can acquire ownership of private land
for public use is: Condemnation
20. A partnership which is for a long-term arrangement is called: Syndicate
21. This is a special type of zoning used to control density by imposing restric-
tion such as setbacks: Bulk zoning
22. A manufactured home can be turned into real estate by what process: AFFIX-
ATION
23. A developer grants a local power company the right to install necessary
transmission lines. This right is an example of a: Easement in gross
24. The beneficiary of a land trust is also commonly: The trustor
