Module 4: Hawaii Pre-Licensing Real
Estate Exam Already Passed
Which of the following best represents rescission of a contract?
A) Option to purchase can be transferred by a lessee to a lessor
B) Lease was terminated with the mutual agreement of both parties
C) One of the parties can change the contract at a later date
D) Offer to buy ✔✔B) Lease was terminated with the mutual agreement of both parties
An offer, where no earnest money or deposit is given with the contract, is valid.
A) True
B) False ✔✔True. Deposits are not an indication of valuable consideration. There could be no
money down and be a valid contract although the seller may question the sincerity of the offer
with nothing down.
After signing a contract for the sale of real estate, a deed can be given to a buyer or third party
designated as the:
A) Principal
B) Assignee
,C) Grantor
D) Escrow agent ✔✔B) Assignee
The assignor is still liable for the consummation of the contract if the assignee defaults on the
purchase.
An agent is considered to have earned his commission when the:
A) Listing contract is signed by the seller
B) Title insurance policy is delivered to the buyer
C) Title search is completed and title is recorded
D) Purchase agreement is signed and all the conditions are satisfied ✔✔D) Purchase agreement
is signed and all the conditions are satisfied
5) A "Power of Attorney":
A) Must be in writing
B) Is revoked by the death of either party
C) Both of the above
D) None of the above ✔✔C) Both of the above
, A salesperson, with full knowledge, writes deceptive information in a sales contract. One of the
parties to the contract acts on the information provided and incurs damages. The action of the
salesperson constitutes:
A) Undue influence
B) Duress
C) Breach of contract
D) Misrepresentation or fraud ✔✔D) Misrepresentation or fraud
A real estate sales contract that binds one party but allows the other party to withdraw is:
A) A land contract
B) An installment contract
C) A voidable contract
D) A void contract ✔✔C) A voidable contract
The contract can be voided by the party that is lied to but not by the party that lied.
Which is true regarding a buyer's earnest money deposit and offer to purchase?
A) They may demand full repayment if they withdraw the offer prior to the seller's acceptance
Estate Exam Already Passed
Which of the following best represents rescission of a contract?
A) Option to purchase can be transferred by a lessee to a lessor
B) Lease was terminated with the mutual agreement of both parties
C) One of the parties can change the contract at a later date
D) Offer to buy ✔✔B) Lease was terminated with the mutual agreement of both parties
An offer, where no earnest money or deposit is given with the contract, is valid.
A) True
B) False ✔✔True. Deposits are not an indication of valuable consideration. There could be no
money down and be a valid contract although the seller may question the sincerity of the offer
with nothing down.
After signing a contract for the sale of real estate, a deed can be given to a buyer or third party
designated as the:
A) Principal
B) Assignee
,C) Grantor
D) Escrow agent ✔✔B) Assignee
The assignor is still liable for the consummation of the contract if the assignee defaults on the
purchase.
An agent is considered to have earned his commission when the:
A) Listing contract is signed by the seller
B) Title insurance policy is delivered to the buyer
C) Title search is completed and title is recorded
D) Purchase agreement is signed and all the conditions are satisfied ✔✔D) Purchase agreement
is signed and all the conditions are satisfied
5) A "Power of Attorney":
A) Must be in writing
B) Is revoked by the death of either party
C) Both of the above
D) None of the above ✔✔C) Both of the above
, A salesperson, with full knowledge, writes deceptive information in a sales contract. One of the
parties to the contract acts on the information provided and incurs damages. The action of the
salesperson constitutes:
A) Undue influence
B) Duress
C) Breach of contract
D) Misrepresentation or fraud ✔✔D) Misrepresentation or fraud
A real estate sales contract that binds one party but allows the other party to withdraw is:
A) A land contract
B) An installment contract
C) A voidable contract
D) A void contract ✔✔C) A voidable contract
The contract can be voided by the party that is lied to but not by the party that lied.
Which is true regarding a buyer's earnest money deposit and offer to purchase?
A) They may demand full repayment if they withdraw the offer prior to the seller's acceptance
