Exam (elaborations)
WRA Chapter 10 Questions with verified solutions | Already Passed
- Course
- Institution
WRA Chapter 10 Questions with verified solutions | Already Passed
[Show more]
Content preview
WRA Chapter 10 Questions withverified solutions | Already Passed
A licensee drafting a personal offer as a principal on a property. The licensee will strike all of the agency
language on Lines 1-2 of the WB-11 Residential Offer to Purchase. ✔✔True
Explanation:
A licensee drafting a personal offer is acting as a principal and not an agent. The licensee would strike
the agency language on Lines 1-2 of the Offer.
A buyer may withdraw an offer prior to binding acceptance. ✔✔True
Explanation:
Review line 30 of the WB-11 Residential Offer to Purchase.
A sidewalk special assessment was levied after the date after the offer. Buyer will pay this special
assessment. ✔✔True
Explanation:
,Review lines 360-362 of the WB-11 Residential Offer to Purchase. A seller is responsible for special
assessments levied or for work actually commenced prior to the date of offer. A buyer is responsible for
all other special assessments. The division for responsibility for these costs depends on the date of the
offer, not acceptance or binding acceptance.
A listing licensee may disclose that there is an accepted offer with a home inspection contingency on
a property. ✔✔False
Explanation:
Licensees can disclose that another party holds a right of first refusal on a property, that a seller has
accepted an offer, or accepted an offer with contingencies. A licensee can also disclose that a seller has
accepted an offer contingent on the closing of buyer's property contingency (a "bump clause") but the
licensee cannot disclose the terms of the bump clause or any other contingency terms.
Licensees may withhold any offers from presentation pending the seller's actions on
previously presented offers. ✔✔False
Explanation:
A licensee must present all offers to the seller in an objective and unbiased manner, discussing the
advantages and disadvantages of each offer, so the seller has all the material facts the seller needs
to make a decision.
Guaranteed sales are legal. ✔✔True
Explanation:
,A guaranteed sale is a service offered by some brokers in which the firm agrees to pay the owner of a
listed property a predetermined price if the property is not sold within the term of the listing
contract.
In the offer, the buyer agrees to give the seller $2,000 of earnest money four days after acceptance
and time is not of the essence. Buyer does not pay the seller the $2,000 earnest money four days after
acceptance. Buyer is in breach of the contract. ✔✔False
Explanation:
In the buyer's offer, time is not of the essence. The buyer must pay the earnest money within
a reasonable time.
The purchase price of a property is $100,000. The property has been damaged in the amount of
$6,000. The buyer has the right to cancel the contract. ✔✔True
Explanation:
Review lines 206-215 of the WB-11 Residential Offer to Purchase.
The seller is free to choose from all accepted secondary offers when it is time to give a secondary
buyer notice that his or her offer has become primary. ✔✔True
Explanation:
Sellers do not assign priority to secondary offers and can choose to elevate any accepted
secondary offer.
A contract for sale should include the parties' full legal names. ✔✔True
, Explanation:
Contracts must identify the parties to the contract.
A court will construe a contract drafted by the buyer's licensee more strictly against the buyer. ✔✔True
Explanation:
When a contract contains an ambiguous term, the court will interpret the contract more strictly against
the drafter.
A listing agent who has knowledge of a right of first refusal on the seller's property must disclose the
right of first refusal in writing to the buyer prior to delivering a copy of the buyer's offer to the person
holding the right of first refusal. ✔✔True
Explanation:
A right of first refusal is treated like a material adverse fact and it must be disclosed in writing to
all parties
A licensee wants to write an offer as a principal for a property listed with another firm. Can the licensee
receive a commission if the seller accepts the licensee's offer? If not, can the licensee ask the seller to
pay an incentive equal to the commission the licensee would have received on the sale? ✔✔When
acting as a buyer of real estate, a licensee is a principal in the transaction and not acting as an agent. A
licensee cannot collect a commission from a seller because a licensee cannot perform services on behalf
of the seller with undivided loyalty. A licensee can negotiate an incentive to be paid by the listing firm or
the seller. This incentive can be for the amount of the cooperating firm commission that would
otherwise be paid to the selling firm in the transaction.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Examsplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now