#1
Which document outlines the terms and conditions of a real estate transaction?
Blueprint
Contract
Appraisal
Deed
#2
What does the term 'contingency' mean in a real estate contract?
A clause that makes the contract void if certain conditions are not met
The final closing date
The initial negotiation stage
The transfer of ownership
#3
What does the term 'fiduciary duty' mean in the context of real estate transactions?
A legal obligation to disclose material facts about the property
A duty to act in the best interest of the client
The transfer of property ownership
A contractual obligation to make timely payments
#4
What is the significance of the 'option period' in a real estate contract?
The time frame for obtaining mortgage approval
A period during which the buyer has the unrestricted right to terminate the contract
The final closing date
A time frame for property inspections
#5
What does the term 'escrow account' refer to in a real estate transaction?
A separate account where the buyer places the down payment
An account held by a neutral third party to handle funds and documents during the transaction
A type of mortgage account
A financial reserve for property maintenance
#6
What is the legal age for entering into a real estate contract in most jurisdictions?
16 years
18 years
21 years
20 years
#7
In real estate, what does the term 'earnest money' refer to?
Money paid to a real estate agent
Down payment on a mortgage
Initial deposit to show serious intent
Insurance fee
#8
In a real estate contract, what does 'time is of the essence' signify?
The importance of punctuality in property showings
Strict adherence to specified timelines
Flexibility in contract deadlines
Time-based payment schedule
#9
What is the primary purpose of a 'title search' in a real estate transaction?
To verify the buyer's financial history
To ensure the property has a clear title
To determine the property's market value
To negotiate closing costs
#10
What is a 'deed' in a real estate transaction?
A document transferring ownership of a property
A legal agreement between the buyer and seller
A type of mortgage
An inspection report
#11
What does 'proration' involve in a real estate closing?
Distributing expenses, such as property taxes, between the buyer and seller
Determining the property's market value
Negotiating the final sale price
Transferring ownership of personal property
#12
What is the purpose of the 'due diligence' period in a real estate contract?
To negotiate the final price
To inspect the property and review documents
To finalize the financing terms
To transfer ownership
#13
Which type of real estate contract is characterized by fixed monthly payments and eventual ownership transfer?
Lease agreement
Option contract
Rent-to-own contract
Listing agreement
#14
In real estate, what does the term 'escrow' refer to?
The finalization of property transfer
A neutral third party holding funds and documents during a transaction
A type of mortgage
The legal process of property acquisition
#15
What is a 'liquidated damages' clause in a real estate contract?
An agreement to exchange property for cash
A provision specifying a predetermined amount to be paid in case of a breach
A clause allowing either party to cancel the contract without consequences
A negotiation tactic to lower the purchase price
#16
What is the purpose of the 'right of first refusal' in a real estate contract?
Allowing the seller to back out of the deal
Giving the buyer the option to purchase the property before it's offered to others
Determining the property's appraised value
Setting the closing date
#17
What does the 'Covenant of Quiet Enjoyment' guarantee in a real estate contract?
The absence of noisy neighbors
The buyer's right to undisturbed use and enjoyment of the property
A specific timeline for property showings
An agreement to maintain peace and quiet during the transaction