Legal Quiz (August 2021)
BY WILL MARTIN, GENERAL COUNSEL
1. Under the Offer to Purchase and Contract (Form 2-T), if a party fails to perform a contractual obligation prior to closing, that obligation remains binding on them after closing. True or False?
2. If the parties have signed an Offer to Purchase and Contract, but the Settlement Date has been left blank, the contract is not enforceable under any circumstances. True or False?
3. If an offer made on Form 2-T includes an Additional Earnest Money Deposit, but there is no Initial Earnest Money Deposit, it is a valid offer. True or False?
4. It is a violation of the real estate license law for a broker to sell their own property to a buyer if the buyer isn’t represented by another broker. True or False?
5. A broker may present offers on the same property on behalf of multiple buyers whom the broker represents under the Exclusive Buyer Agency Agreement (Form 201). True or False?
6. A landowner may be held liable if they change the flow of surface water across their property and it causes damage to others. True or False?
7. The Offer to Purchase and Contract—Vacant Lot/Land (Form 12-T) may not be used if the buyer is interested in subdividing the property after the buyer closes on it. True or False?
8. A listing agent could be disciplined for failing to disclose the existence of multiple appraisals of the property that have been below the contract price. True or False?
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