Promulgated Contract Forms (Champions) Exam Latest Update 2024-2025 Questions and Verified Correct Answers Guaranteed A+
acceptance - CORRECT ANSWER: means that the accepting party does so with no
change to the contract whatsoever
addenda - CORRECT ANSWER: an attachment that adds or further describes the
rights and duties of the parties
addendum for sale of other property by buyer - CORRECT ANSWER: used when there
is a contingency
agricultural use exemption - CORRECT ANSWER: method for evaluating tax burden of properties used for agriculture
amendment - CORRECT ANSWER: changes to the contract; common ones include
changes to the closing date, changes to the sales price, down payment or amount finances, repairs the the seller agrees to perform, removal or waiver of contingencies
assignment - CORRECT ANSWER: transfers all of the rights related to the contract to another party known as assignee
bilateral contract - CORRECT ANSWER: a contract of sale between a buyer and seller
Broker-Lawyer committee - CORRECT ANSWER: 13 members; write residential
contract forms that are generally mandatory for license holders
Buyer's or Seller's Temporary Residential Lease - CORRECT ANSWER: for no more
than 90 days
buyer's termination form - CORRECT ANSWER: used to notify the seller of a buyer- initiated contract termination
certificate of reasonable value - CORRECT ANSWER: required to get VA guaranteed
financing
chunking - CORRECT ANSWER: occurs when a fraudster promises to show investors
how to get rich by investing in the real estate market
churning - CORRECT ANSWER: excessive selling/lending activity for the purpose of generating fees and commissions
communication - CORRECT ANSWER: also referred to as notification
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condominium resale certificate - CORRECT ANSWER: prepared by management of a
condo project
consumer information form - CORRECT ANSWER: should be displayed prominently at
broker's office
counteroffer - CORRECT ANSWER: a rejection of the original offer coupled with a new offer
default - CORRECT ANSWER: failure to meet a contractual obligation
elements of a valid and enforceable contract - CORRECT ANSWER: COLIC
(competent parties, offer and acceptance, legal purpose, in writing, consideration)
endorsement - CORRECT ANSWER: change made to a standard insurance policy
escrow - CORRECT ANSWER: funds held by a third party until performance of a
contract
executory contract - CORRECT ANSWER: a contract that is binding on the parties,
with one or more of the parties having contractual duties that have not yet been performed
farm and ranch contract - CORRECT ANSWER: contains provisions for surface leases related to a property
imputed notice - CORRECT ANSWER: under this concept, an offer is presumed to
have been delivered to the principal when it is delivered to the agent
in a Farm and Ranch sale, buyer receives the following: - CORRECT ANSWER: windmills, tanks, pens (NOT trucks)
mutual consent - CORRECT ANSWER: a "meeting of the minds"
net sheet - CORRECT ANSWER: an estimate of the net proceeds to the seller and
should be prepared based upon the offer being considered
non-realty items addendum - CORRECT ANSWER: used when personal property is to
be included in a sale
novation - CORRECT ANSWER: when a new contract is substituted fro an existing one
offer must be presented... - CORRECT ANSWER: phone, fax, email, letter, hand
delivery
offeror - CORRECT ANSWER: the party making the offer
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