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Question 18 of 72 Score: 1 (of possible1 point)A buyer of a house placed $30,000 into escrow toward a purchase price of $240,000. The buyer breached the contract and demanded return of his deposit. However, there is a liquidated damages clause in the purchase agreement, for the maximum amount allowed by law in California. How much should the buyer receive as a refund?A. $7,200B.$8,100C.$22,800
D. $37,200E.$0Explanation: The maximum amount of liquidated damages allowed in a residential transaction in California is 3%. Three percent of $240,000 is $7,200. The buyer already has $30,000 on deposit, so subtract $7,200 from $30,000 to find how much will be returned to the buyer ($30,000 - $7,200 = $22,800)Answer Key: CFeedbackQuestion 19 of 72 Score: 1 (of possible1 point)The seller elects not to initial the liquidated damages paragraph so as not to limit her choice of remedies. If the buyer defaults on the transaction, which of the following would be a remedy that the seller could choose to pursue?Answer Key: DFeedbackQuestion 20 of 72 Score: 1 (of possible1 point)
The closing date is approaching but the buyers are still waiting for the loan to be approved. What would be the appropriate response to this problem?Answer Key: DFeedbackQuestion 21 of 72 Score: 1 (of possible1 point)The parties must separately initial the appropriate paragraph if they agree to which form of dispute resolution?Answer Key: BFeedback
Question 22 of 72 Score: 1 (of possible1 point)A seller wants to clarify that the washer and dryer will not be taken with him when he vacates theproperty. This would be disclosed in theB.included items paragraphC.bulk transfer noticeD.seller financing disclosure statementAnswer Key: BFeedbackQuestion 23 of 72 Score: 1 (of possible1 point)If a house was built prior to ____, the sellers must disclose information about lead-based paint to prospective buyersA. 1968B.1985C.1960D. 1978
Answer Key: DFeedbackExplanation: Houses built before 1978 are subject to federal lead-based paint disclosure laws.