Question 18 of 72 Score 1 of possible 1 point A buyer of a house placed 30000

Question 18 of 72 score 1 of possible 1 point a buyer

This preview shows page 11 - 16 out of 46 pages.

Question 18 of 72 Score: 1 (of possible 1 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
Image of page 11
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: C Feedback Question 19 of 72 Score: 1 (of possible 1 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: D Feedback Question 20 of 72 Score: 1 (of possible 1 point)
Image of page 12
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: D Feedback Question 21 of 72 Score: 1 (of possible 1 point) The parties must separately initial the appropriate paragraph if they agree to which form of dispute resolution? Answer Key: B Feedback
Image of page 13
Question 22 of 72 Score: 1 (of possible 1 point) A seller wants to clarify that the washer and dryer will not be taken with him when he vacates the property. This would be disclosed in the B. included items paragraph C. bulk transfer notice D. seller financing disclosure statement Answer Key: B Feedback Question 23 of 72 Score: 1 (of possible 1 point) If a house was built prior to ____, the sellers must disclose information about lead-based paint to prospective buyers A. 1968 B. 1985 C. 1960 D. 1978
Image of page 14
Answer Key: D Feedback Explanation: Houses built before 1978 are subject to federal lead-based paint disclosure laws.
Image of page 15
Image of page 16

You've reached the end of your free preview.

Want to read all 46 pages?

  • Fall '17
  • Janet Truscott

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture