resnFrom Offer to Contract to Closing.pptx

Real Estate School of Nevada
CE.7014000-RE
3 hours – Contracts
©Copyright 2021 Real Estate School of Nevada. All Rights Reserved. 1

Housekeeping
 No phones or texting during the class.
 Please make sure that you sign in.
 Restrooms
 Direct attention to instructor.
 Refrain from distracting activities.
 Breaks
 Instructor Evaluations
 Attendance sign out
 Certificates of Completion

• A contract is a voluntary agreement between informed and
capable parties to do, or to refrain from doing, something
which is legal to do, and which is supported by adequate
consideration.
• Common Real Estate Contracts:
• Residential Purchase Agreements
• Listing Contract
• Buyer Brokerage Agreements
• Leases
• Property Management Agreements
• This course focuses on Purchase Agreements
Contract Basics

• Five essential elements of a contract (any contract):
• Competent Parties – All parties must be living, of lawful age, of
sound mind, and mentally competent.
• Offer and Acceptance – Sometimes referred to as “mutual
assent,” this element shows there is a “meeting of the minds,”
that an offer was made and acceptance of that offer was
reached.
• Legal; Legality of Object – The purpose underlying the
contract must be legal.
• Informed Parties — There can be no fraud, no
misrepresentation, and no duress. The parties are fully
informed, aware of the conditions of the agreement, and consent
to the terms.
• Consideration – Consideration may be money, anything of
value, or just a statement that consideration exists, such as "for
continued love and affection" or "for good and valuable
consideration."
Contract Basics

• Contracts for real estate have five additional elements
(requirements):
1. In writing
• Statue of Frauds requires real estate contracts to be in
writing to be enforceable in court
• Not a requirement to be “valid”
2. Requires an Adequate Description (i.e. Address or A.P.N)
3. Names of Principals
4. Signatures of Principals
5. Term of the Contract
Contract Basics

• Legal concepts with real estate contracts
• Valid – The contract contains visible evidence of all five
essential elements of a contract (competent parties, offer and
acceptance, legality of object, informed parties, and
consideration) and is therefore binding and enforceable on all
parties.
• Void – This agreement lacks any one or more of the essential
elements of a contract and has no legal effect. It is not binding
on the parties.
Contract Basics

• Legal concepts with real estate contracts
• Voidable – appears to be valid but may be disaffirmed because
it is missing competent parties (legal capacity) such as a minor,
or is missing voluntary, informed parties such as a contract
executed under misrepresentation, fraud, or duress. In a
voidable contract, the party suffering the legal disability has the
right to void the contract, provided it is done within a reasonable
time. The other party to the contract, the one who does not
suffer a legal disability, does not have the right of voidability.
• Unenforceable – appears to be valid, but if there is a
disagreement between the parties in the performance of duties
and the receipt of rights, the courts will not get involved in a
resolution.
Contract Basics

• The contract process:
• Normally, the contracting process in real estate starts with the
buyer making the seller an offer, but
• the original could conceivably come from the seller.
• To keep it clear, the proper way to refer to the parties during the
offer process is to refer to them as offeror and offeree.
• Offeror – the party making the offer
• Offeree – the party receiving the offer
Contract Basics

• Once the offer is received, the offeree may:
• Accept – An acceptance must agree to every detail of the offer
as submitted no matter how small.
• Counteroffer – If there is any change, no matter how small or
large, is made to the offer, the offeree has not accepted, but has
made a counteroffer. A counteroffer rejects the offer as written,
but modifies what terms and conditions must be changed to
make the offer acceptable.
• Reject – The offeree may simply say “No,” and by doing so, has
rejected the offer, without counteroffering. An offeree should
beware that a rejection does not obligate the offeror to do
anything whatsoever.
• Do nothing –However, after a “reasonable time,” or a date
specified in the offer, if the offeree remains silent, the offeror’s
agent must inform the offeror that the offer is now treated as a
rejection. There is no requirement that the offeror keep the offer
open until the time limit expires. It may be withdrawn at any time
prior to acceptance.
Contract Basics

• Once the offer is received, the offeree may:
• Withdrawal or revocation – After an offer is made, the offeror
may withdraw the offer any time up to receiving notice of the
offeree’s acceptance. This notice of acceptance may be oral
and given to the offeror directly or through his agent. Once
notice of acceptance has been received, the offeror may not
withdraw the offer.
• An offer becomes a contract when the offer has been accepted by
the offeree and communication of that acceptance has been received
by the offeror.
Contract Basics

• Option contracts
• Option contracts are between the owner of the property, the
optionor, and a purchaser who wants to have a period of time in
which to decide on the purchase of the property, the optionee.
• This is a unilateral contract in that the optionor has no
obligation to perform until and unless the optionee decides to
purchase. At that time, the optionor would complete the sale of
the property to the optionee.
• The optionee must offer option money, better described as the
agreed valuable consideration, in exchange for the option to
purchase or not to purchase.
• If an option fee is paid, it should be clear how the fee paid will be
applicable to the purchase price if the option is exercised and if
the fee is forfeited if the option is passed over. The option
contract will have all of the same terms and conditions as a
typical purchase agreement. It should also be clear as to the
length of time the option runs for, and what conditions, if any,
might allow an extension of the option.
Contract Basics

• Right of first refusal
• The holder of the right of first refusal has the right to match any
offer made on a property.
• If a party is trying to sell a property and it is subject to a right of
first refusal, the seller must fully negotiate a transaction with a
prospective buyer, and before completing the contract, must
contact the holder of the right of first refusal and provide an
opportunity to match the transaction and exercise the right.
• The existence of a right of first refusal is a material fact which
must be disclosed. Presumably any informed prospective buyer
would want the seller to remove the right of first refusal before
negotiating a sale as the purchaser would in effect be
negotiating for the other party.
Contract Basics

• Time is of the essence
• This phrase is often seen in real estate and other contracts.
• Simply put, it means that if a specific time period is set out in the
contract, in which one of the parties is to do something, and they
have not done it when the allotted period of time expires, the
other party may declare a breach.
• Example: The buyers have agreed to make application for a
new loan within 10 days of signing the contract. The 11th day
comes and they have not applied; the seller now has the right to
declare the buyers in breach of the contract.
• Contingency – a clause written into a contract stating some event
must be completed before all of the duties of the contract can be or
will be performed. Contingencies include new loan approval, sale of
current residence, inspections to be conducted, etc. If the
contingency is not fulfilled or waived, the contract is voidable.
Contract Basics

NAC 645.630 Prompt tender of offers. A licensee shall promptly
deliver:
1. To the seller, every bona fide offer, complete with all terms and
conditions of purchase, which he or she obtains.
2. To the purchaser and seller, copies of each acceptance of an
offer or counteroffer.
Presentation of Offers

NRS 645.635 Additional grounds for disciplinary action:
Unprofessional and improper conduct relating to real estate
transactions. The Commission may take action pursuant to NRS
645.630 against any person subject to that section who is guilty of:
3. Failure to deliver within a reasonable time a completed copy of
any purchase agreement or offer to buy or sell real estate to the
purchaser or to the seller, except as otherwise provided in subsection 4
of NRS 645.254 (duties of licensees).
7. Failure to reduce a bona fide offer to writing where a proposed
purchaser requests that it be submitted in writing, except as otherwise
provided in subsection 4 of NRS 645.254.
8. Failure to submit all written bona fide offers to a seller when the
offers are received before the seller accepts an offer in writing and until
the broker has knowledge of that acceptance, except as otherwise
provided in subsection 4 of NRS 645.254.

©Copyright 2021 Real Estate School of Nevada. All Rights Reserved.
16
• Acknowledging the Offer
• Seller’s initials acknowledges that the offer has been presented
• Seller’s signature and correct option marked acknowledges
• Acceptance
• Counter Offer
• Rejection
• Seller to respond with one of the above options by the deadline
written into the contract by buyer or the offer will be of no further
force or effect (buyer not obligated, may rescind offer with no
penalty)
• Check with your Broker for office policies for non-response from
seller
• Broker may contact other Broker
• Make sure attempts to present are well documented. Broker
may advise you to report non acknowledgement to the Division.
Keep records of phone, fax, registered mail attempts to contact
all parties.

• Form 636: Waiver Form
• licensees must "present all offers made to or
by the client as soon as practicable."
• This duty may be waived by the client.
• "Presenting all offers" includes without
limitation: accepting delivery of and conveying
offers and counteroffers; answering a client's
questions regarding offers and counteroffers;
and assisting a client in preparing,
communicating and negotiating offers and
counteroffers.
• In order to waive the duty, the client must enter
into a written agreement waiving the licensee's
obligation to perform the duty to present all
offers.
• Must be signed by client, licensee, and broker

Counter offers and Addendums
 Counter Offers must also be presented, acknowledged, and
accepted or rejected as well.
NAC 645.632 Notification of rejection of offer or counteroffer.
1. If a licensee represents a seller in a transaction, and if the seller does
not accept an offer within a reasonable time after an offer has been
presented to the seller, the licensee shall provide to the buyer or the
representative of the buyer written notice signed by the seller which informs
the buyer that the offer has not been accepted by the seller.
2. If a licensee represents a buyer in a transaction, and if the buyer does
not accept a counteroffer within a reasonable time after a counteroffer has
been presented to the buyer, the licensee shall provide to the seller or the
representative of the seller written notice signed by the buyer which informs
the seller that the counteroffer has not been accepted by the buyer.
(Added to NAC by Real Estate Adv. Comm’n, eff. 8-21-81; A by Real
Estate Comm’n by R186-99, 1-21-2000)

Counter offers and Addendums
ADDENDUMS
(AMENDMENTS)
COUNTER OFFERS
AFTER acceptance BEFORE acceptance
Do not disturb the contract Cancel original offer until the
terms of the counter offer are
accepted
Clean-up details Change details
Clarify already accepted terms Change terms
Need to come to an agreement
because contract is in effect or
nothing gets changed
If one party doesn’t want to
agree to terms of counter-offer
no contract is in effect.
Other offers may only be held
as back-up offers since
amendments are used AFTER
offer acceptance
Until notification of acceptance,
other offers may be considered

Multiple Offers
 When Are Multiple Offers Likely To Occur?
 Low inventory and high demand
 Priced under market value
 Any exceptional property
 High-demand location
 Exceptional terms
 Condition of property

Multiple Offers
 Seller decisions:
 accept one offer in writing, and reject all other offers in writing
 reject all offers in writing and encourage higher offers
 counter one offer, reject other offers in writing
 Delay the decision waiting for another offer informing all parties,
Educate the seller that with this option the buyers may withdraw
their offer.
 For the buyers:
 Alert all buyers that they are in a competing offer and submit best
offer
 Counter all offers in writing

Multiple Offers
Seller:
Advantages:
• Higher sales price
• Choice of closing date
• More in line with terms that they
were looking for
Disadvantages:
• Higher sales price might be
above what property will
appraise for
• May loose viable buyer if the
buyer gets nervous about
submitting an offer if there are
already multiple offers
• Buyers may submit offers on
multiple properties to counter-
act multiple offers
Buyer:
Advantages:
• Alerts them to the need of
submitting their highest and
best offer the first time
• May eliminate prolonged back
and forth with counter offers
Disadvantages:
• May be bid out of being able
to afford the house
• May be bid out of a sales
price that will be supported by
an appraisal, thereby making
them not an “able” buyer

Multiple Offers
 Presenting Multiple Offers to the Seller: Considerations
 net sheets for each offer indicating the bottom line for each offer
 amount down/loan preapproval
 closing date
 other considerations:
 home warranty required?
 who pays for appraisal, etc.?
 personal property to be left behind?

Multiple Offers
 Procedural matters:
 Notify agents of the seller’s choice of offers.
 Send back initialed, signed offers, and thanks to agents.
 Keep offers which were not selected on file in case the selected
offer does not close for future contact and per NRS.645
 Keep good records of notifications and offers.

• Performance – This is the most desirable outcome. The parties
perform all of their duties and receive all of their rights as agreed.
• Mutual agreement – The parties decide they do not want to go
forward and mutually agree that each should be released from the
contract. By mutual agreement, the contract is terminated. This is
sometimes called a General and Mutual Release.
• Impossibility – If it is truly impossible for the parties to perform, the
contract will be terminated by impossibility. As an example, if there is
a contract with the homeowner and a painter hired to paint the
house, and the house burns to the ground, impossibility will terminate
this contract.
Terminating Contracts

• Operation of law – Some contracts will be terminated by the courts
or statutory prohibition. Let us assume that an Iowa corporation has
a contract to sell corn to Mexico. Before the terms of the contract are
performed, the U.S. government prohibits further exports to Mexico
for agricultural purposes. Since it would be illegal for the Iowa
corporation to carry out the terms of the contract due to the newly-
passed law, the contract would be terminated by operation of law.
• Destruction of Property
• Death*

*Breach of contract – What if either of the parties to a contract fails or
refuses to perform any duties per the contract? This is considered
breach of contract and the injured party has legal remedies available.
Doesn’t end contract, but Broker can let contract expire or withdraw the
offer per withdrawal form.
If the buyer defaults, the seller may rescind (terminate) the agreement
and exercise any of these options:
• Sue for specific performance – This legal action will require the
buyer to perform all duties as specified in the contract.
• Revocation – The seller revokes the contact and retains the earnest
money deposit.

If the buyer defaults, the seller may rescind (terminate) the
agreement and exercise any of these options:
• Rescission – The seller decides to call off the contract and return
the earnest money deposit to the buyer. This is a complete reversal
of the contract, putting everyone back to where they were before the
contract. – “Addendum”
• Sue for damages – The buyer is required to pay the seller for any
costs associated with the seller’s hardship. The seller may possibly
sue for the amount of the purchase price.

If the seller defaults, the buyer may rescind (terminate) the agreement
and exercise these options:
• Sue for specific performance – This legal action will require the
seller to perform all duties as specified in the contract including going
through with the sale and transferring ownership.
• Rescission – The buyer decides just to call the whole thing off, get
back the earnest money deposit, and be done with it. This is a
complete reversal of the contract, putting the parties back to where
they were before the contract.
• Sue for damages – If the buyer can prove there were direct
monetary damages as a result of the seller’s breach, then the buyer
may be entitled to a judgment against the seller for the amount of
damages proved. This is quite difficult to do in residential real estate
cases.

• Liquidated damages – The remedies either party may recover
through litigation may be limited by the terms of the contract. If the
contract pre-addresses the damages that may be received in the
event of default, those remedies are considered to be “liquidated
damages.”
• Punitive damages – go above and beyond the liquidated damages
and may be sought to “punish” the breaching party and compensate
the injured party.
• Statute of limitations – There is a legal limit to the time frame under
which the injured party can legally sue the breaching party and this
limit varies from state to state.

Contract Scenarios
 These next several slides present everyday scenarios that arise in real
estate transactions.
 We pose a question the buyer or seller would ask and challenge you
to think of the response you would make before you see ours.

Contract Scenarios
 I agreed to buy a house and now I’ve changed my mind. How do I
cancel the contract?
 What would your response be?

Contract Scenarios
 I agreed to buy a house and now I’ve changed my mind. How do I
cancel the contract?
 The contract must be reviewed to determine the conditions under
which it may be canceled.
 Every contract can be canceled, however there may be penalties or
further liability involved.
 If a contingency is not satisfied, the contract can be canceled without
penalty or obligation.
 If the cancelation constitutes a breach of contract, any of the remedies
for breach (covered previously) may be sought.
 Cancelation of the contract may require you to seek the assistance of
an attorney.

Contract Scenarios
 I am selling my house and the buyer now wants to back out. What
can I do to finalize the sale?

Contract Scenarios
 I am selling my house and the buyer now wants to back out. What can I
do to finalize the sale?
 No one can force a buyer to close, however there are legal remedies
available to sellers when this occurs. These remedies include:
 Suit for Specific Performance
 Seek the Earnest Money
 Sue for Damages
 The services of an attorney may be required to seek these remedies.
 Before these remedies are pursued, every effort should be made to
uncover the reason the buyer wants to back out. It may be easily
resolved.
 Often, buyers get “buyer’s remorse” (cold feet) and this is to be expected.
Discovering the true objection will allow you to
address it.

Contract Scenarios
 My wife and I are under contract to sell our condominium and now we
no longer wish to move. How can we cancel the sale?

Contract Scenarios
 My wife and I are under contract to sell our condominium and now we
no longer wish to move. How can we cancel the sale?
 If a contingency is not satisfied, the contract can be canceled without
penalty or obligation.
 If the cancelation constitutes a breach of contract, the buyer has legal
remedies for breach which include:
 Suit for Specific Performance
 Sue for Damages
 Rescission (cancel contract and return earnest money)
 You may wish to seek legal counsel.

Contract Scenarios
 We purchased the house for $220,000, but it appraised for only
$205,000. What do we do now?

Contract Scenarios
 We purchased the house for $220,000, but it appraised for only
$205,000. What do we do now?
 One of the contract contingencies is that the property must appraise
for the purchase price or higher if a new loan is involved. If it under-
appraises, the contract will specify the options for the parties.
 The contract must be reviewed. These options are typically:
 The seller can lower the price to the appraised amount.
 The buyer can pay the difference in cash.
 The parties can meet somewhere in the middle.
 The parties can agree to a rescission.
 There is a possibility the contract does not contain such a contingency
in a cash sale.

Contract Scenarios
 We are scheduled to close on Friday, but the seller refuses to move
out. What do we do?

Contract Scenarios
 We are scheduled to close on Friday, but the seller refuses to move
out on time. What do we do?
 It should first be determined why they won’t move on time as well as if
they intend to close at all.
 Is it that they can’t close, or won’t close?
 Addressing their refusal to move or close on time may require further
negotiations.
 It may be necessary to renegotiate the close of escrow and prepare an
addendum.
 You cannot force the sellers to close on time nor to close at all.
 Review your remedies for breach as per the contract.
 You may need to seek legal counsel.

Contract Scenarios
 We need to close on our current home to get the cash to close on our
new home. Now it looks like our buyers aren’t going to qualify. What
do we do?

Contract Scenarios
 We need to close on our current home to get the cash to close on our
new home. Now it looks like our buyers aren’t going to qualify. What
do we do?
 The contract for the house you are buying must be reviewed.
 Is the contract contingent upon the sale of your current property?
 If so, you may be able to cancel without penalty as it is a contingency
that was not satisfied. If not, the seller may seek remedies for breach
if you do not close.
 If your purchase contains a contingency to obtain financing, this might
be grounds for loan denial.
 You may need to seek the advice of an attorney.

Contract Scenarios
 When we saw the house, we noticed the nice lighting fixture in the
foyer. Now at the walk through, we see the light was replaced with a
cheap fixture. Are we entitled to the light fixture that was there
previously?

Contract Scenarios
 When we saw the house, we noticed the nice lighting fixture in the
foyer. Now at the walk through, we see the light was replaced with a
cheap fixture. Are we entitled to the light fixture that was there
previously?
 Perhaps. The contract has to be reviewed.
 Was the foyer light fixture specifically addressed?
 The contract should specify fixtures and personal property that are
included in the sale such as “All EXISTING fixtures and fittings
including, but not limited to: electrical, mechanical, lighting, plumbing,
and heating fixtures.”
 “Existing” is interpreted as that which was there at time of contract.
 The foyer light is a “fixture” and should be included.

Contract Scenarios
 Our home inspections are complete and there are an estimated
$2,500 worth of damages. Will the seller take care of all this?

Contract Scenarios
 Our home inspections are complete and there are an estimated $2,500
worth of damages. Will the seller take care of all this?
 Maybe. Maybe not.
 The contract establishes the seller’s liability for repairs.
 This is usually capped at a negotiated dollar amount.
 “Seller agrees to pay a maximum amount of $_____ to correct defects
and/or requirements disclosed by inspection reports, appraisals, and/or
certifications.”
 Not everything listed in a home inspection is required to be repaired by
the seller. Typically, only “functional” issues apply.
 As the buyer, you may have the right to cancel without penalty if the
repairs are not to your satisfaction.
 The seller might agree to make all repairs, or provide you a cash
allowance, in order to close the transaction.

Contract Scenarios
 Our buyers were supposed to make loan application within 5 business
days of acceptance. It’s been 2 weeks now and we want to cancel as
we doubt their sincerity. Can we cancel and take the earnest money?

Contract Scenarios
 Our buyers were supposed to make loan application within 5 business
days of acceptance. It’s been 2 weeks now and we want to cancel as
we doubt their sincerity. Can we cancel and take the earnest money?
 Once again, we need to review the contract.
 The GLVAR RPA reads, “If Buyer fails to complete any of these
conditions within the applicable time frame, Seller reserves the right to
terminate this Agreement. In such event, both parties agree to cancel
the escrow and return EMD to Buyer.”
 The bottom line in all these scenarios is that the contract determines
how to proceed when there is an issue between the parties.
 This is why contracts must be through and unambiguous.
 If the contract is ambiguous, the courts usually rule against the
preparer of the contract and the party he/she represents.

Legal Issues in Nevada Regarding Contracts:
 The Nevada Real Estate Division has established
requirements of licensees through statutes and
regulations, including:
 Maintaining Records: Brokers required to maintain transaction
records for at least five (5) years, including offers not accepted or
transactions not completed (NAC 645.650).
 Many licensees are lax when it comes to turning files of rejected
offers over to their Brokers.
 Note that it is a violation of this regulation to fail to do so.

 Another area where Salesmen and Broker-salesman have shown
poor habits is in turning their files in to their Brokers in a timely
manner.
 Nevada regulations require licensees to submit any paperwork to
the Broker within five (5) calendar days.
 If a fine or a punitive by the Division action against the licensee
isn’t attention grabbing enough, be aware that many Brokers are
fining their own agents and in some situations pursuing
termination.

 Why Standardize?
 Prior, there were a number of brokers who adopted their own
purchase agreements.
 There are advantages to broker generated contracts especially for
the protection of the firm’s client or to the firm itself.
 However, many agreements were “slanted,” favoring either the
buyer or the seller depending on whom the firm usually
represented.
 Apparent need to be an expert in everyone else’s contract.

 Led to many brokers either foregoing their own special clauses or
creating addendums to still maintain them
 Their cooperation of the RPA allowed everyone the familiarity of
using the recognized form.
 The RPA has been copyright protected and to have it reproduced
with a broker’s own additions is a violation of copyright laws as well
as board policies without the association’s written consent.

End-of-Course Quiz
 You are now ready to take the end of course quiz.

End-of-Course Quiz
1. A counter-offer negates the original offer.
A. TRUE
B. FALSE

End-of-Course Quiz
2. A licensee must not disclose confidential information for 3
years after the last activity on a transaction.
A. TRUE
B. FALSE

End-of-Course Quiz
3. An earnest money deposit is an essential element of a
contract.
A. TRUE
B. FALSE

End-of-Course Quiz
4. The statute of limitations requires real estate contracts to be
in writing in order to enforceable in court.
A. TRUE
B. FALSE

End-of-Course Quiz
5. In a voidable contract, the party facing the legal disability has
the right to void the agreement.
A. TRUE
B. FALSE

End-of-Course Quiz
6. An offer becomes a contract after acceptance of an offer and
the communication of that acceptance to the offeror.
A. TRUE
B. FALSE

End-of-Course Quiz
7. An option contract is a bilateral contract by nature.
A. TRUE
B. FALSE

End-of-Course Quiz
8. Form 636 waives the seller’s rights to be presented with all
offers.
A. TRUE
B. FALSE

End-of-Course Quiz
9. A buyer receives a counter-offer from the seller on a property
the buyer has submitted a Residential Purchase Agreement. At
this point, the buyer is the “offeror.”
A. TRUE
B. FALSE

End-of-Course Quiz
10. The “offeree” can be a buyer or a seller in a transaction.
A. TRUE
B. FALSE

End-of-Course Quiz
11. 17-year-old Ryan enters into an apartment lease with
Landlord Sam for a 12-month period. Ryan never makes one
rent payment. Sam’s lease with Ryan is “unenforceable.”
A. TRUE
B. FALSE

End-of-Course Quiz
12. An offer can legally be withdrawn by the offeror without
ramification at any time prior to acceptance and delivery of
acceptance.
A. TRUE
B. FALSE

End-of-Course Quiz
13. A broker must keep complete real estate transaction records
for at least 7 years after the date of the closing or the last
activity involving the property.
A. TRUE
B. FALSE

End-of-Course Quiz
14. An associate must submit all listing and sale paperwork to
the broker within 5 calendar days after that paperwork is
executed.
A. TRUE
B. FALSE

End-of-Course Quiz
15. An essential element for any contract to be valid includes
that the contract be in writing and signed.
A. TRUE
B. FALSE

End-of-Course Quiz
16. “Mutual assent” suggests that the parties have a meeting of
the minds and have agreed to all terms and conditions of the
contract.
A. TRUE
B. FALSE

End-of-Course Quiz
17. The assessor’s parcel number is one of the three acceptable
forms of legal descriptions.
A. TRUE
B. FALSE

End-of-Course Quiz
18. In essence, a counteroffer equates to a rejection of the
original offer and the submission of a new offer.
A. TRUE
B. FALSE

End-of-Course Quiz
19. The contract between seller Edwards and buyer Nielsen
requires Nielsen to obtain loan approval within 30 days of
acceptance or the contract becomes voidable. This is an
example of both a contingency and time is of the essence.
A. TRUE
B. FALSE

End-of-Course Quiz
20. A primary distinction between an addendum and a
counteroffer is whether the new terms are prior to or after the
execution of the contract.
A. TRUE
B. FALSE

End-of-Course Quiz
21. Multiple offers are commonly seen in a buyer’s market
where home inventories are substantial.
A. TRUE
B. FALSE

End-of-Course Quiz
22. The concept of “suit for specific performance” is to sue the
other party to fulfill the duties and obligations of the contract.
A. TRUE
B. FALSE

End-of-Course Quiz
23. One of the primary lessons to be learned from the contract
scenarios in this course is to realize that the contract governs the
actions and procedures to be taken in the event of a dispute or
conflict between the parties in closing the transaction.
A. TRUE
B. FALSE

End-of-Course Quiz
24. A “General and Mutual Release” is often used to terminate a
contract between two parties.
A. TRUE
B. FALSE

Real Estate School of Nevada
CE.4208001-RE
3 hours – Contracts

resnFrom Offer to Contract to Closing.pptx

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