When a Buyer Signs an Offer to Purchase a Property

question 24

Multiple Choice

When a buyer signs an offer to purchase a property, the broker receives a monetary amount from the purchaser of 5 or 10 percent of the purchase price. This deposit is commonly referred to as the:

• A) commission
• B) earnest money
• C) closing cost
• D) title insurance premium

Appreciate the convenience of asynchronous communication offered by email.

Identify the potential for misinterpretation in email communications and the importance of clear writing.

Acknowledge the traceability and accountability that email communication provides.

Comprehend the ability of email to facilitate mass communication efficiently.

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Definitions:

Securities Act of 1933

A U.S. law enacted to regulate the offer and sale of securities, primarily aimed at preventing deceit, misrepresentations, and other fraud in the securities industry.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, often with dividends that are paid out before those of common shares.

Securities Act

U.S. legislation enacted in 1933 to regulate the sale of securities, primarily aimed at preventing fraud in the securities market.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in unintended harm to another party.