| Completion of this quiz requires that you answer at least 80% of the questions correctly. |
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| Please answer the following questions: |
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1) |
New home purchasers are required to deposit earnest money to: |
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a.
Show the home purchaser’s financial ability to purchase the home.
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b.
Enable the title company to open escrow.
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c.
Demonstrate the purchaser’s “earnest intent” to complete the purchase transaction on the subject property.
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d.
None of the above
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2) |
In the event the homebuilder intends to deposit earnest money into an operating account, the following is required:
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a.
The account must have a minimum balance.
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b.
The account must be audited annually.
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c.
The deposit to an operating account must be properly disclosed
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d.
All of the above
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3) |
Which of the following is not an obligation of the purchaser in a new home purchase contract: |
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a.
To verify that the home is being constructed in compliance with applicable state/municipal building codes.
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b.
To visit the construction site on a regular basis.
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c.
To directly give instructions to trade contractors.
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d.
All of the above
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4) |
How would a purchaser know if there is an additional fee for a delay in closing? |
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a.
Ask his/her accountant.
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b.
Read the CCR’s for the subdivision.
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c.
Call the title company.
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d.
Review the purchase contract.
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5) |
Which of the following are, typically, obligations of the home purchaser: |
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a.
Deposit negotiable funds as earnest money.
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b.
Notify homebuilder of changes in address where notices are to be sent.
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c.
Provide proof of funds to close the transaction or obtain approval for a mortgage within a specified time frame.
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d.
All of the above.
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