Reference no: EM132833620

Problem 1: The buyer wrote an offer to purchase a property and gave the broker $10,000 earnest money. the offer required the seller to respond withing six days. three days later the buyer decicded to terminate the offer and has asked for the earnest money to be refunded. what will normally happen to the earnest money in such a situatuion?

a) the broker can withdar the offer , but the seller and the broker will each retain five thoasand dollars as liquidated damges
B) the broekr will reatain the earnest money deposti in lieu of commission in the the event of terminatiion
c) the buyer cannot terminate the offer until six days are up and wll there for forgeit the earnest money depost
D) Until the seller hass accepted the offer the buyer has the right to terminate and recive the refund of the depost

Problem 2: A buyer has executed a contract to purchase real property. It is discovered that he is only 16 years old, the contract is

A) void
B) binding
C) unenforceable
D) voidable as to the minor's interest

Problem 3: When a land owner uses his land as security for a loan, the encumbrance created is called:

A) A special security
B) A mortgage or deed of trust lien
C) An involuntary lien
D) A gratuitous privelige