medium · National Real Estate Exam contracts
A buyer enters into a 'Lease with Option to Buy.' The lease payments are $1,200 per month, and 200 of that is credited toward the purchase price. This 200 credit:
- Is treated as a taxable gift from the landlord to the tenant each month.
- Serves as the monthly valuable consideration that keeps the option binding.
- Must be held in a federally insured escrow account until closing occurs.
- Is barred outright as a violation of the state's usury lending statutes and rules.
Sign up free to see the explanation and track your rank →
More National Real Estate Exam contracts practice
- A broker's employment contract with a seller is officially called the:
- What is the current status of the contract?
- A buyer defaults on a purchase agreement, and the seller chooses to keep the earnest money
- A buyer makes a written offer to a seller. Two days later, before the seller has responded
- A contract for the sale of a property is signed. Before closing, the property is destroyed
- A contract for the sale of real estate that has been signed by both parties is valid, but
- A contract that is valid and binding but allows one party to avoid the agreement because o
- A contract that is valid and enforceable until it is canceled by a party who was a victim