Answers:


1. c.

2. b.

3. c.

4. a, d & e.

5. a, b & d.

6. False. The comps tell you what homes sold for when last purchased, not list prices of current homes for sale.

7. False. The inspections must be done within the time frame listed in the contract. Normally within 1 week of acceptance although it can vary.

8. False. Normally the buyer gets the earnest money plus interest if the deal doesn't go through.

9. False. Contingencies must be included in the contract for termination or negotiation of terms based on specific reasons. You can't just terminate a contract for no reason.

10. False. The purchase price is on average 6 percent lower than the asking price.