Question

In: Economics

The following is a list of contract provisions. With each provision, indicate whether it favors the seller or the purchaser and briefly state why.

The following is a list of contract provisions. With each provision, indicate whether it favors the seller or the purchaser and briefly state why.

a. Seller is to convey marketable title to the real property at closing.

b. "Time is of the essence."

c. Seller shall not alter or encumber the title to the property after the date of the contract without the prior written consent of purchaser.

d. The taxes and insurance shall be prorated.

e. The contract is silent as to the risk of loss between date of contract and date of closing.


Solutions

Expert Solution

1) This favors the buyer, Every property must have a marketable title, Without title the buyer will be in trouble

2) Time of essence usually favor the seller, Because once the time of the contract is over, the seller can choose not to sell the property at that particular agreed price

3) Favors buyer, Any clause that limits the rights of seller automatically favors buyer. Seller will loose right to restrict the title change after the purchase of property without approval of the buyer. This favors buyer

4) Favors seller, As taxes are distributed between buyer and seller.

5) Neutral,

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

The following is a list of contract provisions. Do these provisions favor the seller or the purchaser?
The following is a list of contract provisions. Do these provisions favor the seller or the purchaser? a. Seller is to convey insurable title to the real property at closing. b. Seller is to convey title to the real property subject to utility easements and other restrictions of record. c. Seller shall not alter or encumber the title to the real property after the date of the contract without the prior written consent of purchaser. d. The real estate contract is freely assignable. e. The...
For each of the following scenarios, state whether there is or is not a contract, and...
For each of the following scenarios, state whether there is or is not a contract, and why: 1. Bob and Mary were talking at a bar on Thursday night. Bob wrote the following on coaster and handed it to Mary: “I promise to pay you $1,000 to dance with man at the bar in the Gray Shirt” Mary read the coaster, signed it, and danced with the man in the gray shirt. 2. Mr. Wilson said to 18 year old...
Indicate whether each of the following statements is True or False, and Briefly Justify your answer....
Indicate whether each of the following statements is True or False, and Briefly Justify your answer. The Coefficient of Determination in a multiple linear regression model, R2, is the ratio of residual sum of squares (RSS) to total sum of squares (TSS). It tells us the percentage of unexplained variation in the dependent variable.
Indicate whether each of the following statements is True or False, and Briefly Justify your answer....
Indicate whether each of the following statements is True or False, and Briefly Justify your answer. The Gauss-Markov Theorem says that within the class of linear, unbiased estimators, OLS estimators have zero variance.
Indicate whether each of the following statements is true or false, and explain why. A competitive...
Indicate whether each of the following statements is true or false, and explain why. A competitive firm that is incurring a loss should immediately cease operations. A pure monopoly does not have to worry about suffering losses because it has the power to set its prices at any level it desires. In the long run, firms operating in perfect competition and monopolistic competition will tend to earn normal profits. Assuming a linear demand curve, a firm that wants to maximize...
Indicate whether each of the following statements is true or false and why (reasons in support...
Indicate whether each of the following statements is true or false and why (reasons in support of your answer): a)Economies of scale arise because of the inverse relationship between the quantity produced and per unit fixed costs. b)In theory, monopolists and oligopolists operating in contestable markets may benefit consumers more than firms operating under conditions of perfect competition. c)Suppose that a profit maximizing monopolist has a constant marginal cost equal to 6 and faces the following inverse demand: P=30-3Q. The...
3. Indicate whether each of the following statement is true or false and why: a. Product...
3. Indicate whether each of the following statement is true or false and why: a. Product standard cost data are often utilized by managers and analysts in departments other than the accounting department. b. Standard cost accounting systems are expensive to operate. c. Wage rate variance information is less useful to a production manager than labor efficiency variance information. d. When standards cost are set tight and inventories are growing, a standard cost accounting systems tends to report lower operating...
Indicate whether each of the following statements is true or false and why (reasons in support...
Indicate whether each of the following statements is true or false and why (reasons in support of your answer): (a) Economies of scale arise because of the inverse relationship between the quantity produced and per unit fixed costs. (b) In theory, monopolists and oligopolists operating in contestable markets may benefit consumers more than firms operating under conditions of perfect competition. (c) Suppose that a profit maximizing monopolist has a constant marginal cost equal to 6 and faces the following inverse...
for each of the following oxides, indicate whether it is ionic or molecular and whether it...
for each of the following oxides, indicate whether it is ionic or molecular and whether it is acidic or basic. Then write a balanced equation for the reaction with the oxide and water. SO2(g), CaO(s), Li2O(s), SeO(s), P4O6(s)
List the major satellites of Jupiter & Saturn. Briefly indicate some of their properties &/or why...
List the major satellites of Jupiter & Saturn. Briefly indicate some of their properties &/or why they are of particular interest
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT