Wednesday, May 8, 2024
Difficult Property Gifts

5.5.4 Basic Quiz -- Risk Disclosure
Real estate transactions can fail for a number of reasons, including clouds on title, financing, zoning and environmental issues.
     True      False
The prearranged sale risk for a no-negotiation circumstance is near zero.
     True      False
A buyer waiting in the wings raises the risk level to a high level.
     True      False
With a contingent escrow agreement, the prearranged sale risk is extremely high.
     True      False
In the negotiation phase for the sale of a C corporation, there is little risk of a prearranged sale.
     True      False
A letter of intent for the purchase of a C corporation presents a prearranged sale risk.
     True      False
When the board of directors approves the sale, a binding sale agreement is created.
     True      False
Even a vote of approval by the board of directors of a widely held C corporation will not create a binding agreement.
     True      False
The vote of at least 50% of the shareholders creates a binding sale.
     True      False
The risk of a prearranged sale must be assessed by donor's counsel.
     True      False



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