Texas Principles of Real Estate 1 - Chapter 9

Executory contract

Until a purchase contract is closed upon, it is considered a/an...? Executory contract Executed contract Void contract Implied contract

Sales contract

A contract by which a buyer and seller agree to the terms of a sale is known as a...? Listing contract Sales contract Bill of Sale contract Listing agreement

Express Contract

A contract that has been put into words, either spoken or written is known as a/an...? Express Contract Implied Contract Note Deed

Earnest money deposit

A down payment made by a purchaser of real estate as evidence of good faith is known as...? Earnest money deposit Escrow money Interest payment Binding deposit

Offer and acceptance

A meeting of the minds between two parties is also known as...? Conversion Novation Consideration Offer and acceptance

Breach

A violation of the terms or conditions of a contract without a legal excuse is known as a...? Discharge Conversion Breach All of the above

Implied Contract

An agreement that has not been put into words, but is implied by the actions of the parties is known as a/an...? Implied Contract Express Contract Deed Note

Liquidated Damages

Damages benefiting the non-defaulting party as a result of a default of a contract are known as...? Liquidated Damages Consideration Novation Punitive Damages

Void contract

If a contract is not for a legal purpose, it is considered a/an...? Void contract Enforceable contract Executed contract Executory contract

Unenforceable

Oral listing agreements between a seller and a broker are...? Unenforceable Void Express Executed

Specific performance

The sale of a property as an alternative to damages is an example of...? Specific performance Executed performance General performance Special performance

Unilateral Contract

This contract is formed only if another party performs the requested act...? Bilateral Contract Executed Contract Unilateral Contract Voided Contract

Time is of the Essence

This is a condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time...? Assignment Acceleration Time is of the Essence Novation

Assignees

Those to whom property or interests therein shall have been transferred are known as...? Trustors Trustees Assignees Assignors

Lease under 1 year

Which of the following contracts is NOT required to be in writing...? Lease under 1 year Sales contract for a single family home Lease for more than 1 year Sale contract for a multi-family property

All of the above

Which of the following real estate contracts must be in writing...? Sales contract Lease contract for greater than 1 year Purchase contract for a multi-family property All of the above

Bilateral Contract

A contract in which each party promises to do something is referred to as a...? Unilateral Contract Bilateral Contract Executed Contract Voided Contract

Void Contract

A contract that has no force or effect is referred to as a/an...? Void Contract Valid Contract Executory Contract Executed Contract

Real estate broker

A listing contract exists between a seller and the...? Real estate broker Real estate salesperson Customer Any of the above

Bilateral contract

A listing contract is an example of a/an...? Bilateral contract Unilateral contract Void contract Implied contract

Assignment

A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an...? Assignment Novation Conversion Offer and acceptance

Equitable Title

An interest in real estate such that a court will take notice and protect the owner's rights is known as...? Legal Title Secured Title Protected Title Equitable Title

Consideration

Anything given or promised by a party to induce another to enter into a contract is known as...? Conversion Consideration Novation Assignment

Voidable contract

If one of the parties in a real estate transaction are not considered competent, the contract between the parties is considered a/an...? Voidable contract Enforceable contract Executed contract Executory contract

Assignment

If one of the parties to a contract wants to withdraw without terminating the contract, which of the following can be used...? Novation Acknowledgement Assignment Conversion

An accurate legal description of the property

In addition to the essential elements of a valid contract, real estate contracts must include which of the following...? An accurate legal description of the property Proof of funds The signature of the real estate brokers involved in the transaction All of the above

Assignor

One who assigns or transfers property is known as a/an...? Assignor Assignee Trustor Trustee

All of the above

Real estate agents use which of the following contracts...? Express Contracts Listing Contracts Buyer Representation Agreements All of the above

Conversion

The unlawful appropriation of another's property or earnest money deposit is known as...? Commingling Conversion Steering Redlining

Commingling

To mingle or mix, for example, a client's funds in the broker's personal or general account is known as...? Commingling Conversion Steering Redlining

Discharged

When a contract is fully performed, the contract is considered...? Discharged Assigned Assigned Converted

Implied

When you give your keys to a valet, you assume that the valet will park your car in exchange for a fee. This is because a/an ................... contract was created between you and the valet? Express Voidable Implied Exclusive