CONTRACT LAW QUIZZES

Statute of Frauds

A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...?

Retail tenant

A percentage lease is typically used with what type of tenant?

Easement

A right acquired by one party to use the land of another party for a special purpose is referred to as a/an...?

Fix a defect in title

A suit to quiet title is used to do which of the following...?

Lessee

A tenant is also referred to as a?

Grantor

After a fee simple determinable estate ends, the interest in the property reverts back to the...?

Bilateral contract

An independent contractor agreement is considered what type of contract...?

It gives the buyer an idea of how much they can afford

How does a pre-approval letter from a lender help a buyer...?

Breach of contract

If a party cannot close on the agreed upon closing date, and an amendment isn't made to the contract, the party is said to be in...?

Non-realty addendum

Items that are considered personal property should be included in the...?

The date when the lien was recorded

Liens are generally prioritized based on which of the following...?

The amount of the debt The time and method of payment of the debt The interest rate of the loan

Mark recently obtained a mortgage and signed a promissory note with the lender. Which of the following is most likely included in Mark's promissory note...?

The lender

Non-judicial foreclosure favors which of the following...?

Promulgated

Once TREC approves a form drafted or edited by the Broker/Lawyer Committee, the form is considered...?

Trustor

The individual who contributes real property to a trust is considered the...?

Voluntary alienation

The transfer of title freely by the owner is referred to as...?

Leasehold estates

There are two primary types of estate in land, freehold estates and...?

Negative amortization

This occurs when monthly installment payments are insufficient to pay the interest accruing on the principal balance, so that the unpaid interest must be added to the principal due...?

Easement by necessity

This type of easement exists when a landowner has no access to roads and is landlocked...?

Easement in gross

Utility companies typically hold what type of easement...?

Obtain a cashier's check Conduct the final walk-through Compare the good faith estimate to the HUD-1 form

What should a buyer do in preparation for closing...?

At the sale of the property

When is an acceleration clause typically executed...?

Information About Brokerage Services

When representing a seller, what is the very first form the broker must have the seller review and sign...?

Contingency

A clause written in a sales contract that states the buyer must be allowed to terminate the contract if he/she cannot obtain financing is an example of which of the following...?

Man-made improvements

Real estate is considered land plus...?

Estate from Period to Period

Which of the following leasehold estates will automatically renew?

Executory contract

A contract in which something remains to be done by one or both of the parties is considered a/an...?

Executed contract

A contract that has been fully performed is considered a/an...?

Life estate

A freehold estate created for the duration of the life or lives of certain named persons is known as a...?

12 months

A home warranty is typically valid for up to how many months after a buyer purchases a property....?

Proprietary lease

Ownership in a cooperative consists of which of the following...?

Real property

Real estate plus the bundle of rights is known as...?

Rules regarding the Texas contract forms

Section 1101.155 of the Texas Real Estate License Act deals with which of the following...?

Factual statements and business details

The Special Provisions part of a contract are to be used for...?

The lesser of the contract price or the appraised value

The amount that a bank will lend on a property is based on which of the following...?

Principal

The buyer is the ..........in a Buyer Angency Agreement?

TRELA

The duties and powers of TREC are described in which of the following documents...?

Ethics

The moral principles that govern a person's or group's behavior are known as...?

Offeree

The party that receives the offer is called the...?

The legal names listed at the beginning of the contract

The party's signatures in a contract must match which of the following...?

Bundle of rights

The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property is known as...?

Third party financing addendum

Which of the following addenda are used when the buyer is obtaining a conventional mortgage to purchase a property...?

Property sale contingency

Which of the following contingencies allows a buyer to get out of a sales contract if he/she cannot sell their existing home...?

Title contingency

Which of the following contingencies ensures that the buyer will receive clear title to the property...?

General warranty deed

Which of the following deeds offers the most amount of protection to the buyer...?

A Tenancy at will

Which of the following exists without a contract or lease, and is unspecified in the duration or exchange of payment...?

The parties do not initial each page of the contract The parties are not listed by their legal names The legal description of the property is not included

Which of the following is a common mistake found in contracts...?

Mortgage lien

Which of the following is an example of a voluntary lien...?

Tax lien Mechanic's lien Judgment lien

Which of the following is an example of an involuntary lien...?

Sales contract Net listing agreement Exclusive right to sell agreement

Which of the following is considered a bilateral contract...?

The lender's loan origination fee

Which of the following is included in a lender's good faith estimate...?

Abstract of title

Which of the following is obtained as a result of a title search...?

Mortgage contingency

Which of the following is the most common type of contingency found in sales contracts...?

Chandeliers

Which of the following items may be difficult to distinguish as real or personal property...?

The price and terms of the transactions The signatures of buyer and seller Legal description of the property

Which of the following must be included in a valid sales contract...?

Commercial banks Savings and loans Credit unions

Which of the following operates in the primary mortgage market...?

Amend the original contract

Which of the following should be done if the seller agrees to offer the buyer a credit for defects found during the property inspection...?

Attorneys

Who is authorized to provide legal advice to sellers...?