Law of Contracts

Before closing, all of the following must be complete EXCEPT: a. all repairs must be completed b. all property taxes must be current c. all outstanding mortgages must be resolved d. all judgements must be resolved

A

Case law is defined by: a. precedents b. statutory law c. TREC d. TRELA

A

Where is the legal description of a property recorded? a. the county courthouse where the property is located b. it is part of the deed c. state capitol d. archives of the county

A

What is the law that established the Texas Real Estate Commission? a. TREC b. TRELA c. TAR d. TCEQ

B. TRELA

Paragraph 13 of the one-to-four family residential resale contract' addresses prorations. Which of the following is prorated at closing? a. utilitues b. taxes c. escrow fees d. title policy

B. Taxes

Duress or undue influence creates what kind of contract? a. valid b. voidable c. unenforceable d. void

B. Voidable

A property whose ownership rights is vested with several owners is called a: a. co-operative b. townhome c. timeshare d. condominium

C

Condominium ownership includes: a. the land and the unit b. the land ,the parking space and a percentage of the recreational areas c. the interior space of the unit and a percentage of the common area d. the interior and exterior of the unit

C

Economic damages in a DTPA suit do NOT include: a. cost of repairs b. pecuniary loss c. pain and mental anguish d. cost of replacement

C

What are the options of the non-defaulting party when the other defaults? a. to enforce specific performance b. to terminate the contract and receive the earnest money c. either a or b d. neither a or b

C

When should info About Brokerage Services be discussed? a. at first 'face-to-face' meeting b. at the open house c. at first substantive dialogue about a specific property d. at the time an offer is written

C

RESPA does all of the following EXCEPT: a. RESPA protects buyers from foreclosures b. RESPA regulates the cost of mortgage settlement c. RESPA protects from unnecessary charges d. RESPA outlaws kickbacks

a.

Nonhomogeneity, immobility, and indestructibility are examples of: a. physical characteristics of property b. economic characteristics of property c. bundle of legal rights of property d. mineral rights of property

a. Physical char of property

With regard to common mistakes on contracts, it is recommended that the seller's name be used on the contract as it is named in the ____________. a. deeds b. previous contract when they bought the house c. survey d. mortgagee's title company

a. deed

This estate may be terminated at will of either party. It has no duration limitation. a. estate at will b. estate from period to period c. estate for years d. freehold estate

a. estate at will

The seller covenants with the buyer that the seller has not personally done anything to adversely affect the title being conveyed. What does he give to the buyer? a. a special warranty deed b. a general warranty deed c. a quitclaim deed d. a title policy

a. special warranty deed

All are considered to be practicing law without a license EXCEPT: a. disclose to the principal all pertinent facts b. giving legal advice c. giving an opinion as to the validity of title d. giving advice as to the legal effect of any contract

A

At closing, which of the following is not prorated? a. option money b. taxes c. interest d. rent

A

An agency relationship which is created after the fact when the principle agrees to be bound by the actions of another person who is acting without authority is called: a. agency by ratification b. implied agency c. expressed oral agency d. expressed written agency

A. Agency by ratification

Subsurface, surface, and the air above define ___________. a. land b. real estate c. real property d. realty

A. Land

After the contract has been finalized, inspections and repairs, change of assigning fees, closing dates, and disclosures are addressed on what form? a. amendments b. addenda c. contract d. no forms are required

A. amendments

What gives the buyer the 'unrestricted right to terminate' within an agreed number of days for a sum of money? a. sales contract b. option money paragraph c. earnest money paragraph d. voidable contract

B

Who is responsible for the protection of the consumer, qualifying the real estate agent, and the enforcement of professional standards? a. Texas Association of REALTORS b. Texas Real Estate Commission c. Texas State Bar d. The National Association of Realtors

B. TREC

A promise for a promise is considered a ___________ contract. a. unilateral b. bilateral c. valid d. void

B. Bilateral

Land and all items attached to the property are considered: a. attachments b. real property c. personal property d. personal items

B. Real property

The Broker-Lawyer Committee has how many members? a. 10 b. 6 c. 13 d. 3

C. 13

Property in Texas owned by the husband and wife that was acquired during the marriage is called: a. separate property b. tenancy in common c. community property d. non-challenging ?

C. Community property

This is a communication that gives the listener the power to conclude a contract. a. representation b. acceptance c. offer d. disclosure

C. Offer

In owner financing, who receives the deed of trust? a. the buyer b. the escrow officer c. the seller d. the mortgage company

C. Seller

The only provision in the TREC contract for which time is of the essence is the: a. loan approval clause of the contract b. mandatory homeowner's association documents c. termination option section of the contract d. US constitution

C. Termination...

The consumer is not protected from the licensee under the Deceptive Trade Act for which of the following? a. misrepresentation of a material fact b. failing to disclose info with the intent of inducing a consumer into a transaction c. committing an unconscious act d. practicing real estate with an expired license

D

What is a 'contingency' with regard to contracts? a. a due on sale clause b. an offer to purchase c. kick out clause d. something written in a contract that makes the fulfillment of the contract dependent on certain conditions

D

What is the purpose of the Broker-Lawyer Committee? a. governing TREC b. setting ethics for Realtors c. enforcing TRELA d. writing and reviewing contract forms

D

Where is the law of agency defined? a. TREC b. the state constitution c. National Association of Realtors d. TRELA

D

What is the occupation of land to which another person has title with the intention of possessing it as one's own? a. escheat b. police power c. eminent domain d. adverse possession

D. Adverse possession

Some of the most common mistakes in contracts are all of the following EXCEPT: a. time for performance too short b. inadequate legal description c. improper use of special provisions d. broker's fee

D. Broker's fee

This is a form of real property with portions designated for separate ownership and the remainder designated for common ownership. a. cooperative b. corporation c. trust d. condominiums

D. Condominiums

If a party to the contract defaults, what options does the non-defaulting have? a. to terminate the contract and receive the earnest money b. to enforce specific performance c. both a and b d. either a or b

D. Either

This type of ownership assumes that husband and wife are one person. a. community property b. joint tenancy c. tenancy in common d. tenants by entirety

D. Tenants by entirety

In order to fully comply with paragraph 6 of the One to Four Family Residential Contract (Resale) concerning the survey, the seller must provide both the survey and the: a. seller disclosure b. T-47 c. letter of approval from the original survey company d. appraised

b.

Which os the following is not a TREC responsibility? a. regulation of real estate providers b. enforcement of real estate ethics c. education of real estate providers d. licensing of real estate providers

b.

FNMA, FHLMC, GNMA, REITS describe: a. primary markets b. secondary markets c. regions of the Federal Reserve d. Mortgage lenders

b. Secondary markets

TREC exists to protect: a. real estate agents b. the citizens of texas c. real estate brokers d. lenders, appraisers, and all licensees

b. The citizens of Texas

Involuntary alienation is not done with: a. escheat b. a will c. adverse possession d. eminent domain

b. a will

A seller conveys personal property with a: a. deed b. bill of sale c. deed of trust d. nothing is required

b. bill of sale

The owner agrees to list the property with only one broker, however, the owner reserves the right to sell the property themselves. What kind of listing is this? a. exclusive right to sell b. exclusive agency c. open d. net

b. exclusive agency

Which of the following includes 'Right of Survivorship'? a. fee simple b. joint tenancy c. tenancy in common d. freehold estate

b. joint tenancy

General Partnership is a flow-through business entity where profits and losses flow to the individual partners just as they do in a(n): a. C Corp b. S Corp c. sole proprietor d. there are no other entities that are follow-through

b. s corp

In an S Corporation, the earnings of the shareholders are ______________. a. deferred b. taxed c. automatically put into a tax free IRA d. shifted to a C Corporation if there are profits in the S Corporation

b. taxed

All of the following are reasons that contracts may terminate EXCEPT: a. fraud b. misrepresentation c. when there is a suit for specific performance d. previous agreement

c.

As far as consumer info goes, the Fair Credit Reporting Act legislation that was enacted promotes all of the following EXCEPT: a. accuracy b. privacy c. relevance d. fairness

c.

In addition to the existing survey, what else needs to be included for the title company to consider accepting the existing survey? a. the S67 testimony of the seller b. a letter from the original surveyor c. the T47 affidavit d. a lender from the lender

c. T47 affidavit

With this lease, the tenant pays the taxes, insurance, and maintenance. a. gross lease b. percentage lease c. net lease d. ground lease

c. net lease

For a sum of money negotiated between the parties, the buyer has a time period, stated in this paragraph, for the "unrestricted right" to terminate. Which paragraph does this reference?: a. sales price paragraph b. earnest money paragraph c. option money paragraph d. repairs escrow paragraph

c. option money paragraph

What is real property that is transferred from the seller to the buyer? a. all things attached to the property b. all things attached to the property and other property agreed on between parties c. all things attached to the land d. all things attached to the property and owned by the seller

d.

What does a "kick-out" clause do? a. it allows a landlord to kick a tenant out of the property b. it allows the buyer to kick out the seller if the closing date extends beyond the date stated in the contract c. it "kicks out" any contingency d. it is a clause stating the seller can continue to market the property

d. It is a clause stating...

What kind of law is handed down by the legislature? a. agency law b. common law c. TREC d. statutory law

d. Statutory law

Which is not a physical characteristic of property? a. indestructibility b. nonhomogeneity c. immobility d. assemblage

d. assemblage

Title flaws must be dealt with, property taxes must be current, and outstanding mortgages and judgements must be resolved before the ____________. a. executed contract b. loan origination c. inspection of property d. closing

d. closing

The ________ is the contractual agreement to repay the debt. a. mortgage b. deed of trust c. deed d. note

d. note