Law of Contracts - Missed Questions

Which of the following is an anternative to foreclosure?

Deed in lieu of foreclosure

What information does the Loan Estimate provide to buyers under required disclosures law?

Loan payment schedule

Which term describes the process of real property becoming personal property by detaching it from the land?

Severance

Who or what determined the listing price for the seller's property in the TAR Residential Real Estate Listing Agreement Exclusive Right to Sell contract?

The Seller

Who is responsible for delivering a signed deed to the buyer?

The seller

What type of estate involves a piece of real estate that's owner by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling until in one-to-two-week intervals during the year?

Timeshare

Which one of the following protects the owner against financial loss if the real estate title has defects?

Title Insurance

What's the purpose of a sales contract?

To document the agreement between a buyer and a seller in a real estate sales transaction

What's the purpose of the E-sign?

To identify what can be used as an electronic signature

What is the purpose of the Texas Real Estate License Act?

To protect the public

In Texas, how long does a homeowner have to pay off outstanding liens against their property to prevent a foreclosure sale?

Until the foreclosure sale is held

What is probate?

A legal process to determine a will's validity

What is a proration?

An amount apportioned according to use

What is the difference, if any, between a TREC-approved form and a TREEC-promulgated form?

An approved form is optional; a promulgated form is required

Which type of easement provide a right-of-way for a railroad?

An easement in gross

Before closing, who should get an appraisal of the property if the transactions being financed?

Buyer

Which government power allows it to convey title to a property involuntarily, while paying the property owner?

Eminent Domain

What may the lender require if the borrower is unable to put at least 20% down on a conventional loan?

Private mortgage insurance

Which part of a loan is the agreement to repay the debt?

Promissory Note

What deed restrictions are imposed by a developer who wants to maintain specific standards in a subdivision?

Restrictive covenants

What remedy for breach of contract is a seller using if the seller sues a buyer who tried to back out of a contract before closing and the court compels the buyer to complete the purchase?

Suit for specific performance

Which of the following entities promulagates forms for Texas licensees?

TREC

A tenant has a triple net lease. Per the lease, the tenant pays for which of the following expenses related to the property?

Taxes, maintenance, insurance

In Texas, what type of leasehold is characterized by possession of a property, such as a situation in which a tenant continues to occupy an apartment after the lease has terminated?

Tenancy at sufferance

In which form of co-ownershio is a person's ownership inheritable?

Tenancy in common

If a seller is in breach of contract, which of the following is the possible remedy for the buyer?

The buyer could sue the seller for specific performance

Which option best describes a computerized loan origination (CLO) system?

An automated system that allows borrowers to compare loan products electronically, and even apply for a loan

Andrew's original 18-month commercial lease has ended, and now, with his landlord's permission, he has gone into a month-to-month lease situation. What type of clause was in the original agreement that enabled this situation to occur?

Automatic renewal

What is one of the exceptions to the rules requiring the use of TREC-promulgated forms?

A property owner may prepare an alternate form

Which of the following is an example of a clouded title?

Conflicting legal description

Wilma died without a will. How will her heirs be determined?

Intestate sucession

In which section of the sales contract can the buyer indicate whether the sale of the property is contingent upon the buyer obtaining financing?

Loan Contingency

Which of the following is a broker's obligation per TAR's Residential Buyer/ Tenant Representation Agreement ?

Located a property that meets the client's criteria within a specified market area

When does a breach of contract occur?

One party fails to meet the obligations of the contract

With a land contract, who retains the title to the property?

Seller

How are accrued real estate taxes that have been assessed but not yet due handled in a real estate transaction?

The tax bill will be prorated to the day of closing

In what way is a townhome similar to a condominium?

They both typically have HOA dues

Which of the following is one reason a lender might charge a prepayment penalty?

To recover the money lost in anticipated interest

To effect a transfer of title by deed in Texas, what must occur?

The grantor must deliver the deed to the grantee and the grantee must accept it.

With a deed of trust, who or what has equitable title to the property?

Borrower

The property holder owns the property subject to a condition in which type of fee simple estate?

Fee Simple Defeasible

In what type of lease agreement does a commercial tenant pay base rent plus an allocated amount of gross sales above a certain threshold?

Percentage

Both parties must sign a multitude of documents at closing. Funds must change hands. Who keeps all of this straight?

The closing agent

What TREC-promulgated form must be used to make a material change to an existing sales contract?

Amendment to Contract

Which of the following actions performed by a subscribing witness, such as a notary public, is required for a Texas deed to be recorded?

Acknowledgment

Your brokerage firm uses pre-printed sales contract forms, but the seller wants to add some language about staying in the house and renting from the buyer for a month after closing. What should you use to add this information?

Addendum

Which of the following addenda is required as part of the TREC residential One to Four Family (Resale) contract when the buyer's purchase of the property is contingent upon the buyer having to sell their own property first?

Addendum for Sale of Other Property by Buyer

Where in the Texas sales contract should you indicate the addenda are being attached?

Agreement of parties

The act of transferring ownership of a property is known as ________

Alienation

Per the casualty loss section of the TREC One to Four Family Residential Control (Resale), who's responsible for restoring the property to its previous condition in the event the property is damaged or destroyed?

The seller

The secondary mortgage market buys loans from the primary market. How does this aid the leading market?

Ensure funds are available to borrowers

Hector's seller clients want to reserve the right to find a buyer or tenant themselves and avoid paying a brokerage fee and yet they still want Hector to make sure their property receives the broadest possible market exposure. What type of listing agreement do Hector's clients want to have?

Exclusive agency

When a buyer is taking possession of their new home, what type of contract must they have?

Executed

In Texas, how long does a party to a contract from a contract breach to sue the other party?

Four years

In what type of commercial property lease agreement does the landlord pay all expenses related to the property and pass the costs on to the tenants in their rent payments?

Gross

If a party to a contract signs a contract with a buyer for a sale of property the "seller" doesn't legally own, what type of contract is this ?

Void

Which of the following statements would you use to describe a net listing to a protective seller client?

You, as the seller, specify the price you want for the property and agree to pay me as your agent any amount received above that price.

Which government power is used to do what's right for the public good where the owner may or may not be compensated?

Police Power

Items that aren't attached permanently to the real property but are assumed to belong to the house, such as draperies, fireplace inserts and screens, and above-ground swimming pools, are referred to in the Property section of the TREC Residential one to Four Family (resale) contract as __________.

Accesories

Before the title company will issue on an insurance policy to a Texas buyer, which of the following must the seller furnish to the buyer?

A commitment

Which of the following describes a contract for deed agreement?

A legally binding, written contract between a buyer of a property and the seller that allows the buyer to pay for the property in installments

What's a conforming loan?

A loan that meets certain criteria that are accepted by Fannie Mae and Freddie Mac

What myst be obtained by a seller from a buyer when the property is subject to a condominium or homeowners association?

Approval of homeowners and condominium association documents

With a mortgage, who or what holds equitable title to the property?

Borrower

Which clause allows the Texas seller to keep their property on the market after accepting an offer contingent on the sale of the purchaser's current home?

Kick-out

You're representing an owner client in a lease transaction. Which of the following duties do you owe your client?

Gather information about the type of property that the owner wants to lease, and then list and market the property accordingly

What type of commercial lease agreement would tenants use if the tenants intend to build a permanent structure that would become the property of the landlord when the lease expires?

Ground

Items that are attached to the real property, such as the house and garage, or that are permanently installed or built in are referred to in the property section of the TREC sales contract as _______

Improvements

Susan Duffield died testate at age 49. What can be said about Susan's estate?

It will be put through probate

Which ownership type is defined by four unities: time, title, interest, and possession?

Joint Tenancy

A contract is executed in Texas on June 1. What is the effective date on which all contingency deadlines will be based?

June 2. The day after the contract is signed by the parties.

What sort of estate gives tenants the right to temporary possession of the property during their tenancy?

Leasehold

What type of breach of lease remedy is a landlord pursuing in Texas if, after giving proper notice, the landlord changes the tenant's locks in an attempt to collect rent?

Lockout

Per the TREC One to Four Family Residential Contract (Resale), when is the seller required to give the buyer possession of the property?

On the date indicated in the contract

Which element of a valid contract is established by getting the signatures of all parties?

Offer and acceptance

In Texas, the effective date of a contract, on which all deadlines are based in ______ the executed date of the contract

One day after

Which of the following describes a unilateral contract?

One in which only one part is obligated

When does substantial performance of a contract occur?

One party has met must but not all of the terms specified in the contract, and may be required to pay damages for the terms not met

In Texas, what type of leasehold involves a possessory interest that is automatically renewed at the end of each period specified in the lease?

Periodic Estate

Government agencies usually become involved during which phase of an environment assessment?

Phase III: Clean-up

Which phase of the environmental site assessment involved addressing any on-going or potential issues?

Phase IV: Management

Which phase of the environmental site assessment involves addressing any on-going or potential issues?

Phase IV: Management

What type of arrangement allows the buyer to retain title to the property, but places a security interest in the property on behalf of the seller?

Purchase money mortgage

Which area of real estate law covers the requirements of a licensee when performing real estate activities, within the state, including continuing education requirements, supervisory requirements, and prohibited conduct?

Real Estate license law

Condominiums involved what type of ownership?

Real property

What type of deed gives ownership rights to the highest bidder on a foreclosed property?

Referee's deed

In which market do lenders purchase packaged loans?

Secondary mortgage market

Who's responsible for receiving, handling, and disbursing earnest money for a residential sales transaction in Texas?

The escrow agent

Under Texas law, which of the following occurs if a tenant dies during the term of lease?

The lease doesn't terminate and becomes the responsibility of the tenants heirs.

Which of the following will be issued only if title is acceptable and an attorney provides a certificate of title opinion?

Title Insurance policy

As part of a sales contract, the seller was supposed to provide a copy of the seller's disclosure to the buyer, but the seller failed to do so. What type of contract is this?

Voidable

Which of the following is an exception to the required use of promulgated contract forms in Texas?

When an attorney drafts the necessary form on the owner's behalf.