Law of Contracts

When MUST licensees use a promulgated form? When the principal has prepared the contract forms When the licensee acts as a principal When the principal has contract forms prepared by his or her lawyers When there is a TREC-mandated form available and the owner has not required another form to be used

When there is a TREC-mandated form available and the owner has not required another form to be used

Which of the following items would a business owner NOT install in a commercial property? Displays Windows Signs Refrigerators

Windows

A purchaser buys real estate and the right to possession is limited to a certain time period. This is which type of property? A townhouse A condominium A cooperative A timeshare

A condominium

The Rules of the Commission contain which of the following statements? The licensee must deal fairly with all parties but owes a duty of fidelity to his/her principal. The licensee has an affirmative duty to keep the principal informed, at all times, of significant information applicable to the transaction. If the broker receives a deposit or earnest money, the broker must deposit the money by the close of business, on the second working day, after the execution of the contract. All of the above.

All of the above.

When a buyer purchases a property they will receive what portion of the air rights and the sub-surface rights? All of them All of them that the current owner owns and does not reserve 50% None of the above

All of them that the current owner owns and does not reserve

Who enforces TRELA and oversees the licensing of agents? Texas Real Estate Broker-Lawyer Committee Texas Real Estate Committee Texas Real Estate Commission Texas Real Estate Counselors

Texas Real Estate Commission

In this type property the owner owns the dwelling and the lot the dwelling is on. It is a two story building connected to the units on each side of it. What is it? Condominium Townhouse Timeshare Cooperative

Townhouse

Which duties are licensees permitted by law to perform? Use promulgated forms Provide legal advice Charge commissions Create legal documents

Use promulgated forms

If a necessary TREC-promulgated form does not exist, licensees must adhere to all of the following rules EXCEPT: Uses a form prepared by an attorney at law licensed in another state Use a form prepared by the principal or the principal's attorney Draw up an original contract when acting as principal Ensure that all contracts are in writing in order to make them enforceable

Uses a form prepared by an attorney at law licensed in another state

Personal property is property that is _______. Moveable, not attached to real estate Attached For sale Not for sale

Moveable, not attached to real estate

Even though there is no consideration, if it determines that rescission of a promise by one party resulted in a loss to the opposing party, a court may enforce _______. Promissory estoppel The statute of limitations The doctrine of laches The parol evidence rule

Promissory estoppel

The Texas Real Estate License Act says that when a seller notifies a broker in writing that he no longer wants the broker to work for him the broker must _______. Stop working at the end of the listing term. Ignore the seller's message. Stop working immediately. Keep doing his best to sell the property.

Stop working immediately.

What is the correct definition of land? Property that is at least 200 acres. The surface of the property and everything below and above the property that is there naturally. The surface of the property, plus all the manmade buildings, etc. Property that is suited for agriculture.

The surface of the property and everything below and above the property that is there naturally.

Tammy and Don plan to go to Florida on vacation. They own a property there where they have the right to stay for two weeks in July. Tammy and Don own a _______. Timeshare Condominium Cooperative Townhouse

Timeshare

What is the primary purpose of the Broker-Lawyer Committee? To arbitrate real estate contract disputes To create, edit and recommend contract forms to TREC To create and codify real estate rules for TREC To promulgate transaction forms, making them voluntary or required

To create, edit and recommend contract forms to TREC

Frank has a listing that he is aware has had the foundation repaired. Frank believes that information could harm his seller so Frank does not give that information to potential buyers. Frank advised the seller not to mention it on his seller's disclosure. Is Frank in danger of ending up in court? Yes, he could be sued under DTPA Yes, but he is exempt from DTPA No, Frank is taking care of his seller No, he did not lie about anything

Yes, he could be sued under DTPA

Which of the following conditions would cause a broker to face doubled or tripled damages under a deceptive trade practices action? The licensee misrepresented material facts. The buyer suffered damages, financial or otherwise, on account of the licensee's misrepresentations. The misrepresentations caused the buyer to do something he or she otherwise would not have done had he or she known the truth. The licensee knew of the misrepresentations when he or she made them. All of these choices.

All of these choices.

The seller provided the listing agent with a sales contract he had prepared and asks the agent to use it. What should the agent do? Refuse, it would be a violation of TRELA. Obey, it would not be a violation of TRELA. Release the listing. Talk with the Real Estate Commissi

Obey, it would not be a violation of TRELA.