Texas Law of Contracts bp
If an agent is sued under the DTPA, they may be sued for up to how many times the actual damages...? 2x 3x 4x 10x
3x
A mortgage creates which of the following...? An easement on the property A cloud on title A lien on the property All of the above
A lien on the property
What should a real estate agent have their client obtain before viewing any properties...? A credit report A pre-qualification letter from a lender A pre-approval letter from a lender Proof of employment
A pre-approval letter from a lender
A condensed history, or summary of all transactions affecting a particular tract of land is known as a...? Abstract of title Chain of title Clouded title General title
Abstract of title
Which of the following is obtained as a result of a title search...? Abstract of title Summary of title Record of title Survey of title
Abstract of title
This refers to a condition in a real estate financing instrument giving the lender the power to declare all sums owed the lender immediately due and payable upon the happening of an event...? Acceleration clause Alienation clause Release clause Assignment clause
Acceleration clause
Which of the following is used to add content to an existing contract...? Amendments Addendums Bulletins Notices
Addendums
This refers to a clause in a contract giving the lender certain rights in the event of a sale or other transfer of mortgaged property...? Assumption clause Alienation clause Release clause Reserve clause
Alienation clause
A non-judicial foreclosure proceeding may occur with which of the following...? Seller financing Deed of trust financing Land contract All of the above
All of the above
RESPA does not apply to which of the following...? Seller financing The buyer's assumption of the seller's existing mortgage A contract for deed All of the above
All of the above
The offer to purchase a house is also called the...? Offer to Purchase Contract of Sale Purchase and Sale Agreement All of the above
All of the above
Which of the following may be prorated between the buyer and seller...? Insurance premiums Rents Taxes All of the above
All of the above
Even after a buyer secures a mortgage, he/she is still protected by which of the following contingencies...? Appraisal contingency Moving contingency Closing contingency Credit contingency
Appraisal contingency
A transfer by a person of that person's rights under a contract is known as a...? Alienation Acceleration Release Assignment
Assignment
The taking of a title to property by a grantee wherein the grantee assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property, is known as...? Assumption of mortgage "Subject-to" a mortgage Release of a mortgage Alienation of a mortgage
Assumption of mortgage
This refers to a mortgage in which the scheduled payment will not amortize the loan over the mortgage term; therefore, for the debt to be fully satisfied, a final payment larger than the uniform payments is required...? Balloon mortgage Straight mortgage Adjustable rate mortgage Fixed term mortgage
Balloon mortgage
A trust involves a trustor, trustee, and a...? Beneficiary Attorney Broker Grantor
Beneficiary
When a deed of trust is used, the lender is referred to as the...? Beneficiary Trustor Trustee Grantor
Beneficiary
A written instrument given to pass title of personal property from a vendor to a vendee is referred to as a...? Deed Title Contract of sale Bill of sale
Bill of sale
Loans processed on uniform loan forms according to FNMA/FHLMC guidelines are referred to as...? Conforming loans Non-conforming loans Unconventional loans Equity loans
Conforming loans
Which of the following is required in a valid deed...? Consideration Signature of the grantee Title insurance A survey of the property
Consideration
The notice of the condition of title to real property given by the official records of a government entity which does not require actual knowledge of the information is known as....? Actual Notice Constructive Notice Implied Notice Conditional Notice
Constructive Notice
A mortgage securing a loan made by investors without governmental underwriting is referred to as a/an...? Conventional loan Unconventional loan FHA loan Home equity loan
Conventional loan
A broker who finds a buyer for a listing on the MLS is entitled to which of the following...? Bonus Salary Cooperation fee All of the above
Cooperation fee
A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender is known as a...? Quitclaim deed Deed of trust Deed-in-lieu of foreclosure Warranty deed
Deed-in-lieu of foreclosure
A down payment made by a purchaser of real estate as evidence of good faith is known as...? Contingency money Security deposit Earnest money Interest money
Earnest money
This Act prohibits discrimination in granting or arraigning credit on the basis of race, color, religion, national origin, sex, marital status, or age...? ADA Equal Credit Opportunity Act TILA Equal Opportunity Housing Act
Equal Credit Opportunity Act
What does the vendor offer a vendee in a transaction...? Equitable title Money A property free of any cosmetic defects All of the above
Equitable title
If a buyer cannot fulfill a contingency, the seller may be able to terminate the contract through which of the following clauses...? Financing clause Escape clause Closing clause All of the above
Escape clause
An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, or year is referred to as a/an...? Estate for Years Estate From Period to Period Estate at Sufferance Absolute Estate
Estate From Period to Period
A typical lease is considered a/an...? Estate for Years Estate From Period to Period Estate at Sufferance Periodic Estate
Estate for Years
A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is referred to as a/an...? Exclusive Agency Agreement Exclusive Right to Sell Listing Agreement Net Listing Agreement Open Listing Agreement
Exclusive Right to Sell Listing Agreement
As an agent to the seller, the broker should fill out the seller disclosure form on behalf of the seller...? T (True) F (False)
F (False)
Earnest money is required in all residential transactions in Texas...? T (True) F (False)
F (False)
In order to simplify the process, a real estate agent should only recommend one mortgage broker to their clients...?
F (False)
Listing contracts are promulgated by TREC...? T (True) F (False)
F (False)
Individuals who are liable for a lot of debt will most likely obtain what type of loan...? Conventional loan FHA-insured loan Non-conforming loan All of the above
FHA-insured loan
Personal property that has become real property by having been permanently attached or adapted to real property is known as a...? Fixture Trade fixture Chattel Emblement
Fixture
A contract that requires a party to not do something is considered a ...................... contract? Performance Forbearance Unilateral Optional
Forbearance
If a contract requires a party to not do something, it is referred to as...? Forbearance Performance Blocking Consideration
Forbearance
David is a real estate agent in Dallas. Which of the following Texas promulgated contract forms will David most likely use in his practice...? Form 20-12 Form 12-A Form OP Form 10-1
Form 20-12
A deed used to convey real property which contains warranties of title and quiet possession, and the grantor thus agrees to defend the premises against the lawful claims of third persons is referred to as a...? General warranty deed Special warranty deed Quitclaim deed Bargain and sale deed
General warranty deed
Which of the following can be purchased, which protects the buyer against defects found in the personal property left by the seller...? Title warranty Home warranty Real property warranty General warranty
Home warranty
When representing a seller, what is the very first form the broker must have the seller review and sign...? Information About Brokerage Services Listing contract Disclosure of Agency Purchase contract
Information About Brokerage Services
Which of the following should not be included in the Special Provisions part of a contract...? Factual statements Business details Information found in an addendum All of the above
Information found in an addendum
In a mortgage State, the lender must go through ......................... in order to obtain the property? Non-judicial foreclosure Short sale Judicial foreclosure Modified foreclosure
Judicial foreclosure
A contract used in a sale of real property whereby the seller retains title to the property until all or a prescribed part of the purchase price has been paid is referred to as a...? Land contract Seller financing contract Listing contract Mortgage
Land contract
Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept is known as...? General title Warranty of title Marketable title Reasonable title
Marketable title
This refers to an instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation...? Deed Mortgage Title Bill of Sale
Mortgage
One to whom a mortgagor gives a mortgage to secure a loan or performance of an obligation is referred to as a...? Grantor Grantee Mortgagor Mortgagee
Mortgagee
One who gives a mortgage on his or her property to secure a loan or assure performance of an obligation is referred to as a...? Mortgagor Mortgagee Grantor Grantee
Mortgagor
In a Deed of Trust State, the lender can obtain the property through which of the following means...? Non-judicial foreclosure Short sale Judicial foreclosure Modified foreclosure
Non-judicial foreclosure
Which of the following listing contracts are illegal in Texas...? Net listing agreements Open listing agreements Exclusive agency agreements None of the above
None of the above
Optional TREC contracts are designated by which of the following...? 'OP' 'OT' 'PO' 'ST'
OP
If the residential contract form is not signed by both parties, the contract is still considered a/an...? Executed contract Offer Binding contract Executory contract
Offer
An options agreement is included in which of the following contracts...? One to Four Family Residential Contract (resale) Exclusive Right to Sell Agreement Net Listing Agreement Residential Listing Contract
One to Four Family Residential Contract (resale)
Which of the following is the most commonly used promulgated contract form...? Optional Residential Contract Form OP Residential Listing Contract One to Four Family Residential Contract (resale)
One to Four Family Residential Contract (resale)
Which of the following are not considered promulgated contract forms...? Standard contracts Optional contracts Required contracts All of the above
Optional contracts
The buyer in a transaction typically hires a property inspector during which part of the closing process...? Offer and acceptance period Options period Loan closing Final closing
Options period
The inspection contingency protects the buyer during which phase of the closing process...? Approval period Options period Loan origination period Transfer period
Options period
The buyer is the .....................in a Buyer Agency Agreement? Principal Customer Agent Broker
Principal
Who should the buyer hire during the options period...? Escrow agent Broker Property inspector Surveyor
Property inspector
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price is known as a...? Conforming Mortgage Purchase Money Mortgage Unconventional Mortgage Reverse Annuity Mortgage
Purchase Money Mortgage
Land and everything permanently attached to land is known as...? Real estate Real property Bundle of rights Chattels
Real estate
This refers to a stipulation that upon the payment of a specific sum of money to the holder of a trust deed or mortgage, the lien on the property shall be removed...? Alienation clause Acceleration clause Release clause Assumption clause
Release clause
Section 1101.155 of the Texas Real Estate License Act deals with which of the following...? Rules regarding the Texas contract forms Rules regarding broker conduct Rules regarding agency relationships Rules regarding independent contractors
Rules regarding the Texas contract forms
An independent contract agreement exists between a broker and a...? Salesperson Principal Client Buyer
Salesperson
The TREC form OP-H is used for which of the following reasons...? Agent disclosure Seller disclosures Buyer disclosure Attorney disclosures
Seller disclosures
Which of the following will most likely warrant the highest interest rate...? Seller financing Conventional mortgage Unconventional mortgage FHA loan
Seller financing
The effective date of a contract serves as the...? Start date of the contract End date of the contract Closing date Draft date
Start date of the contract
A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...? Statute of Frauds Statute of Limitations Statute of Contracts Statute of Agency
Statute of Frauds
An interest only loan is also known as a/an...? Adjustable rate loan Straight loan Balloon loan Fixed rate loan
Straight loan
Funds provided usually by the builder or seller to temporarily reduce the borrower's monthly principal and interest payment is known as a...? Credit Voucher Subsidy buydown Reduction
Subsidy buydown
Notice that a contract has been signed can be done orally or in writing...? T (True) F (False)
T (True)
Who oversees the Broker/Lawyer Committee...? The Texas Real Estate Commission The Texas Bureau of Real Estate The Texas Governor The Texas Attorney General
The Texas Real Estate Commission
Non-judicial foreclosure favors which of the following...? The lender The borrower The broker The Trustee
The lender
Abby is in the process of purchasing a house and needs to add a third party financing addendum to the contract. After the third party financing addendum is signed by both Abby and the seller, who should receive a copy of the addendum...? The appraiser The title company The surveyor All of the above
The title company
What is the standard commission rate for brokers in Texas...? 2% (percent) 3% (percent) 6% (percent) There is no standard commission rate
There is no standard commission rate
The evidence of right which a person has to the ownership and possession of land, commonly considered as a history of rights is known as...? Deed Chattels Title Bundle of rights
Title
When a deed of trust is used, who serves as a neutral third party to the borrower and lender...? Beneficiary Grantor Trustor Trustee
Trustee
One who borrows money from a trust deed lender is referred to as the...? Beneficiary Grantor Trustor Trustee
Trustor
When is a seller's property disclosure not required...? When a two family residence is being sold When any single family home is being sold When property is being sold as a result of a court order When the seller elects to pay a fee instead of providing a disclosure
When property is being sold as a result of a court order
