Texas Law of Contracts Exam Review Questions
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With Correct Answers
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Counteroffer //- //CORRECT //ANSWERS(S)✔✔A //buyer //makes //an //offer, //the //seller //wants //to
//accept //the //offer //if //the //buyer //will //agree //to //a //change //in //price. //In //these //circumstances,
//the //seller //will //give //the //buyer //a
Statute //of //Frauds //- //CORRECT //ANSWERS(S)✔✔What //law //requires //certain //types //of
//contracts //to //be //enforceable?
Addresses //in //the //sales //contract //- //CORRECT //ANSWERS(S)✔✔the //buyer //and //the //seller
//have //agreed //that //the //seller //will //remove //a //huge //birdbath //in //the //backyard //before //the
//buyer //takes //possession //of //the //property. //This //agreement //should //be
Rectangular //government //survey //system //- //CORRECT //ANSWERS(S)✔✔Which //method //of
//providing //legal //description //uses //north-south //and //east-west //lines //to //describe //the
//location //of //the //property?
Void //- //CORRECT //ANSWERS(S)✔✔When //a //contract //is //unenforceable //because //it //does //not
//fulfill //the //statutory //requirements //it //is
It //serves //as //a //remedy //of //default //- //CORRECT //ANSWERS(S)✔✔Which //of //the //following //is
//TRUE //regarding //earnest //money?
Breach //of //contract //by //the //other //party //- //CORRECT //ANSWERS(S)✔✔Suit //for //specific
//performance //is //an //action //one //party //can //take //in //the //event //of
, They //must //be //used //by //real //estate //license //holders //in //all //transactions //to //which //the //forms
//are //applicable //unless //one //of //four //exceptions //apply //- //CORRECT //ANSWERS(S)✔✔Which //of
//the //following //is //TRUE //about //TREC-promulgated //contract //forms?
Contingency //- //CORRECT //ANSWERS(S)✔✔The //sales //contract //says //the //buyer //will //purchase
//only //if //the //buyers //current //home //closes //within //the //next //30 //days. //This //is //called
Has //equitable //title //in //the //property //- //CORRECT //ANSWERS(S)✔✔A //buyer //purchases //a
//home //under //a //land //contract. //until //the //contract //is //paid //in //full, //the //buyer
(Private //mortgage //insurance //(PMI) //for //conventional //mortgage, //to //avoid //pmi //on //a
//conventional //there //has //to //be //20% //down //on //a //conventional //loan, //the //lender //may
require //to //have //PMI //on //20% //of //the //loan //amount. //- //CORRECT //ANSWERS(S)✔✔
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VA //Loans //- //CORRECT //ANSWERS(S)✔✔What //is //the //certificate //of //eligibility //for?
Certificate //for //eligibility //- //CORRECT //ANSWERS(S)✔✔All //of //the //following //is //required //for
//FHA //except
Yes, //and //it //would //void //the //contract //- //CORRECT //ANSWERS(S)✔✔If //the //seller //accepts //an
//offer, //can //they //later //claim //that //they //were //in //un-due //duress?
Trustor //- //CORRECT //ANSWERS(S)✔✔The //Borrower //under //a //deed //of //trust //is //called //the?
Reverse //mortgage //means //that //house //DOES //NOT //have //to //be //payed //of, //be //a //certain //age
//62-65, //the //bank //is //paying //you, //instead //of //you //paying //the //bank. //The //bank //will //take
//over //the //house, //but //they //can //not //make //you //move //in //the //state //of //Texas. //- //CORRECT
ANSWERS(S)✔✔
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// // // // // //
With Correct Answers
// // // //
Counteroffer //- //CORRECT //ANSWERS(S)✔✔A //buyer //makes //an //offer, //the //seller //wants //to
//accept //the //offer //if //the //buyer //will //agree //to //a //change //in //price. //In //these //circumstances,
//the //seller //will //give //the //buyer //a
Statute //of //Frauds //- //CORRECT //ANSWERS(S)✔✔What //law //requires //certain //types //of
//contracts //to //be //enforceable?
Addresses //in //the //sales //contract //- //CORRECT //ANSWERS(S)✔✔the //buyer //and //the //seller
//have //agreed //that //the //seller //will //remove //a //huge //birdbath //in //the //backyard //before //the
//buyer //takes //possession //of //the //property. //This //agreement //should //be
Rectangular //government //survey //system //- //CORRECT //ANSWERS(S)✔✔Which //method //of
//providing //legal //description //uses //north-south //and //east-west //lines //to //describe //the
//location //of //the //property?
Void //- //CORRECT //ANSWERS(S)✔✔When //a //contract //is //unenforceable //because //it //does //not
//fulfill //the //statutory //requirements //it //is
It //serves //as //a //remedy //of //default //- //CORRECT //ANSWERS(S)✔✔Which //of //the //following //is
//TRUE //regarding //earnest //money?
Breach //of //contract //by //the //other //party //- //CORRECT //ANSWERS(S)✔✔Suit //for //specific
//performance //is //an //action //one //party //can //take //in //the //event //of
, They //must //be //used //by //real //estate //license //holders //in //all //transactions //to //which //the //forms
//are //applicable //unless //one //of //four //exceptions //apply //- //CORRECT //ANSWERS(S)✔✔Which //of
//the //following //is //TRUE //about //TREC-promulgated //contract //forms?
Contingency //- //CORRECT //ANSWERS(S)✔✔The //sales //contract //says //the //buyer //will //purchase
//only //if //the //buyers //current //home //closes //within //the //next //30 //days. //This //is //called
Has //equitable //title //in //the //property //- //CORRECT //ANSWERS(S)✔✔A //buyer //purchases //a
//home //under //a //land //contract. //until //the //contract //is //paid //in //full, //the //buyer
(Private //mortgage //insurance //(PMI) //for //conventional //mortgage, //to //avoid //pmi //on //a
//conventional //there //has //to //be //20% //down //on //a //conventional //loan, //the //lender //may
require //to //have //PMI //on //20% //of //the //loan //amount. //- //CORRECT //ANSWERS(S)✔✔
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VA //Loans //- //CORRECT //ANSWERS(S)✔✔What //is //the //certificate //of //eligibility //for?
Certificate //for //eligibility //- //CORRECT //ANSWERS(S)✔✔All //of //the //following //is //required //for
//FHA //except
Yes, //and //it //would //void //the //contract //- //CORRECT //ANSWERS(S)✔✔If //the //seller //accepts //an
//offer, //can //they //later //claim //that //they //were //in //un-due //duress?
Trustor //- //CORRECT //ANSWERS(S)✔✔The //Borrower //under //a //deed //of //trust //is //called //the?
Reverse //mortgage //means //that //house //DOES //NOT //have //to //be //payed //of, //be //a //certain //age
//62-65, //the //bank //is //paying //you, //instead //of //you //paying //the //bank. //The //bank //will //take
//over //the //house, //but //they //can //not //make //you //move //in //the //state //of //Texas. //- //CORRECT
ANSWERS(S)✔✔
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