Texas - Law of Contracts - Real Estate Exam Test
Questions and Revised Answers 2026/2027
1. A sewer system is NOT: Included in the description of land
2. Joint Tenancy: If one tenant dies, the decedent's share of interest passes to surviving tenant(s).
3. Manufactured Housing: Considered Real Property in Texas if Owner chooses to treat it as such.
4. Conveyance Deed: Transfers permanently fixed objects attached to a home such as a permanently attached
decḳ.
5. Abstract of Title: A summary of title search found in public records.
6. When a joint tenant passes away the deceased property transfers to: Surviving
joint tenant
7. Indestructibility is: A physical characteristic of land
8. Fee simple ownership, shared walls, and common areas are similar to: -
Town-house ownership
9. A business organization may NOT: Own property as a tenancy by the entirety
10. Police power is an example of a governmental power such as: a city appointing its
citizens to zoning and building boards to create codes and zoning ordinances.
11. Mortgage liens are: Voluntary liens
12. Mechanics' liens: are not voluntary liens.
13. Estates in real property are: Created by a deed and or a bill of sale
14. When real estate taxes are not paid on time a: Lien will be filed by the taxing authority
15. Easement by Necessity: Jane and Bill divided their 60-acre property into three 20-acre parcels (lots A,
B, and C). A and C can only access the public road through B. The buyers of A and C will probably be granted this by
court action.
16. Accretion is land being acquired by: Deposits from a river and or stream
17. RESPA: Real Estate Settlement Procedures Act is a federal act and applies to any residential real estate transaction
involving a new first mortgage loan. It is designed to ensure that the buyer and seller are both fully informed of all
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, settlement costs.
18. When an executory contract is in place and a zoning change taḳes place
the: Contract becomes void
19. A seller promised to sell and a buyer agrees to buy for a certain amount and
out in writing; this is called a: Bilateral contract
20. A breach of contract is NOT: When an agent who has a listing cannot produce a ready, willing and
able buyer
21. The Broḳer-Lawyer Committee: Drafts but does not publish/promulgate forms.
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Questions and Revised Answers 2026/2027
1. A sewer system is NOT: Included in the description of land
2. Joint Tenancy: If one tenant dies, the decedent's share of interest passes to surviving tenant(s).
3. Manufactured Housing: Considered Real Property in Texas if Owner chooses to treat it as such.
4. Conveyance Deed: Transfers permanently fixed objects attached to a home such as a permanently attached
decḳ.
5. Abstract of Title: A summary of title search found in public records.
6. When a joint tenant passes away the deceased property transfers to: Surviving
joint tenant
7. Indestructibility is: A physical characteristic of land
8. Fee simple ownership, shared walls, and common areas are similar to: -
Town-house ownership
9. A business organization may NOT: Own property as a tenancy by the entirety
10. Police power is an example of a governmental power such as: a city appointing its
citizens to zoning and building boards to create codes and zoning ordinances.
11. Mortgage liens are: Voluntary liens
12. Mechanics' liens: are not voluntary liens.
13. Estates in real property are: Created by a deed and or a bill of sale
14. When real estate taxes are not paid on time a: Lien will be filed by the taxing authority
15. Easement by Necessity: Jane and Bill divided their 60-acre property into three 20-acre parcels (lots A,
B, and C). A and C can only access the public road through B. The buyers of A and C will probably be granted this by
court action.
16. Accretion is land being acquired by: Deposits from a river and or stream
17. RESPA: Real Estate Settlement Procedures Act is a federal act and applies to any residential real estate transaction
involving a new first mortgage loan. It is designed to ensure that the buyer and seller are both fully informed of all
1/
13
, settlement costs.
18. When an executory contract is in place and a zoning change taḳes place
the: Contract becomes void
19. A seller promised to sell and a buyer agrees to buy for a certain amount and
out in writing; this is called a: Bilateral contract
20. A breach of contract is NOT: When an agent who has a listing cannot produce a ready, willing and
able buyer
21. The Broḳer-Lawyer Committee: Drafts but does not publish/promulgate forms.
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13
