Law of Contracts Champions Test Exam
Questions and Answers
Wrongful or criminal deception intended to result in financial or personal
gain is called: - ANSWER>>fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a
lease period not to exceed: - ANSWER>>90 days
__________ extend above the surface without limitation. - ANSWER>>air
rights
An example(s) of an appurtenance would be: - ANSWER>>easements
There is no upper limit on the value of a Texas homestead. - ANSWER>>true
A(n) __________ is one that combines some of the elements of a sale with a
lease. - ANSWER>>lease purchase agreement
Which of the following requires a contract for the conveyance of real estate
to be in writing to be enforceable? - ANSWER>>statute of frauds
If a broker receives more than one offer on a property: - ANSWER>>All must
be presented to the seller unless the seller has instructed the broker
otherwise
The most common form of financing used by buyers is: - ANSWER>>third
party financing
A(n) __________ is a provision in a contract that requires that a certain act or
event happens in order for the contract to be binding on the party. -
ANSWER>>contingency
, The Lead-Based Paint Disclosure is: - ANSWER>>A federal requirement for
residential property built prior to 1978
In Texas, real estate contracts are subject to satisfactory inspections. -
ANSWER>>false
The term __________ is synonymous with contingent. - ANSWER>>subject to
Real estate agents play a role that includes arranging for the pre-qualification
/ pre-approval of buyers. - ANSWER>>true
Rule P-53 of the Texas Department of Insurance states that Title Companies:
- ANSWER>>Cannot provide food and beverages for a picnic for a single firm,
Cannot provide an annual party for a single firm, Cannot provide continuing
education classes unless they charge the market rate for those classes
Bill is the buyer purchasing a property from Sally. All contingencies have been
met and the parties are ready to close. One day prior to closing, Sally
announces that she has changed her mind and is going to keep the property.
Bill is determined to complete the purchase and acquire the property. The
only default remedy in the contract that could result in Bill acquiring the
property is___________________________. - ANSWER>>specific
performance
Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a
contract. The seller told Elmer that he wanted to stay in the property for at
least a week after closing. Elmer said that would be no problem and entered
the following text to Paragraph 11: "Seller and Buyer agree that Seller will
remain in the Property for 7 days after closing and funding." In this case,
Elmer has: - ANSWER>>Engaged in the unlawful practice of law
The four economic characteristics of land are: scarcity, fixity, situs and
________. - ANSWER>>modification
Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a
property that is listed for $199,500. In a recent phone conversation, the
Questions and Answers
Wrongful or criminal deception intended to result in financial or personal
gain is called: - ANSWER>>fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a
lease period not to exceed: - ANSWER>>90 days
__________ extend above the surface without limitation. - ANSWER>>air
rights
An example(s) of an appurtenance would be: - ANSWER>>easements
There is no upper limit on the value of a Texas homestead. - ANSWER>>true
A(n) __________ is one that combines some of the elements of a sale with a
lease. - ANSWER>>lease purchase agreement
Which of the following requires a contract for the conveyance of real estate
to be in writing to be enforceable? - ANSWER>>statute of frauds
If a broker receives more than one offer on a property: - ANSWER>>All must
be presented to the seller unless the seller has instructed the broker
otherwise
The most common form of financing used by buyers is: - ANSWER>>third
party financing
A(n) __________ is a provision in a contract that requires that a certain act or
event happens in order for the contract to be binding on the party. -
ANSWER>>contingency
, The Lead-Based Paint Disclosure is: - ANSWER>>A federal requirement for
residential property built prior to 1978
In Texas, real estate contracts are subject to satisfactory inspections. -
ANSWER>>false
The term __________ is synonymous with contingent. - ANSWER>>subject to
Real estate agents play a role that includes arranging for the pre-qualification
/ pre-approval of buyers. - ANSWER>>true
Rule P-53 of the Texas Department of Insurance states that Title Companies:
- ANSWER>>Cannot provide food and beverages for a picnic for a single firm,
Cannot provide an annual party for a single firm, Cannot provide continuing
education classes unless they charge the market rate for those classes
Bill is the buyer purchasing a property from Sally. All contingencies have been
met and the parties are ready to close. One day prior to closing, Sally
announces that she has changed her mind and is going to keep the property.
Bill is determined to complete the purchase and acquire the property. The
only default remedy in the contract that could result in Bill acquiring the
property is___________________________. - ANSWER>>specific
performance
Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a
contract. The seller told Elmer that he wanted to stay in the property for at
least a week after closing. Elmer said that would be no problem and entered
the following text to Paragraph 11: "Seller and Buyer agree that Seller will
remain in the Property for 7 days after closing and funding." In this case,
Elmer has: - ANSWER>>Engaged in the unlawful practice of law
The four economic characteristics of land are: scarcity, fixity, situs and
________. - ANSWER>>modification
Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a
property that is listed for $199,500. In a recent phone conversation, the
