LAW OF CONTRACTS CHAMPIONS EXAM, EXAM AND
STUDY GUIDE | ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS) 2026/2027
|ALREADY GRADED A+
Which of the following is a physical characteristic of land? - ANSWER-
-
indestructability
Which disclosure is provided to comply with federal requirements for
properties built before 1978? - ANSWER--Lead-Based Paint Disclosure
If the loan factor is $4.49 and the loan amount is $357,500, taxes are
$7300/year and the insurance is $3103 per year, what is the monthly
PITI payment? - ANSWER--$2,472.09
A loan assumption might be desirable because: - ANSWER--The loan
assumption is generally less costly than a new loan
,When a party is considering consulting an attorney for advice in a
transaction an agent should: - ANSWER--Never discourage the use of
an
attorney
Prior to closing, severe damage to or destruction of a property under
contract: - ANSWER--Can result in termination of the contract
The four major types of listing agreements are, exclusive agency, net
listing, exclusive right to sell and __________. - ANSWER--open listing
In a __________ lease, the tenant's rent is based, in whole or in part, on
the receipts of his or her business. - ANSWER--percentage lease A(n)
__________ is a type of seller financing wherein the owner retains title
to the property while the purchaser takes possession of the premises and
pays on the principal. - ANSWER--contract for deed
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. -
ANSWERtrue
Earnest money is deposited in an escrow account when: - ANSWER-The
contract is signed by all parties and acceptance is communicated Jake
(Seller) and Sarah (Buyer) entered into a contract for the sale of Jake's
personal residence. In the contract, Jake promised to deliver a seller's
disclosure of property condition within 5 days of the effective date of the
contract. Jake never delivered the disclosure as promised. Which of the
following statements is true? - ANSWER--Sarah has the right to
terminate the contract and receive a refund of earnest money prior to
closing (Page 24)
Buyers' and sellers' marital status is not required in the contract. -
ANSWER--true
Damage or destruction of a property under contract prior to closing: -
ANSWER--May result in termination of the contract
, 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
When an individual owns real property, he or she is said to have a (n)
__________ in that property. - ANSWER--freehold estate
In Texas, real estate contracts are subject to satisfactory inspections. -
ANSWER--false
The term __________ is synonymous with contingent. -
ANSWERsubject to
Real estate agents play a role that includes arranging for the
prequalification / pre-approval of buyers. - ANSWER--true
STUDY GUIDE | ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS) 2026/2027
|ALREADY GRADED A+
Which of the following is a physical characteristic of land? - ANSWER-
-
indestructability
Which disclosure is provided to comply with federal requirements for
properties built before 1978? - ANSWER--Lead-Based Paint Disclosure
If the loan factor is $4.49 and the loan amount is $357,500, taxes are
$7300/year and the insurance is $3103 per year, what is the monthly
PITI payment? - ANSWER--$2,472.09
A loan assumption might be desirable because: - ANSWER--The loan
assumption is generally less costly than a new loan
,When a party is considering consulting an attorney for advice in a
transaction an agent should: - ANSWER--Never discourage the use of
an
attorney
Prior to closing, severe damage to or destruction of a property under
contract: - ANSWER--Can result in termination of the contract
The four major types of listing agreements are, exclusive agency, net
listing, exclusive right to sell and __________. - ANSWER--open listing
In a __________ lease, the tenant's rent is based, in whole or in part, on
the receipts of his or her business. - ANSWER--percentage lease A(n)
__________ is a type of seller financing wherein the owner retains title
to the property while the purchaser takes possession of the premises and
pays on the principal. - ANSWER--contract for deed
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. -
ANSWERtrue
Earnest money is deposited in an escrow account when: - ANSWER-The
contract is signed by all parties and acceptance is communicated Jake
(Seller) and Sarah (Buyer) entered into a contract for the sale of Jake's
personal residence. In the contract, Jake promised to deliver a seller's
disclosure of property condition within 5 days of the effective date of the
contract. Jake never delivered the disclosure as promised. Which of the
following statements is true? - ANSWER--Sarah has the right to
terminate the contract and receive a refund of earnest money prior to
closing (Page 24)
Buyers' and sellers' marital status is not required in the contract. -
ANSWER--true
Damage or destruction of a property under contract prior to closing: -
ANSWER--May result in termination of the contract
, 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
When an individual owns real property, he or she is said to have a (n)
__________ in that property. - ANSWER--freehold estate
In Texas, real estate contracts are subject to satisfactory inspections. -
ANSWER--false
The term __________ is synonymous with contingent. -
ANSWERsubject to
Real estate agents play a role that includes arranging for the
prequalification / pre-approval of buyers. - ANSWER--true
