Texas Promulgated Forms - Real Estate
Exam with Correct Answers
The six elements of a valid real estate contract - Answer- Competent parties
Consideration
Mutual agreement (mutual assent)
Lawful objective
In writing and signed by the parties
Contain a legal description
Competent Parties - Answer- a person who is at least 18 years old, sane, and sober
Consideration - Answer- Something, usually money, is being given in exchange for
something else
Mutual Agreement (Mutual Assent) - Answer- parties must enter the contract freely and
voluntarily
Lawful Objective - Answer- Concerns the provisions of an agreement, which must call
for lawful activity. A provision that does not comply with federal, state, or local law
cannot be upheld by a court.
Statute of Frauds - Answer- requires that, to be enforceable, all agreements affecting
title to or interest in real estate in Texas be in writing and signed by the parties
Legal description - Answer- (1) reference to a recorded plat (lot, block, section number,
subdivision name)
(2) metes and bounds
Void Contract - Answer- Not a contract at all; void means the absence of something
Unenforceable contract - Answer- An agreement that had all six elements at the time it
became an executory contract but, due to a change in conditions, no longer meets the
requirements of law and no longer can be upheld by a court
Voidable Contract - Answer- Set aside at the option of one of the contracting parties.
Examples:
entered into with a minor; Fraudulent; missing written consent
Executory contract - Answer- An enforceable contract that is in the process of being
performed or fulfilled, once fufilled it becomes an Executed Contract
Executed (enforcable) Contract - Answer- When closing and funding occur, all parties
have fulfilled all promises made in agreement, and deed has been delivered.
Exam with Correct Answers
The six elements of a valid real estate contract - Answer- Competent parties
Consideration
Mutual agreement (mutual assent)
Lawful objective
In writing and signed by the parties
Contain a legal description
Competent Parties - Answer- a person who is at least 18 years old, sane, and sober
Consideration - Answer- Something, usually money, is being given in exchange for
something else
Mutual Agreement (Mutual Assent) - Answer- parties must enter the contract freely and
voluntarily
Lawful Objective - Answer- Concerns the provisions of an agreement, which must call
for lawful activity. A provision that does not comply with federal, state, or local law
cannot be upheld by a court.
Statute of Frauds - Answer- requires that, to be enforceable, all agreements affecting
title to or interest in real estate in Texas be in writing and signed by the parties
Legal description - Answer- (1) reference to a recorded plat (lot, block, section number,
subdivision name)
(2) metes and bounds
Void Contract - Answer- Not a contract at all; void means the absence of something
Unenforceable contract - Answer- An agreement that had all six elements at the time it
became an executory contract but, due to a change in conditions, no longer meets the
requirements of law and no longer can be upheld by a court
Voidable Contract - Answer- Set aside at the option of one of the contracting parties.
Examples:
entered into with a minor; Fraudulent; missing written consent
Executory contract - Answer- An enforceable contract that is in the process of being
performed or fulfilled, once fufilled it becomes an Executed Contract
Executed (enforcable) Contract - Answer- When closing and funding occur, all parties
have fulfilled all promises made in agreement, and deed has been delivered.
