Law of Contracts - CHAMPIONS TEST
________ are changes that are made to the original contract, such as changes to the
closing date or changes to the sales price, down payment and/or the amount
financed. - ANS ✔amendments
________ is evidence an individual has of his or her right to possess land. - ANS
✔Probate
________ is the legal procedure whereby secured property may be sold to satisfy a
borrower's unpaid promissory note. - ANS ✔foreclosure
________ is the right of the government to regulate and control the way land is used.
- ANS ✔police power
________ law is a body of law based on "common sense" and local custom. - ANS
✔common
________ of an offer means that the accepting party does so with no change to the
contract whatsoever. - ANS ✔acceptance
__________ extend above the surface without limitation. - ANS ✔air rights
A ________ is a deed with no guarantees or warranties. - ANS ✔quitclaim deed
A ________ is the borrower's unconditional promise to repay the lender. - ANS
✔Promissory note
A "Section 502 Loan" is insured by the ________. - ANS ✔USDA
A claim, lien, charge, or liability attached to and binding real property is a(n)
________. - ANS ✔encumbrance
A contract in which only one party is obligated to perform is a________ contract. -
ANS ✔unilateral
A loan assumption might be desirable because: - ANS ✔The loan assumption is
generally less costly than a new loan
, A seller is going to continue to occupy a property for two days after closing. In this
case, the parties should use the Buyer's Temporary Residential Lease form. - ANS
✔false
A seller of coastal property abutting tidally influenced water must provide the
________. - ANS ✔Notice Regarding Coastal Area Property
A(n) ________ is a business venture that is owned by one individual. - ANS ✔Sole
proprietorship
A(n) ________ is a listing in which the real estate broker's commission is the
difference between the minimum net established by the seller and the price that the
buyer is willing to pay. - ANS ✔net listing
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. - ANS ✔waiver
A(n) ________ mortgage covers more than one piece of property. - ANS ✔blanket
A(n) ________ occurs when a new contract is substituted for an existing one. - ANS
✔novation
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. - ANS ✔contingency
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. - ANS ✔contract for deed
A(n) __________ is an agreement between two or more parties to do something or to
refrain from doing something. - ANS ✔contract
A(n) __________ is one that combines some of the elements of a sale with a lease. -
ANS ✔lease purchase agreement
According to the Deceptive Trade Practices Act (DTPA), brokerage falls under the
category of ________. - ANS ✔services
An abstract of title is: - ANS ✔a complete written history of title
An example(s) of an appurtenance would be: - ANS ✔easements
An offer may be withdrawn at any time prior to its acceptance by the offeree - ANS
✔true
________ are changes that are made to the original contract, such as changes to the
closing date or changes to the sales price, down payment and/or the amount
financed. - ANS ✔amendments
________ is evidence an individual has of his or her right to possess land. - ANS
✔Probate
________ is the legal procedure whereby secured property may be sold to satisfy a
borrower's unpaid promissory note. - ANS ✔foreclosure
________ is the right of the government to regulate and control the way land is used.
- ANS ✔police power
________ law is a body of law based on "common sense" and local custom. - ANS
✔common
________ of an offer means that the accepting party does so with no change to the
contract whatsoever. - ANS ✔acceptance
__________ extend above the surface without limitation. - ANS ✔air rights
A ________ is a deed with no guarantees or warranties. - ANS ✔quitclaim deed
A ________ is the borrower's unconditional promise to repay the lender. - ANS
✔Promissory note
A "Section 502 Loan" is insured by the ________. - ANS ✔USDA
A claim, lien, charge, or liability attached to and binding real property is a(n)
________. - ANS ✔encumbrance
A contract in which only one party is obligated to perform is a________ contract. -
ANS ✔unilateral
A loan assumption might be desirable because: - ANS ✔The loan assumption is
generally less costly than a new loan
, A seller is going to continue to occupy a property for two days after closing. In this
case, the parties should use the Buyer's Temporary Residential Lease form. - ANS
✔false
A seller of coastal property abutting tidally influenced water must provide the
________. - ANS ✔Notice Regarding Coastal Area Property
A(n) ________ is a business venture that is owned by one individual. - ANS ✔Sole
proprietorship
A(n) ________ is a listing in which the real estate broker's commission is the
difference between the minimum net established by the seller and the price that the
buyer is willing to pay. - ANS ✔net listing
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. - ANS ✔waiver
A(n) ________ mortgage covers more than one piece of property. - ANS ✔blanket
A(n) ________ occurs when a new contract is substituted for an existing one. - ANS
✔novation
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. - ANS ✔contingency
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. - ANS ✔contract for deed
A(n) __________ is an agreement between two or more parties to do something or to
refrain from doing something. - ANS ✔contract
A(n) __________ is one that combines some of the elements of a sale with a lease. -
ANS ✔lease purchase agreement
According to the Deceptive Trade Practices Act (DTPA), brokerage falls under the
category of ________. - ANS ✔services
An abstract of title is: - ANS ✔a complete written history of title
An example(s) of an appurtenance would be: - ANS ✔easements
An offer may be withdrawn at any time prior to its acceptance by the offeree - ANS
✔true
