Tx 30 Hr Law of Contracts Practice Exam Question & Answers Latest Updated
Tx 30 Hr Law of Contracts Practice
Exam Question & Answers Latest
Updated
Your buyer client, Jacob, is planning to obtain financing for a new home. What should his first step be? -
ANSWER ✔ - Obtain a pre-qualification letter.
Sondra thinks the new business contract she signed with her business partner is valid. Both parties are
legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has
been negotiated and documented. Which essential element of a valid contract has Sondra not yet
considered? - ANSWER ✔ - Whether consent was voluntary
The borrower is charged ______ for all FHA loans. - ANSWER ✔ - Mortgage insurance premium
Hank leases 150 acres from Sara and Jesse. He has an option contract attached to his lease, with an
option to purchase that can be exercised within the next two years. What type of contract is this? -
ANSWER ✔ - Unilateral
At the closing of a sales transaction, which parties close on the brokerage agreement? - ANSWER ✔ -
Buyer and seller agents
The terms of a person's will are subject to ______. - ANSWER ✔ - Operation of law
When the buyer's repair addendum included adding a new wing, the seller balked. The buyer then
terminated. This is an example of ________. - ANSWER ✔ - Rescinding the contract unilaterally
, Tx 30 Hr Law of Contracts Practice Exam Question & Answers Latest Updated
Physical characteristics of land include its immobility, indestructibility, and ______. - ANSWER ✔ -
Uniqueness (nonhomogeneity)
How many members does TREC appoint to the Broker-Lawyer Committee? - ANSWER ✔ - Six
What type of interest involves the property ownership going back to the original owner at the end of the
life estate? - ANSWER ✔ - Reversionary interest
Which type of an estate doesn't end automatically when the stated event or condition occurs? -
ANSWER ✔ - Fee simple subject to a condition subsequent
As part of the terms of the sales contract, the seller was supposed to provide a copy of the seller's
disclosure but failed to do so. What type of contract is this? - ANSWER ✔ - Voidable
Identify the correct order of the loan approval process. - ANSWER ✔ - Pre-qualification, loan application,
mortgage commitment
When a buyer assumes a seller's loan, who may be held responsible for repayment of the debt? -
ANSWER ✔ - Buyer and seller
Which of the following is a guideline used by Fannie Mae and Freddie Mac when determining if a loan is
conforming? - ANSWER ✔ - Down payment
The seller's disclosure notice is a required form by Texas law; however, it is not ______ by TREC. -
ANSWER ✔ - Promulgated
The right to use the property and to live or work there is known as _____________. - ANSWER ✔ -
Possession
Tx 30 Hr Law of Contracts Practice
Exam Question & Answers Latest
Updated
Your buyer client, Jacob, is planning to obtain financing for a new home. What should his first step be? -
ANSWER ✔ - Obtain a pre-qualification letter.
Sondra thinks the new business contract she signed with her business partner is valid. Both parties are
legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has
been negotiated and documented. Which essential element of a valid contract has Sondra not yet
considered? - ANSWER ✔ - Whether consent was voluntary
The borrower is charged ______ for all FHA loans. - ANSWER ✔ - Mortgage insurance premium
Hank leases 150 acres from Sara and Jesse. He has an option contract attached to his lease, with an
option to purchase that can be exercised within the next two years. What type of contract is this? -
ANSWER ✔ - Unilateral
At the closing of a sales transaction, which parties close on the brokerage agreement? - ANSWER ✔ -
Buyer and seller agents
The terms of a person's will are subject to ______. - ANSWER ✔ - Operation of law
When the buyer's repair addendum included adding a new wing, the seller balked. The buyer then
terminated. This is an example of ________. - ANSWER ✔ - Rescinding the contract unilaterally
, Tx 30 Hr Law of Contracts Practice Exam Question & Answers Latest Updated
Physical characteristics of land include its immobility, indestructibility, and ______. - ANSWER ✔ -
Uniqueness (nonhomogeneity)
How many members does TREC appoint to the Broker-Lawyer Committee? - ANSWER ✔ - Six
What type of interest involves the property ownership going back to the original owner at the end of the
life estate? - ANSWER ✔ - Reversionary interest
Which type of an estate doesn't end automatically when the stated event or condition occurs? -
ANSWER ✔ - Fee simple subject to a condition subsequent
As part of the terms of the sales contract, the seller was supposed to provide a copy of the seller's
disclosure but failed to do so. What type of contract is this? - ANSWER ✔ - Voidable
Identify the correct order of the loan approval process. - ANSWER ✔ - Pre-qualification, loan application,
mortgage commitment
When a buyer assumes a seller's loan, who may be held responsible for repayment of the debt? -
ANSWER ✔ - Buyer and seller
Which of the following is a guideline used by Fannie Mae and Freddie Mac when determining if a loan is
conforming? - ANSWER ✔ - Down payment
The seller's disclosure notice is a required form by Texas law; however, it is not ______ by TREC. -
ANSWER ✔ - Promulgated
The right to use the property and to live or work there is known as _____________. - ANSWER ✔ -
Possession
