AYPO Real Estate Principles
AYPO Real Estate Law Of Contracts Final Exam Review
Questions & Answers New Edition
1. Forms published and promoted by the TREC for use in the Texas real estate profession are referred to
as: - ANSWER ✔ - Promulgated forms
2. The Texas Real Estate Commission (TREC) is a ___-member commission appointed by the governor
with the advice and consent of the senate for overlapping ___-year terms. - ANSWER ✔ - 9, 6
3. Contract law presents a particularly high risk of the unauthorized practice of law when a licensee
chooses to do which of the following? - ANSWER ✔ - Create their own contract forms.
4. The Broker-Lawyer Committee: - ANSWER ✔ - Drafts and revises contract forms for use by real estate
licensees.
5. The TREC Promulgated One to Four Family Residential Contract (Resale) can be identified by the: -
ANSWER ✔ - Date in the upper right corner and the ID number in the lower right corner.
6. In order to recover damages under the DTPA, the consumer has to show that the information was
withheld: - ANSWER ✔ - With intent to induce the consumer into a transaction.
7. Which of these is a common type of law encountered in the real estate profession? - ANSWER ✔ - 1.
Real property vs. personal property
2. Fiduciary duties and handling of client finances
3. Consumer protection
8. The term real property refers to: - ANSWER ✔ - 1. Earth's surface
2. Airspace
1
AYPO Real Estate Principles
, AYPO Real Estate Principles
3. Subsurface
9. Which of these IS NOT one of the basic five tests to determine if an object or item is a fixture? -
ANSWER ✔ - Size of the object
10. Which of these is not a physical characteristic of real property? - ANSWER ✔ - Scarcity
11. Which of these forms of ownership allows for unequal interests between the owners? - ANSWER ✔ -
Tenancy in Common
12. Which of these forms of business provide protection from personal liability? - ANSWER ✔ - 1.
Corporations
2. LLCs
13. A housing cooperative is a co-op that: - ANSWER ✔ - Owns real property, usually residential
14. Which of these professions is NOT regulated by the TREC? - ANSWER ✔ - Home mortgage lenders
15. Which of these is an element necessary to form a contract? - ANSWER ✔ - 1. Legal Purpose
2. Offer
3. Consideration
16. A contract often created by a court based on the actions of the parties and not on a written
agreement is called a(n): - ANSWER ✔ - Implied contract
17. Once a party has purchased an option to buy: - ANSWER ✔ - They have the choice to complete the
purchase within the option period or to pass without further obligation.
2
AYPO Real Estate Principles
AYPO Real Estate Law Of Contracts Final Exam Review
Questions & Answers New Edition
1. Forms published and promoted by the TREC for use in the Texas real estate profession are referred to
as: - ANSWER ✔ - Promulgated forms
2. The Texas Real Estate Commission (TREC) is a ___-member commission appointed by the governor
with the advice and consent of the senate for overlapping ___-year terms. - ANSWER ✔ - 9, 6
3. Contract law presents a particularly high risk of the unauthorized practice of law when a licensee
chooses to do which of the following? - ANSWER ✔ - Create their own contract forms.
4. The Broker-Lawyer Committee: - ANSWER ✔ - Drafts and revises contract forms for use by real estate
licensees.
5. The TREC Promulgated One to Four Family Residential Contract (Resale) can be identified by the: -
ANSWER ✔ - Date in the upper right corner and the ID number in the lower right corner.
6. In order to recover damages under the DTPA, the consumer has to show that the information was
withheld: - ANSWER ✔ - With intent to induce the consumer into a transaction.
7. Which of these is a common type of law encountered in the real estate profession? - ANSWER ✔ - 1.
Real property vs. personal property
2. Fiduciary duties and handling of client finances
3. Consumer protection
8. The term real property refers to: - ANSWER ✔ - 1. Earth's surface
2. Airspace
1
AYPO Real Estate Principles
, AYPO Real Estate Principles
3. Subsurface
9. Which of these IS NOT one of the basic five tests to determine if an object or item is a fixture? -
ANSWER ✔ - Size of the object
10. Which of these is not a physical characteristic of real property? - ANSWER ✔ - Scarcity
11. Which of these forms of ownership allows for unequal interests between the owners? - ANSWER ✔ -
Tenancy in Common
12. Which of these forms of business provide protection from personal liability? - ANSWER ✔ - 1.
Corporations
2. LLCs
13. A housing cooperative is a co-op that: - ANSWER ✔ - Owns real property, usually residential
14. Which of these professions is NOT regulated by the TREC? - ANSWER ✔ - Home mortgage lenders
15. Which of these is an element necessary to form a contract? - ANSWER ✔ - 1. Legal Purpose
2. Offer
3. Consideration
16. A contract often created by a court based on the actions of the parties and not on a written
agreement is called a(n): - ANSWER ✔ - Implied contract
17. Once a party has purchased an option to buy: - ANSWER ✔ - They have the choice to complete the
purchase within the option period or to pass without further obligation.
2
AYPO Real Estate Principles
