AYPO Real Estate Law of Contracts Exam 2025
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A tenant abandoning a leased property without providing proper notice or doing
so under a previously negotiated reason, is not released from their obligations. ---
------CORRECT ANSWER-----------------TRUE
What type of contracts are options generally considered to be? ---------CORRECT
ANSWER-----------------Unilateral
A contract for deed is also known as: ---------CORRECT ANSWER-----------------1.
Installment sales contract
2. Real estate contract
An advantage to buyers in a lease-purchase option is that: ---------CORRECT
ANSWER-----------------It can be easier to get a difficult to qualify buyer into a home
with a lower down payment.
,The real estate sales contract becomes an offer as soon as: ---------CORRECT
ANSWER-----------------It has been prepared and signed by the purchaser.
At what point has an acceptance of an offer been completed? ---------CORRECT
ANSWER-----------------Once the offeror has been notified of the offeree's
acceptance.
A __________ clause states that a contract remains valid even if one provision of
the contract is rendered invalid. ---------CORRECT ANSWER-----------------
Severability
Which of these IS NOT one of the major types of REITs? ---------CORRECT ANSWER-
----------------Commercial
Buyer's agents aware of a "stigma." i.e., psychologically impactful event, on a
property are required to disclose the stigma. ---------CORRECT ANSWER---------------
--FALSE
Buyer A purchases home from Seller B, but the home burns down the week
before closing - the cause a cigarette dropped by A during a walk-through. As a
result: ---------CORRECT ANSWER-----------------A likely is obligated to complete the
purchase because the damage was A's fault.
,Which of these IS NOT listed as a potential damages item for wrongfully failing or
refusing to sign a release acceptable to the escrow agent within 7 days of receipt
of the request? ---------CORRECT ANSWER-----------------Broker's fees
In what instances may parol (oral) evidence be used to dispute a contractual
obligation? ---------CORRECT ANSWER-----------------When a party made promises
that they never intended to fulfill but used to induced the other party to sign the
contract
Which of these is not a common defense to breach of contract? ---------CORRECT
ANSWER-----------------Novation
Damages that are accounted for in advance by agreeing to a specific amount of
compensation should the anticipated event occur, are referred to as: ---------
CORRECT ANSWER-----------------Liquidated damages
A "cloud" on a title means: ---------CORRECT ANSWER-----------------There is a
possibility of another person or entity having a claim on the property.
An amendment must always reference: ---------CORRECT ANSWER-----------------1.
The original contract.
, 2. Names of the parties.
3. Dates of ratification.
Promulgated addenda forms may be found in Paragraph 22 of which addendum
form? ---------CORRECT ANSWER-----------------One to Four Family Residential
Contract (Resale)
The major distinction between "lien theory" and "title theory" states is: ---------
CORRECT ANSWER-----------------in lien theory states, the borrower holds title, and
in title theory states, the lender holds the title.
Hypothecation is: ---------CORRECT ANSWER-----------------The process of a buyer
signing a promissory note to repay a debt and the lender taking an underlying
equitable right in the property.
A promissory note is: ---------CORRECT ANSWER-----------------A promise to pay a
debt.
The Deed of Trust is easier to foreclose on because: ---------CORRECT ANSWER------
-----------The Deed of Trust is held by a third party.
| All Questions and Correct Answers | Graded
A+ | Verified Answers | Latest Version (Just
Released)
A tenant abandoning a leased property without providing proper notice or doing
so under a previously negotiated reason, is not released from their obligations. ---
------CORRECT ANSWER-----------------TRUE
What type of contracts are options generally considered to be? ---------CORRECT
ANSWER-----------------Unilateral
A contract for deed is also known as: ---------CORRECT ANSWER-----------------1.
Installment sales contract
2. Real estate contract
An advantage to buyers in a lease-purchase option is that: ---------CORRECT
ANSWER-----------------It can be easier to get a difficult to qualify buyer into a home
with a lower down payment.
,The real estate sales contract becomes an offer as soon as: ---------CORRECT
ANSWER-----------------It has been prepared and signed by the purchaser.
At what point has an acceptance of an offer been completed? ---------CORRECT
ANSWER-----------------Once the offeror has been notified of the offeree's
acceptance.
A __________ clause states that a contract remains valid even if one provision of
the contract is rendered invalid. ---------CORRECT ANSWER-----------------
Severability
Which of these IS NOT one of the major types of REITs? ---------CORRECT ANSWER-
----------------Commercial
Buyer's agents aware of a "stigma." i.e., psychologically impactful event, on a
property are required to disclose the stigma. ---------CORRECT ANSWER---------------
--FALSE
Buyer A purchases home from Seller B, but the home burns down the week
before closing - the cause a cigarette dropped by A during a walk-through. As a
result: ---------CORRECT ANSWER-----------------A likely is obligated to complete the
purchase because the damage was A's fault.
,Which of these IS NOT listed as a potential damages item for wrongfully failing or
refusing to sign a release acceptable to the escrow agent within 7 days of receipt
of the request? ---------CORRECT ANSWER-----------------Broker's fees
In what instances may parol (oral) evidence be used to dispute a contractual
obligation? ---------CORRECT ANSWER-----------------When a party made promises
that they never intended to fulfill but used to induced the other party to sign the
contract
Which of these is not a common defense to breach of contract? ---------CORRECT
ANSWER-----------------Novation
Damages that are accounted for in advance by agreeing to a specific amount of
compensation should the anticipated event occur, are referred to as: ---------
CORRECT ANSWER-----------------Liquidated damages
A "cloud" on a title means: ---------CORRECT ANSWER-----------------There is a
possibility of another person or entity having a claim on the property.
An amendment must always reference: ---------CORRECT ANSWER-----------------1.
The original contract.
, 2. Names of the parties.
3. Dates of ratification.
Promulgated addenda forms may be found in Paragraph 22 of which addendum
form? ---------CORRECT ANSWER-----------------One to Four Family Residential
Contract (Resale)
The major distinction between "lien theory" and "title theory" states is: ---------
CORRECT ANSWER-----------------in lien theory states, the borrower holds title, and
in title theory states, the lender holds the title.
Hypothecation is: ---------CORRECT ANSWER-----------------The process of a buyer
signing a promissory note to repay a debt and the lender taking an underlying
equitable right in the property.
A promissory note is: ---------CORRECT ANSWER-----------------A promise to pay a
debt.
The Deed of Trust is easier to foreclose on because: ---------CORRECT ANSWER------
-----------The Deed of Trust is held by a third party.
