Law of Contracts - CHAMPIONS TEST
UPDATED ACTUAL Questions and
CORRECT Answers
Wrongful or criminal deception intended to result in financial or personal gain is called: -
CORRECT ANSWER -fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a lease period not to
exceed: - CORRECT ANSWER -90 days
__________ extend above the surface without limitation. - CORRECT ANSWER -air
rights
An example(s) of an appurtenance would be: - CORRECT ANSWER -easements
There is no upper limit on the value of a Texas homestead. - CORRECT ANSWER -true
A(n) __________ is one that combines some of the elements of a sale with a lease. - CORRECT
ANSWER -lease purchase agreement
Which of the following requires a contract for the conveyance of real estate to be in writing to be
enforceable? - CORRECT ANSWER -statute of frauds
If a broker receives more than one offer on a property: - CORRECT ANSWER -All must
be presented to the seller unless the seller has instructed the broker otherwise
The most common form of financing used by buyers is: - CORRECT ANSWER -third
party financing
, 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. - CORRECT ANSWER -contingency
The Lead-Based Paint Disclosure is: - CORRECT ANSWER -A federal requirement for
residential property built prior to 1978
In Texas, real estate contracts are subject to satisfactory inspections. - CORRECT
ANSWER -false
The term __________ is synonymous with contingent. - CORRECT ANSWER -subject to
Real estate agents play a role that includes arranging for the pre-qualification / pre-approval of
buyers. - CORRECT ANSWER -true
Rule P-53 of the Texas Department of Insurance states that Title Companies: - CORRECT
ANSWER -Cannot provide food and beverages for a picnic for a single firm, Cannot
provide an annual party for a single firm, Cannot provide continuing education classes unless
they charge the market rate for those classes
Bill is the buyer purchasing a property from Sally. All contingencies have been met and the
parties are ready to close. One day prior to closing, Sally announces that she has changed her
mind and is going to keep the property. Bill is determined to complete the purchase and acquire
the property. The only default remedy in the contract that could result in Bill acquiring the
property is___________________________. - CORRECT ANSWER -specific
performance
Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a contract. The seller told
Elmer that he wanted to stay in the property for at least a week after closing. Elmer said that
would be no problem and entered the following text to Paragraph 11: "Seller and Buyer agree
that Seller will remain in the Property for 7 days after closing and funding." In this case, Elmer
has: - CORRECT ANSWER -Engaged in the unlawful practice of law
UPDATED ACTUAL Questions and
CORRECT Answers
Wrongful or criminal deception intended to result in financial or personal gain is called: -
CORRECT ANSWER -fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a lease period not to
exceed: - CORRECT ANSWER -90 days
__________ extend above the surface without limitation. - CORRECT ANSWER -air
rights
An example(s) of an appurtenance would be: - CORRECT ANSWER -easements
There is no upper limit on the value of a Texas homestead. - CORRECT ANSWER -true
A(n) __________ is one that combines some of the elements of a sale with a lease. - CORRECT
ANSWER -lease purchase agreement
Which of the following requires a contract for the conveyance of real estate to be in writing to be
enforceable? - CORRECT ANSWER -statute of frauds
If a broker receives more than one offer on a property: - CORRECT ANSWER -All must
be presented to the seller unless the seller has instructed the broker otherwise
The most common form of financing used by buyers is: - CORRECT ANSWER -third
party financing
, 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. - CORRECT ANSWER -contingency
The Lead-Based Paint Disclosure is: - CORRECT ANSWER -A federal requirement for
residential property built prior to 1978
In Texas, real estate contracts are subject to satisfactory inspections. - CORRECT
ANSWER -false
The term __________ is synonymous with contingent. - CORRECT ANSWER -subject to
Real estate agents play a role that includes arranging for the pre-qualification / pre-approval of
buyers. - CORRECT ANSWER -true
Rule P-53 of the Texas Department of Insurance states that Title Companies: - CORRECT
ANSWER -Cannot provide food and beverages for a picnic for a single firm, Cannot
provide an annual party for a single firm, Cannot provide continuing education classes unless
they charge the market rate for those classes
Bill is the buyer purchasing a property from Sally. All contingencies have been met and the
parties are ready to close. One day prior to closing, Sally announces that she has changed her
mind and is going to keep the property. Bill is determined to complete the purchase and acquire
the property. The only default remedy in the contract that could result in Bill acquiring the
property is___________________________. - CORRECT ANSWER -specific
performance
Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a contract. The seller told
Elmer that he wanted to stay in the property for at least a week after closing. Elmer said that
would be no problem and entered the following text to Paragraph 11: "Seller and Buyer agree
that Seller will remain in the Property for 7 days after closing and funding." In this case, Elmer
has: - CORRECT ANSWER -Engaged in the unlawful practice of law
