Law of Contracts - CHAMPIONS
Wrongful or criminal deception intended to result in financial or personal gain is
called: - ANSWER-fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a
lease period not to exceed: - ANSWER-90 days
__________ extend above the surface without limitation. - ANSWER-air rights
An example(s) of an appurtenance would be: - ANSWER-easements
There is no upper limit on the value of a Texas homestead. - ANSWER-true
A(n) __________ is one that combines some of the elements of a sale with a
lease. - ANSWER-lease purchase agreement
Which of the following requires a contract for the conveyance of real estate to be
in writing to be enforceable? - ANSWER-statute of frauds
If a broker receives more than one offer on a property: - 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: - 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. -
ANSWER-contingency
The Lead-Based Paint Disclosure is: - ANSWER-A federal requirement for
residential property built prior to 1978
,In Texas, real estate contracts are subject to satisfactory inspections. -
ANSWER-false
The term __________ is synonymous with contingent. - ANSWER-subject to
Real estate agents play a role that includes arranging for the pre-qualification /
pre-approval of buyers. - ANSWER-true
Rule P-53 of the Texas Department of Insurance states that Title Companies: -
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___________________________. - 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: -
ANSWER-Engaged in the unlawful practice of law
The four economic characteristics of land are: scarcity, fixity, situs and ________.
- ANSWER-modification
Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a property
that is listed for $199,500. In a recent phone conversation, the seller told Joe he
would accept no less than $185,000 for the property. Knowing the seller's
"bottom line," what should Joe do with the offer? - ANSWER-Joe should present
the offer to the seller
An abstract of title is: - ANSWER-a complete written history of title
,an option is: - ANSWER-a unilateral contract
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. -
ANSWER-false
A contract in which only one party is obligated to perform is a________ contract.
- ANSWER-unilateral
For tax prorations: - ANSWER-If taxes are not paid at or prior to closing the
buyer shall pay for the current year, If taxes for the current year vary from the
amount prorated at closing, the parties shall adjust the prorations when tax
statements for the current year are available, The tax proration may be
calculated taking into consideration any change in the exemptions that will affect
the current year's taxes
________ is the right of the government to regulate and control the way land is
used. - ANSWER-police power
A seller of coastal property abutting tidally influenced water must provide the
________. - ANSWER-Notice Regarding Coastal Area Property
RESPA prohibits ________, which is considered an abusive practice. -
ANSWER-kickbacks
A claim, lien, charge, or liability attached to and binding real property is a(n)
________. - ANSWER-encumbrance
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. - ANSWER-waiver
At closing, the contract is: - ANSWER-fully executed
FHA loans include two mortgage insurance premiums that must be paid by the
borrower. They are the: - ANSWER-UFMIP and Annual Premium
, ________ 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. - ANSWER-amendments
According to the Deceptive Trade Practices Act (DTPA), brokerage falls under
the category of ________. - ANSWER-services
________ law is a body of law based on "common sense" and local custom. -
ANSWER-common
Which kind of rights extend above the surface of property without limitation? -
ANSWER-air rights
________ is the legal procedure whereby secured property may be sold to
satisfy a borrower's unpaid promissory note. - ANSWER-foreclosure
The five essential elements of a valid and enforceable contract are, competent
parties, offer and acceptance, legal purpose, in writing and ________. -
ANSWER-consideration
The SAFE Act mandated the term ________. - ANSWER-Residential Mortgage
Loan Originator
A(n) ________ occurs when a new contract is substituted for an existing one. -
ANSWER-novation
A(n) ________ is a business venture that is owned by one individual. -
ANSWER-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. - ANSWER-net listing
The requirements for a valid lease are, competent parties, let and take
agreement, in writing and ________. - ANSWER-description of the property
Wrongful or criminal deception intended to result in financial or personal gain is
called: - ANSWER-fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a
lease period not to exceed: - ANSWER-90 days
__________ extend above the surface without limitation. - ANSWER-air rights
An example(s) of an appurtenance would be: - ANSWER-easements
There is no upper limit on the value of a Texas homestead. - ANSWER-true
A(n) __________ is one that combines some of the elements of a sale with a
lease. - ANSWER-lease purchase agreement
Which of the following requires a contract for the conveyance of real estate to be
in writing to be enforceable? - ANSWER-statute of frauds
If a broker receives more than one offer on a property: - 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: - 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. -
ANSWER-contingency
The Lead-Based Paint Disclosure is: - ANSWER-A federal requirement for
residential property built prior to 1978
,In Texas, real estate contracts are subject to satisfactory inspections. -
ANSWER-false
The term __________ is synonymous with contingent. - ANSWER-subject to
Real estate agents play a role that includes arranging for the pre-qualification /
pre-approval of buyers. - ANSWER-true
Rule P-53 of the Texas Department of Insurance states that Title Companies: -
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___________________________. - 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: -
ANSWER-Engaged in the unlawful practice of law
The four economic characteristics of land are: scarcity, fixity, situs and ________.
- ANSWER-modification
Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a property
that is listed for $199,500. In a recent phone conversation, the seller told Joe he
would accept no less than $185,000 for the property. Knowing the seller's
"bottom line," what should Joe do with the offer? - ANSWER-Joe should present
the offer to the seller
An abstract of title is: - ANSWER-a complete written history of title
,an option is: - ANSWER-a unilateral contract
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. -
ANSWER-false
A contract in which only one party is obligated to perform is a________ contract.
- ANSWER-unilateral
For tax prorations: - ANSWER-If taxes are not paid at or prior to closing the
buyer shall pay for the current year, If taxes for the current year vary from the
amount prorated at closing, the parties shall adjust the prorations when tax
statements for the current year are available, The tax proration may be
calculated taking into consideration any change in the exemptions that will affect
the current year's taxes
________ is the right of the government to regulate and control the way land is
used. - ANSWER-police power
A seller of coastal property abutting tidally influenced water must provide the
________. - ANSWER-Notice Regarding Coastal Area Property
RESPA prohibits ________, which is considered an abusive practice. -
ANSWER-kickbacks
A claim, lien, charge, or liability attached to and binding real property is a(n)
________. - ANSWER-encumbrance
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. - ANSWER-waiver
At closing, the contract is: - ANSWER-fully executed
FHA loans include two mortgage insurance premiums that must be paid by the
borrower. They are the: - ANSWER-UFMIP and Annual Premium
, ________ 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. - ANSWER-amendments
According to the Deceptive Trade Practices Act (DTPA), brokerage falls under
the category of ________. - ANSWER-services
________ law is a body of law based on "common sense" and local custom. -
ANSWER-common
Which kind of rights extend above the surface of property without limitation? -
ANSWER-air rights
________ is the legal procedure whereby secured property may be sold to
satisfy a borrower's unpaid promissory note. - ANSWER-foreclosure
The five essential elements of a valid and enforceable contract are, competent
parties, offer and acceptance, legal purpose, in writing and ________. -
ANSWER-consideration
The SAFE Act mandated the term ________. - ANSWER-Residential Mortgage
Loan Originator
A(n) ________ occurs when a new contract is substituted for an existing one. -
ANSWER-novation
A(n) ________ is a business venture that is owned by one individual. -
ANSWER-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. - ANSWER-net listing
The requirements for a valid lease are, competent parties, let and take
agreement, in writing and ________. - ANSWER-description of the property
