FORMIDABLE FORMS: MASTER TEXAS
PROMULGATED CONTRACTS 2026 – A+
FLASHCARDS, EXPLANATIONS &
PRACTICE SCENARIOS
escrow - THE CORRECT ANSWER-a process in which funds and/or
financial documents are held by a disinterested third party on
behalf of the other two parties in the real estate transaction
until specific conditions are satisfied
executed contract - THE CORRECT ANSWER-a contract in which all
terms have been fulfilled by all parties
executory contract - THE CORRECT ANSWER-a contract that has not
yet been fully performed (both sides have not yet completed
their obligations)
Fair Housing Act of 1968 - THE CORRECT ANSWER-a federal law that
prohibits discrimination in housing based upon race, color,
religion, or national origin and was amended to include sex,
disability, and familial status
fair lending laws - THE CORRECT ANSWER-laws that prevent lenders
from discriminating against protected classes when extending
credit; protected classes include race, color, national origin,
religion, sex, familial status, disability, gender expression,
sexuality, age, marital status, or receipt of public income
, goodwill - THE CORRECT ANSWER-good consideration, such as love
and affection, that can be exchanged for valuable consideration
in a contract or agreement; the exchange of which is generally
seen as a gift on the part of the party giving up the valuable
consideration
house flipping - THE CORRECT ANSWER-a mortgage fraud scheme
that involves an inflated appraisal and a straw buyer
legally competent - THE CORRECT ANSWER-when a party can legally
sign a binding contract; they have the age of majority and have
not been declared mentally incompetent by a judge
loan-to-value ratio - THE CORRECT ANSWER-the amount of money
being loaned compared to the value of the property
mortgagee title policy - THE CORRECT ANSWER-a title insurance
policy that protects the lender's interests in the property should
a problem with the title arise
novation - THE CORRECT ANSWER-a mutual agreement of the parties
to replace an existing contract with a new one
occupancy standards - THE CORRECT ANSWER-rules about the
maximum number of people that are allowed to live together in
a single dwelling
PROMULGATED CONTRACTS 2026 – A+
FLASHCARDS, EXPLANATIONS &
PRACTICE SCENARIOS
escrow - THE CORRECT ANSWER-a process in which funds and/or
financial documents are held by a disinterested third party on
behalf of the other two parties in the real estate transaction
until specific conditions are satisfied
executed contract - THE CORRECT ANSWER-a contract in which all
terms have been fulfilled by all parties
executory contract - THE CORRECT ANSWER-a contract that has not
yet been fully performed (both sides have not yet completed
their obligations)
Fair Housing Act of 1968 - THE CORRECT ANSWER-a federal law that
prohibits discrimination in housing based upon race, color,
religion, or national origin and was amended to include sex,
disability, and familial status
fair lending laws - THE CORRECT ANSWER-laws that prevent lenders
from discriminating against protected classes when extending
credit; protected classes include race, color, national origin,
religion, sex, familial status, disability, gender expression,
sexuality, age, marital status, or receipt of public income
, goodwill - THE CORRECT ANSWER-good consideration, such as love
and affection, that can be exchanged for valuable consideration
in a contract or agreement; the exchange of which is generally
seen as a gift on the part of the party giving up the valuable
consideration
house flipping - THE CORRECT ANSWER-a mortgage fraud scheme
that involves an inflated appraisal and a straw buyer
legally competent - THE CORRECT ANSWER-when a party can legally
sign a binding contract; they have the age of majority and have
not been declared mentally incompetent by a judge
loan-to-value ratio - THE CORRECT ANSWER-the amount of money
being loaned compared to the value of the property
mortgagee title policy - THE CORRECT ANSWER-a title insurance
policy that protects the lender's interests in the property should
a problem with the title arise
novation - THE CORRECT ANSWER-a mutual agreement of the parties
to replace an existing contract with a new one
occupancy standards - THE CORRECT ANSWER-rules about the
maximum number of people that are allowed to live together in
a single dwelling
