Law of Contracts Champions Test (LCCT) Exam
Questions and Answers
The TREC residential contract forms are: - ANSWER>>Drafted by the Broker Lawyer
Committee
Wrongful or criminal deception intended to result in financial or personal gain is
called: - ANSWER>>fraud
Under the Deceptive Trade Practices Act, __________ are defined as tangible
chattels. - ANSWER>>goods
If a seller will continue to occupy the property for one month after the closing, the
buyer and seller should: - ANSWER>>Enter into a Seller's Temporary Residential
Lease
The Buyer and Seller Temporary Residential Lease forms may be used for a lease
period not to exceed: - ANSWER>>90 days
A seller's disclosure notice is not required - ANSWER>>at a foreclosure sale
The type of law that deals with the relationship between the parties to a
transaction, sales agents and brokers is: - ANSWER>>Law of Agency
__________ is the body of laws and regulations enacted by federal and state
legislative bodies. - ANSWER>>Statutory Law
__________ extend above the surface without limitation. - ANSWER>>Air Rights
Any man-made addition to land that is permanent, and is considered to become
part of the land is known as a(n) __________. - ANSWER>>Improvement
A(n) __________ is an entity created for the benefit of another. - ANSWER>>Trust
An option contract is: - ANSWER>>Unilateral contract
__________ is not a requirement of a valid contract. - ANSWER>>Earnest Money
If a person has been judged to be incompetent, a contract is __________ because
the person never had the capacity to enter into a contract in the first place. -
ANSWER>>void
,The five essential elements of a valid and enforceable contract are, Consideration,
Offer and Acceptance, Legal purpose, In writing and __________. -
ANSWER>>competent parties
A(n) __________ is an agreement between two or more parties to do something or
to refrain from doing something. - ANSWER>>contract
When an individual owns real property, he or she is said to have a (n) __________ in
that property. - ANSWER>>freehold estate
If property violates zoning, the owners must request a __________, which is
permission to violate the rules. - ANSWER>>variance
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 an area of land separating one land use from another. -
ANSWER>>buffer zone
The French term __________ means a life estate that is based on the life of another.
- ANSWER>>pur autre vie
In a residential lease with a "right of first refusal" provision: - ANSWER>>The tenant
has the right to match or better any offer the landlord receives to prevent the
property from being sold to someone else
A __________ is an employment agreement between the seller and the broker. -
ANSWER>>listing agreement
A(n) __________ is one that combines some of the elements of a sale with a lease. -
ANSWER>>lease purchase agreement
Prior to closing, severe damage to or destruction of a property under contract: -
ANSWER>>Can result in termination of the contract
The four major types of listing agreements are, exclusive agency, net listing,
exclusive right to sell and __________. - ANSWER>>open listing
In a __________ lease, the tenant's rent is based, in whole or in part, on the receipts
of his or her business. - ANSWER>>percentage lease
A(n) __________ is a type of seller financing wherein the owner retains title to the
property while the purchaser takes possession of the premises and pays on the
principal. - ANSWER>>contract for deed
, 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
a counteroffer is: - ANSWER>>a rejection, a new offer, able to be withdrawn prior to
acceptance
A seller choosing to receive a buyer's earnest money after the buyer defaults on a
contract is an example of: - ANSWER>>liquidated damages
The most common form of financing used by buyers is: - ANSWER>>third party
financing
The Special Provisions paragraph of the contract allows license holders to insert: -
ANSWER>>Factual business details, Statements not addressed in the contract,
Information for which there is no TREC-promulgated addendum, lease or mandatory
form
An offer by a prospective purchaser can be terminated prior to acceptance due to: -
ANSWER>>expiration of a specified time period, bankruptcy of either party, a
change in the law that renders the contract illegal
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
The closing date specified in a contract is usually a(n )"__________" date. -
ANSWER>>on or before
In Texas, real estate contracts are subject to satisfactory inspections. -
ANSWER>>false
A(n) __________ to a contract is an attachment that adds or further describes the
rights and duties of the parties. - ANSWER>>addendum
The term __________ is synonymous with contingent. - ANSWER>>subject to
Texas Veteran's Housing Assistance Program loans can be: - ANSWER>>FHA, VA, and
convential
Questions and Answers
The TREC residential contract forms are: - ANSWER>>Drafted by the Broker Lawyer
Committee
Wrongful or criminal deception intended to result in financial or personal gain is
called: - ANSWER>>fraud
Under the Deceptive Trade Practices Act, __________ are defined as tangible
chattels. - ANSWER>>goods
If a seller will continue to occupy the property for one month after the closing, the
buyer and seller should: - ANSWER>>Enter into a Seller's Temporary Residential
Lease
The Buyer and Seller Temporary Residential Lease forms may be used for a lease
period not to exceed: - ANSWER>>90 days
A seller's disclosure notice is not required - ANSWER>>at a foreclosure sale
The type of law that deals with the relationship between the parties to a
transaction, sales agents and brokers is: - ANSWER>>Law of Agency
__________ is the body of laws and regulations enacted by federal and state
legislative bodies. - ANSWER>>Statutory Law
__________ extend above the surface without limitation. - ANSWER>>Air Rights
Any man-made addition to land that is permanent, and is considered to become
part of the land is known as a(n) __________. - ANSWER>>Improvement
A(n) __________ is an entity created for the benefit of another. - ANSWER>>Trust
An option contract is: - ANSWER>>Unilateral contract
__________ is not a requirement of a valid contract. - ANSWER>>Earnest Money
If a person has been judged to be incompetent, a contract is __________ because
the person never had the capacity to enter into a contract in the first place. -
ANSWER>>void
,The five essential elements of a valid and enforceable contract are, Consideration,
Offer and Acceptance, Legal purpose, In writing and __________. -
ANSWER>>competent parties
A(n) __________ is an agreement between two or more parties to do something or
to refrain from doing something. - ANSWER>>contract
When an individual owns real property, he or she is said to have a (n) __________ in
that property. - ANSWER>>freehold estate
If property violates zoning, the owners must request a __________, which is
permission to violate the rules. - ANSWER>>variance
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 an area of land separating one land use from another. -
ANSWER>>buffer zone
The French term __________ means a life estate that is based on the life of another.
- ANSWER>>pur autre vie
In a residential lease with a "right of first refusal" provision: - ANSWER>>The tenant
has the right to match or better any offer the landlord receives to prevent the
property from being sold to someone else
A __________ is an employment agreement between the seller and the broker. -
ANSWER>>listing agreement
A(n) __________ is one that combines some of the elements of a sale with a lease. -
ANSWER>>lease purchase agreement
Prior to closing, severe damage to or destruction of a property under contract: -
ANSWER>>Can result in termination of the contract
The four major types of listing agreements are, exclusive agency, net listing,
exclusive right to sell and __________. - ANSWER>>open listing
In a __________ lease, the tenant's rent is based, in whole or in part, on the receipts
of his or her business. - ANSWER>>percentage lease
A(n) __________ is a type of seller financing wherein the owner retains title to the
property while the purchaser takes possession of the premises and pays on the
principal. - ANSWER>>contract for deed
, 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
a counteroffer is: - ANSWER>>a rejection, a new offer, able to be withdrawn prior to
acceptance
A seller choosing to receive a buyer's earnest money after the buyer defaults on a
contract is an example of: - ANSWER>>liquidated damages
The most common form of financing used by buyers is: - ANSWER>>third party
financing
The Special Provisions paragraph of the contract allows license holders to insert: -
ANSWER>>Factual business details, Statements not addressed in the contract,
Information for which there is no TREC-promulgated addendum, lease or mandatory
form
An offer by a prospective purchaser can be terminated prior to acceptance due to: -
ANSWER>>expiration of a specified time period, bankruptcy of either party, a
change in the law that renders the contract illegal
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
The closing date specified in a contract is usually a(n )"__________" date. -
ANSWER>>on or before
In Texas, real estate contracts are subject to satisfactory inspections. -
ANSWER>>false
A(n) __________ to a contract is an attachment that adds or further describes the
rights and duties of the parties. - ANSWER>>addendum
The term __________ is synonymous with contingent. - ANSWER>>subject to
Texas Veteran's Housing Assistance Program loans can be: - ANSWER>>FHA, VA, and
convential
