LAW OF CONTRACTS PRACTICE
CERTIFICATION EVALUATION TEST 2026 FULL
QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED GRADED A+
◉ A seller stays in a property a few days after closing. They become
the tenant and the buyer becomes the landlord. To put this in
writing, utilize the: Answer: Seller's Temporary Residential Lease
◉ It is possible for two people to accidentally create a contract by
their actions. What kind of contract is this?* Answer: implied
contract
◉ A license holder may have his or her license suspended or
revoked for all of the following EXCEPT: Answer: The license holder
fails to perform an unlawful act requested by a client
◉ Which of the following would not normally appear on the closing
disclosure?* Answer: Moving costs
◉ A TREC amendment form serves to: Answer: modify a fully
accepted and agreed upon contract
,◉ Which of the following statements regarding mineral rights and
surface rights is TRUE? Answer: Between mineral estates and
surface estates, mineral estate rights are dominant.
◉ Which of the following is NOT one of the five essential elements of
a legally valid contract? Answer: orally agreed upon
◉ What are riparian rights? Answer: rights that govern the use of
flowing water, such as rivers, streams, and creeks that pass through
or border a property
◉ An example of voluntary alienation is: Answer: property passing
to a party according to a will
◉ Yamina is taking out a VA loan. She will NOT be permitted to pay:*
Answer: escrow fees
◉ Jeremy would like to move out of his parents house and rent an
apartment. He is 17 years old and has sufficient savings to finance an
apartment. Which of the following is TRUE? Answer: Jeremy would
NOT be considered a competent party to a lease because he is not at
least 18 years old.
,◉ Jeffery is a seller who knows he needs to disclose a few
concerning facts about his property. He should utilize a: Answer:
Seller's Disclosure Notice
◉ Joe is a real estate agent assisting a client with a promulgated
form. The client does not agree with a few phrases in the form, so Joe
strikes those phrases out. Which of the following is TRUE?* Answer:
Joes should NOT have done that as agents may only fill in the
appropriate blanks in a form or add their business details.
◉ If the buyer wants to make the contract contingent upon their
ability to have environmental inspections of the property, the correct
way to do that is: Answer: Attach the Environmental Assessment,
Threatened or Endangered Species, and Wetlands Addendum to the
offer.
◉ Which of the following is TRUE about business entities that can
hold real estate investments? Answer: Sole proprietorships,
partnerships, corporations, and S corps are ALL entities that CAN
hold real estate investments.
◉ What type of funds MUST be deposited by the second working day
after the effective date of the contract?* Answer: earnest money
, ◉ If a license holder put the client's earnest money into his/her own
personal checking account he or she is guilty of: Answer:
Commingling
◉ WHAT enables the lender to seize the property if the borrower
defaults on making payments?* Answer: security interest
◉ Fannie Mae and Freddie Mac participate in which of the
following? Answer: Secondary mortgage market
◉ A conventional loan: Answer: is not guaranteed or insured by any
government agency
◉ Assignment is described by which of the following:* Answer: A
party to a contract wants to withdraw without terminating the
contract. They transfer their rights and duties to a third party.
◉ What is an estate for years?* Answer: a leased possession of a
property for a certain, specific period of time
◉ Which of the following regarding personal and real property is
TRUE? Answer: Real property is land plus improvements on the
land, so a house is an example of real property.
CERTIFICATION EVALUATION TEST 2026 FULL
QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED GRADED A+
◉ A seller stays in a property a few days after closing. They become
the tenant and the buyer becomes the landlord. To put this in
writing, utilize the: Answer: Seller's Temporary Residential Lease
◉ It is possible for two people to accidentally create a contract by
their actions. What kind of contract is this?* Answer: implied
contract
◉ A license holder may have his or her license suspended or
revoked for all of the following EXCEPT: Answer: The license holder
fails to perform an unlawful act requested by a client
◉ Which of the following would not normally appear on the closing
disclosure?* Answer: Moving costs
◉ A TREC amendment form serves to: Answer: modify a fully
accepted and agreed upon contract
,◉ Which of the following statements regarding mineral rights and
surface rights is TRUE? Answer: Between mineral estates and
surface estates, mineral estate rights are dominant.
◉ Which of the following is NOT one of the five essential elements of
a legally valid contract? Answer: orally agreed upon
◉ What are riparian rights? Answer: rights that govern the use of
flowing water, such as rivers, streams, and creeks that pass through
or border a property
◉ An example of voluntary alienation is: Answer: property passing
to a party according to a will
◉ Yamina is taking out a VA loan. She will NOT be permitted to pay:*
Answer: escrow fees
◉ Jeremy would like to move out of his parents house and rent an
apartment. He is 17 years old and has sufficient savings to finance an
apartment. Which of the following is TRUE? Answer: Jeremy would
NOT be considered a competent party to a lease because he is not at
least 18 years old.
,◉ Jeffery is a seller who knows he needs to disclose a few
concerning facts about his property. He should utilize a: Answer:
Seller's Disclosure Notice
◉ Joe is a real estate agent assisting a client with a promulgated
form. The client does not agree with a few phrases in the form, so Joe
strikes those phrases out. Which of the following is TRUE?* Answer:
Joes should NOT have done that as agents may only fill in the
appropriate blanks in a form or add their business details.
◉ If the buyer wants to make the contract contingent upon their
ability to have environmental inspections of the property, the correct
way to do that is: Answer: Attach the Environmental Assessment,
Threatened or Endangered Species, and Wetlands Addendum to the
offer.
◉ Which of the following is TRUE about business entities that can
hold real estate investments? Answer: Sole proprietorships,
partnerships, corporations, and S corps are ALL entities that CAN
hold real estate investments.
◉ What type of funds MUST be deposited by the second working day
after the effective date of the contract?* Answer: earnest money
, ◉ If a license holder put the client's earnest money into his/her own
personal checking account he or she is guilty of: Answer:
Commingling
◉ WHAT enables the lender to seize the property if the borrower
defaults on making payments?* Answer: security interest
◉ Fannie Mae and Freddie Mac participate in which of the
following? Answer: Secondary mortgage market
◉ A conventional loan: Answer: is not guaranteed or insured by any
government agency
◉ Assignment is described by which of the following:* Answer: A
party to a contract wants to withdraw without terminating the
contract. They transfer their rights and duties to a third party.
◉ What is an estate for years?* Answer: a leased possession of a
property for a certain, specific period of time
◉ Which of the following regarding personal and real property is
TRUE? Answer: Real property is land plus improvements on the
land, so a house is an example of real property.
