TEXAS PROMULGATED CONTRACTS UPDATED
EXAMS TEST PAPER QUESTIONS AND ANSWERS
SURE A+
✔✔house flipping - ✔✔a mortgage fraud scheme that involves an inflated appraisal and
a straw buyer
✔✔legally competent - ✔✔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 amount of money being loaned compared to the value of
the property
✔✔mortgagee title policy - ✔✔a title insurance policy that protects the lender's interests
in the property should a problem with the title arise
✔✔novation - ✔✔a mutual agreement of the parties to replace an existing contract with
a new one
✔✔occupancy standards - ✔✔rules about the maximum number of people that are
allowed to live together in a single dwelling
EXAMS TEST PAPER QUESTIONS AND ANSWERS
SURE A+
✔✔house flipping - ✔✔a mortgage fraud scheme that involves an inflated appraisal and
a straw buyer
✔✔legally competent - ✔✔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 amount of money being loaned compared to the value of
the property
✔✔mortgagee title policy - ✔✔a title insurance policy that protects the lender's interests
in the property should a problem with the title arise
✔✔novation - ✔✔a mutual agreement of the parties to replace an existing contract with
a new one
✔✔occupancy standards - ✔✔rules about the maximum number of people that are
allowed to live together in a single dwelling
