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AYPO Real Estate Law Of Contracts (version 1&2) Newest
2026/2027 Actual Exam Complete 250 Questions And Correct
Answers(Verified Answers)|Already Graded A+|| New
Version||Sure Pass!!!
An advantage to buyers in a lease-purchase option is that: -
ANSWER-It can be easier to get a difficult to qualify buyer into a
home with a lower down payment.
The real estate sales contract becomes an offer as soon as: -
ANSWER-It has been prepared and signed by the purchaser.
At what point has an acceptance of an offer been completed? -
ANSWER-Once the offeror has been notified of the offeree's
acceptance.
A __________ clause states that a contract remains valid even if
one provision of the contract is rendered invalid. - ANSWER-
Severability
Which of these IS NOT one of the major types of REITs? -
ANSWER-Commercial
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Buyer's agents aware of a "stigma." i.e., psychologically
impactful event, on a property are required to disclose the
stigma. - ANSWER-FALSE
Buyer A purchases home from Seller B, but the home burns
down the week before closing - the cause a cigarette dropped
by A during a walk-through. As a result: - ANSWER-A likely is
obligated to complete the purchase because the damage was
A's fault.
Which of these IS NOT listed as a potential damages item for
wrongfully failing or refusing to sign a release acceptable to the
escrow agent within 7 days of receipt of the request? -
ANSWER-Broker's fees
In what instances may parol (oral) evidence be used to dispute
a contractual obligation? - ANSWER-When a party made
promises that they never intended to fulfill but used to induced
the other party to sign the contract
Which of these is not a common defense to breach of contract?
- ANSWER-Novation
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Damages that are accounted for in advance by agreeing to a
specific amount of compensation should the anticipated event
occur, are referred to as: - ANSWER-Liquidated damages
A "cloud" on a title means: - ANSWER-There is a possibility of
another person or entity having a claim on the property.
An amendment must always reference: - ANSWER-1. The
original contract.
2. Names of the parties.
3. Dates of ratification.
Promulgated addenda forms may be found in Paragraph 22 of
which addendum form? - ANSWER-One to Four Family
Residential Contract (Resale)
The major distinction between "lien theory" and "title theory"
states is: - ANSWER-in lien theory states, the borrower holds
title, and in title theory states, the lender holds the title.
Hypothecation is: - ANSWER-The process of a buyer signing a
promissory note to repay a debt and the lender taking an
underlying equitable right in the property.
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A promissory note is: - ANSWER-A promise to pay a debt.
The Deed of Trust is easier to foreclose on because: - ANSWER-
The Deed of Trust is held by a third party.
Owner/seller financing is most common with: - ANSWER-Raw
acreage and farmland sales.
The federal CFPB has required that the mortgage servicer wait
until the owner is more than 120 days delinquent on payments
before the first official notice of filing for a foreclosure, unless: -
ANSWER-The lender's sole purpose of notice is to inform the
borrower that their payments are delinquent and/or to explain
what loss mitigation options are available.
A major difference between a lien for federal or state income
taxes versus a lien for property taxes is: - ANSWER-Federal and
state income tax liens can be placed against any individual
property, while property taxes generally attach to the property
on which the tax is owed.
AYPO Real Estate Law Of Contracts (version 1&2) Newest
2026/2027 Actual Exam Complete 250 Questions And Correct
Answers(Verified Answers)|Already Graded A+|| New
Version||Sure Pass!!!
An advantage to buyers in a lease-purchase option is that: -
ANSWER-It can be easier to get a difficult to qualify buyer into a
home with a lower down payment.
The real estate sales contract becomes an offer as soon as: -
ANSWER-It has been prepared and signed by the purchaser.
At what point has an acceptance of an offer been completed? -
ANSWER-Once the offeror has been notified of the offeree's
acceptance.
A __________ clause states that a contract remains valid even if
one provision of the contract is rendered invalid. - ANSWER-
Severability
Which of these IS NOT one of the major types of REITs? -
ANSWER-Commercial
,2|Page
Buyer's agents aware of a "stigma." i.e., psychologically
impactful event, on a property are required to disclose the
stigma. - ANSWER-FALSE
Buyer A purchases home from Seller B, but the home burns
down the week before closing - the cause a cigarette dropped
by A during a walk-through. As a result: - ANSWER-A likely is
obligated to complete the purchase because the damage was
A's fault.
Which of these IS NOT listed as a potential damages item for
wrongfully failing or refusing to sign a release acceptable to the
escrow agent within 7 days of receipt of the request? -
ANSWER-Broker's fees
In what instances may parol (oral) evidence be used to dispute
a contractual obligation? - ANSWER-When a party made
promises that they never intended to fulfill but used to induced
the other party to sign the contract
Which of these is not a common defense to breach of contract?
- ANSWER-Novation
,3|Page
Damages that are accounted for in advance by agreeing to a
specific amount of compensation should the anticipated event
occur, are referred to as: - ANSWER-Liquidated damages
A "cloud" on a title means: - ANSWER-There is a possibility of
another person or entity having a claim on the property.
An amendment must always reference: - ANSWER-1. The
original contract.
2. Names of the parties.
3. Dates of ratification.
Promulgated addenda forms may be found in Paragraph 22 of
which addendum form? - ANSWER-One to Four Family
Residential Contract (Resale)
The major distinction between "lien theory" and "title theory"
states is: - ANSWER-in lien theory states, the borrower holds
title, and in title theory states, the lender holds the title.
Hypothecation is: - ANSWER-The process of a buyer signing a
promissory note to repay a debt and the lender taking an
underlying equitable right in the property.
, 4|Page
A promissory note is: - ANSWER-A promise to pay a debt.
The Deed of Trust is easier to foreclose on because: - ANSWER-
The Deed of Trust is held by a third party.
Owner/seller financing is most common with: - ANSWER-Raw
acreage and farmland sales.
The federal CFPB has required that the mortgage servicer wait
until the owner is more than 120 days delinquent on payments
before the first official notice of filing for a foreclosure, unless: -
ANSWER-The lender's sole purpose of notice is to inform the
borrower that their payments are delinquent and/or to explain
what loss mitigation options are available.
A major difference between a lien for federal or state income
taxes versus a lien for property taxes is: - ANSWER-Federal and
state income tax liens can be placed against any individual
property, while property taxes generally attach to the property
on which the tax is owed.
