Law of Contracts – CHAMPIONS TEST EXAM

Law of Contracts – CHAMPIONS TEST EXAM A(n) __________ description of property is a requirement for a valid deed. Legal __________ occurs when an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period. adverse possession RESPA regulates closings on: 1-4 family residential properties with federally related financing __________ of RESPA prohibits any person who, pursuant to any agreement or understanding, gives or receives a fee or a thing of value for the referral of settlement business. section 8 __________ implements the Real Estate Settlement Procedures Act. regulation x Ongoing expenses such as property taxes and property owner association fees that are divided between the buyer and the seller at closing are called __________. Prorations Rule P-53 of the Texas Department of Insurance states that Title Companies: Cannot provide food and beverages for a picnic for a single firm, Cannot provide an annual party for a single firm, Cannot provide continuing education classes unless they charge the market rate for those classes A yearly tax bill is $2400 and has not been paid. The property has sold and closing is July 30th. How much will be owed at closing for taxes? (Use a 365-day year, round to the nearest dollar and the seller pays for closing day.) $1,387 Bill is the buyer purchasing a property from Sally. All contingencies have been met and the parties are ready to close. One day prior to closing, Sally announces that she has changed her mind and is going to keep the property. Bill is determined to complete the purchase and acquire the property. The only default remedy in the contract that could result in Bill acquiring the property is___________________. specific performance Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a contract. The seller told Elmer that he wanted to stay in the property for at least a week after closing. Elmer said that would be no problem and entered the following text to Paragraph 11: "Seller and Buyer agree that Seller will remain in the Property for 7 days after closing and funding." In this case, Elmer has: Engaged in the unlawful practice of law The four economic characteristics of land are: scarcity, fixity, situs and ________. Modification Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a property that is listed for $199,500. In a recent phone conversation, the seller told Joe he would accept no less than $185,000 for the property. Knowing the seller's "bottom line," what should Joe do with the offer? Joe should present the offer to the seller An abstract of title is: a complete written history of title An option is: a unilateral contract A seller is going to continue to occupy a property for two days after closing. In this case, the parties should use the Buyer's Temporary Residential Lease form. False A contract in which only one party is obligated to perform is a________ contract. Unilateral For tax prorations: If taxes are not paid at or prior to closing the buyer shall pay for the current year, If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available, The tax proration may be calculated taking into consideration any change in the exemptions that will affect the current year's taxes ________ is the right of the government to regulate and control the way land is used. police power A seller of coastal property abutting tidally influenced water must provide the ________. Notice Regarding Coastal Area Property RESPA prohibits ________, which is considered an abusive practice. Kickbacks A claim, lien, charge, or liability attached to and binding real property is a(n) ________. Encumbrance A(n) ________ is a pro