Law of Contracts Final Exam Questions And Answers

Law of Contracts Final 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- agency law __________ 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