Law of Contracts - Champions Test: Questions & Answers
Wrongful or criminal deception intended to result in financial or personal gain is called: - ANSWER:fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a lease period not to exceed: -
ANSWER:90 days
__________ extend above the surface without limitation. - ANSWER:air rights
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 one that combines some of the elements of a sale with a lease. - ANSWER:lease
purchase agreement
Which of the following requires a contract for the conveyance of real estate to be in writing to be
enforceable? - ANSWER:statute of frauds
If a broker receives more than one offer on a property: - ANSWER:All must be presented to the seller
unless the seller has instructed the broker otherwise
The most common form of financing used by buyers is: - ANSWER:third party financing
A(n) __________ is a provision in a contract that requires that a certain act or event happens in order for
the contract to be binding on the party. - ANSWER:contingency
The Lead-Based Paint Disclosure is: - ANSWER:A federal requirement for residential property built prior
to 1978
In Texas, real estate contracts are subject to satisfactory inspections. - ANSWER:false
The term __________ is synonymous with contingent. - ANSWER:subject to
Real estate agents play a role that includes arranging for the pre-qualification / pre-approval of buyers. -
ANSWER:true
Rule P-53 of the Texas Department of Insurance states that Title Companies: - ANSWER: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
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___________________________. - ANSWER: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
Wrongful or criminal deception intended to result in financial or personal gain is called: - ANSWER:fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a lease period not to exceed: -
ANSWER:90 days
__________ extend above the surface without limitation. - ANSWER:air rights
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 one that combines some of the elements of a sale with a lease. - ANSWER:lease
purchase agreement
Which of the following requires a contract for the conveyance of real estate to be in writing to be
enforceable? - ANSWER:statute of frauds
If a broker receives more than one offer on a property: - ANSWER:All must be presented to the seller
unless the seller has instructed the broker otherwise
The most common form of financing used by buyers is: - ANSWER:third party financing
A(n) __________ is a provision in a contract that requires that a certain act or event happens in order for
the contract to be binding on the party. - ANSWER:contingency
The Lead-Based Paint Disclosure is: - ANSWER:A federal requirement for residential property built prior
to 1978
In Texas, real estate contracts are subject to satisfactory inspections. - ANSWER:false
The term __________ is synonymous with contingent. - ANSWER:subject to
Real estate agents play a role that includes arranging for the pre-qualification / pre-approval of buyers. -
ANSWER:true
Rule P-53 of the Texas Department of Insurance states that Title Companies: - ANSWER: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
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___________________________. - ANSWER: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
