The CE Shop Law of Contracts Exam
Questions and Answers 100% Solved
Which part of a loan is the agreement to repay the debt? - ✔✔Promissory
note
Charles runs a small vacuum cleaner repair business. His commercial
property ____________ lease agreement has him paying a base rent plus
an allocated amount of gross sales above a certain threshold. -
✔✔Percentage
How many members does TREC appoint to the Broker-Lawyer Committee?
- ✔✔Six
What is a discount point? - ✔✔An upfront charge to make up for the
difference between the rate the borrower is receiving and the rate the
lender normally requires
Without this easement—usually involving access to a road—the owner
requiring the right of passage would be landlocked. - ✔✔Easement by
necessity
Which government power can place a lien on a property? - ✔✔Taxation
1
©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
,During the earnest money demand process, how many days after receiving
a request to send a release of earnest money notice to the escrow agent
do the parties to the transaction have to respond? - ✔✔Seven days
In Texas, how long must completed real estate forms be kept on file with
the broker? - ✔✔Four years
The _____ is used to transfer the title. - ✔✔Deed
Which of the following describes the amount a lender charges a borrower
for using money? - ✔✔Interest
What can be used as solid proof of ownership in Texas? - ✔✔A deed and
either certificate of title or title insurance
Who or what entity must keep records of all funds deposited into the
custodial or trust account that indicate the date and from whom the broker
received the funds, the date deposited, the date any withdrawals are made,
and other necessary information? - ✔✔The broker
The term "right of survivorship" is closely linked with
_____________________. - ✔✔Joint Tenancy
A contract that is in theory legal, but is not defensible in court, would be
considered _________. - ✔✔Unenforceable
2
©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
,Robin has obtained a loan to purchase a home. Which of the following
serves as security for that loan? - ✔✔Deed of trust
Which of the following statements about the TAR Residential Lease
agreement's automatic renewal policy is true? - ✔✔After the lease term has
expired, the lease will be automatically renewed on a month-to-month
basis.
In contract law, partial performance occurs when a party ______. -
✔✔Does some, but not all, of what the party has agreed to do
What's the minimum number of business days prior to closing that lenders
have to provide borrowers with the Closing Disclosure form? - ✔✔Three
Which document provides the buyer with data about the property's title
record, legal description, and other matters that may need to be acted upon
in order to obtain a marketable title? - ✔✔Title report
Ken, Barbie, and Skipper owned a property as a joint tenancy. When
Skipper moved out of state, she sold her interest to Midge. Two years later,
Ken died. How is the interest in the property divided? - ✔✔Barbie owns
two-thirds, and Midge owns one-third.
3
©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
, Marigold is leasing her commercial space with an option to buy the property
when the lease expires. What type of commercial lease does Marigold
have? - ✔✔Lease purchase
Why might a homebuyer use an FHA 203(k) loan instead of the standard
203(b) loan? - ✔✔To roll the cost of rehabilitating the purchased home into
the mortgage
Which of the following statements is true about septic systems? - ✔✔They
differ in the way they are installed.
______ is the gradual receding of water, which uncovers new land. -
✔✔Reliction
Hugo was the highest bidder on a foreclosed property. What type of deed
gives him ownership rights? - ✔✔Referee's deed
Which of the following defines when a lender charges a borrower more
than the highest allowable interest rate? - ✔✔Usury
Charlene shares one wall with her neighbors to the side, but her home has
three levels and she has no upstairs or downstairs neighbors nor a
neighbor on the other side. What type of dwelling does Charlene own? -
✔✔Townhome
Another name for the borrower of a loan is ______. - ✔✔Mortgagor
4
©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
Questions and Answers 100% Solved
Which part of a loan is the agreement to repay the debt? - ✔✔Promissory
note
Charles runs a small vacuum cleaner repair business. His commercial
property ____________ lease agreement has him paying a base rent plus
an allocated amount of gross sales above a certain threshold. -
✔✔Percentage
How many members does TREC appoint to the Broker-Lawyer Committee?
- ✔✔Six
What is a discount point? - ✔✔An upfront charge to make up for the
difference between the rate the borrower is receiving and the rate the
lender normally requires
Without this easement—usually involving access to a road—the owner
requiring the right of passage would be landlocked. - ✔✔Easement by
necessity
Which government power can place a lien on a property? - ✔✔Taxation
1
©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
,During the earnest money demand process, how many days after receiving
a request to send a release of earnest money notice to the escrow agent
do the parties to the transaction have to respond? - ✔✔Seven days
In Texas, how long must completed real estate forms be kept on file with
the broker? - ✔✔Four years
The _____ is used to transfer the title. - ✔✔Deed
Which of the following describes the amount a lender charges a borrower
for using money? - ✔✔Interest
What can be used as solid proof of ownership in Texas? - ✔✔A deed and
either certificate of title or title insurance
Who or what entity must keep records of all funds deposited into the
custodial or trust account that indicate the date and from whom the broker
received the funds, the date deposited, the date any withdrawals are made,
and other necessary information? - ✔✔The broker
The term "right of survivorship" is closely linked with
_____________________. - ✔✔Joint Tenancy
A contract that is in theory legal, but is not defensible in court, would be
considered _________. - ✔✔Unenforceable
2
©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
,Robin has obtained a loan to purchase a home. Which of the following
serves as security for that loan? - ✔✔Deed of trust
Which of the following statements about the TAR Residential Lease
agreement's automatic renewal policy is true? - ✔✔After the lease term has
expired, the lease will be automatically renewed on a month-to-month
basis.
In contract law, partial performance occurs when a party ______. -
✔✔Does some, but not all, of what the party has agreed to do
What's the minimum number of business days prior to closing that lenders
have to provide borrowers with the Closing Disclosure form? - ✔✔Three
Which document provides the buyer with data about the property's title
record, legal description, and other matters that may need to be acted upon
in order to obtain a marketable title? - ✔✔Title report
Ken, Barbie, and Skipper owned a property as a joint tenancy. When
Skipper moved out of state, she sold her interest to Midge. Two years later,
Ken died. How is the interest in the property divided? - ✔✔Barbie owns
two-thirds, and Midge owns one-third.
3
©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
, Marigold is leasing her commercial space with an option to buy the property
when the lease expires. What type of commercial lease does Marigold
have? - ✔✔Lease purchase
Why might a homebuyer use an FHA 203(k) loan instead of the standard
203(b) loan? - ✔✔To roll the cost of rehabilitating the purchased home into
the mortgage
Which of the following statements is true about septic systems? - ✔✔They
differ in the way they are installed.
______ is the gradual receding of water, which uncovers new land. -
✔✔Reliction
Hugo was the highest bidder on a foreclosed property. What type of deed
gives him ownership rights? - ✔✔Referee's deed
Which of the following defines when a lender charges a borrower more
than the highest allowable interest rate? - ✔✔Usury
Charlene shares one wall with her neighbors to the side, but her home has
three levels and she has no upstairs or downstairs neighbors nor a
neighbor on the other side. What type of dwelling does Charlene own? -
✔✔Townhome
Another name for the borrower of a loan is ______. - ✔✔Mortgagor
4
©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
