LAW OF CONTRACT NEWEST 2025 WITH ACTUAL QUESTION
AND CORRECT ANSWERS(DETAILED ANSWERS)100%
GUARANTEED PASS!
A sale and leaseback agreement is: - CORRECT ANSWER-a way for
landowners to free up capital while maintaining the same overhead expenses
With net leases, each added "net" requires a tenant to pay for an additional
expense that may have otherwise fallen on the landlord. All of the following are
expenses that could be paid under a net lease EXCEPT: - CORRECT ANSWER-
debt interest
(Any lease that requires a tenant to pay rent, property taxes, insurance, and
maintenance expenses is a triple-net lease.)
What allows the courts to identify a property with reasonable certainty? -
CORRECT ANSWER-The legal property description from the deed
A promissory note is: - CORRECT ANSWER-the borrower's personal promise
to repay the loan to the lender
Who is responsible for writing commission checks to the brokers? - CORRECT
ANSWER-Title Company
During a contract for deed: - CORRECT ANSWER-The seller hold the legal title
to the property and the buyer is entitled to possession and equitable title to
the property
,An orange tree (which is not moveable and is something growing on the land in
question) would be considered: - CORRECT ANSWER-real property
Real Property is the land plus improvements on the land (including what's
growing on the land).
Real estate loans are bought and sold on the: - CORRECT ANSWER-secondary
mortgage market
What is an executed contract? - CORRECT ANSWER-a contract in which all
terms have been fulfilled by all parties
Aviv and Gregory are friends who are also parties to a real estate sale. They
agree over a sale price verbally because they trust each other. As per the
Statute of Frauds, which of the following is TRUE regarding the enforceability of
their contract? - CORRECT ANSWER-For their contract to be enforceable, it
must be in writing AND signed by the party being charged.
Contracts must be in writing and signed by the party to be charged to be
enforceable.
Jasper and Aziz are engaging a real estate transaction. They want to make sure
the interest being conveyed is officially and accurately recorded. What would
they use to do that? - CORRECT ANSWER-one of the sales contracts
promulgated by TREC
The six TREC-promulgated sales contracts describe the conveyance that the
buyer and seller are agreeing upon.
According to the TREC contracts, the title company (on behalf of the seller) will
send what to the buyer within 20 days after they receive the signed contract? -
CORRECT ANSWER-Commitment for title insurance
,Which of the following about the unauthorized practice of law and real estate
contracts is TRUE? - CORRECT ANSWER-license holders are able to complete
(fill in the blanks of) real estate contracts promulgated by TREC but should NOT
create their own contracts
If the buyer wants to make the contract contingent upon their ability to have
environmental inspections of the property, the correct way to do that is: -
CORRECT ANSWER-Attach the Environmental Assessment, Threatened or
Endangered Species, and Wetlands Addendum to the offer.
What is eminent domain? - CORRECT ANSWER-the power of the state to
seize a citizen's private property or rights in a property WITH compensation but
without the consent of the owner (prop taken for gov. use
A seller's homeowner's insurance policy is cancelled at the time of closing.
They will receive WHAT after closing for the part of their premium that was
paid in advance? - CORRECT ANSWER-A refund check
WHAT loan programs are great for first-time homebuyers because they offer
loan programs that focus on low down payments? - CORRECT ANSWER-FHA
& VA loans
A buyer's offer is returned with two changes made. The proposed contract is
now a(n): - CORRECT ANSWER-counteroffer
A buyer decides to terminate the contract during his option period. He will
submit the Termination of Contract notice to the seller and will be entitled to: -
CORRECT ANSWER-A refund of the earnest money
, Real estate loans are bought and sold on the: - CORRECT ANSWER-secondary
mortgage market
Which legal concept places a limit on the amount of time that an individual has
to take legal action against another individual in order to recover any losses or
damages? - CORRECT ANSWER-Statute of Limitations
A license holder can have their license suspended or revoked if: - CORRECT
ANSWER-They fail to use a contract form required by TREC
An unenforceable contract is one that has (or had) the potential of being a valid
contract, but its enforcement is (or was) barred by some attribute of the
contract or a technicality of law. Which of the following is NOT a law that could
make a contract unenforceable? - CORRECT ANSWER-doctrine of ratification
(on the contrary: Some common causes for a valid contract being
unenforceable are if a contract violates the statute of frauds, statute of
limitations, or doctrine of laches)
The requirement for certain contracts be in writing and signed by all of the
parties to the contract is included in the: - CORRECT ANSWER-Statute of
frauds
Jackie is a license holder who creates her own real estate contracts because
she wishes to save herself (and her brokerage) time and money. Jackie has
good intentions; what is true of her (and other license holders like her who
create their own contracts)? - CORRECT ANSWER-Creating and drawing up
contracts that transfer real property ownership is prohibited as it is an
unauthorized practice of law.
What makes a contract legally binding, is defined as "something of value
exchanged by the parties as evidence of agreement to the terms of a contract,"
AND CORRECT ANSWERS(DETAILED ANSWERS)100%
GUARANTEED PASS!
A sale and leaseback agreement is: - CORRECT ANSWER-a way for
landowners to free up capital while maintaining the same overhead expenses
With net leases, each added "net" requires a tenant to pay for an additional
expense that may have otherwise fallen on the landlord. All of the following are
expenses that could be paid under a net lease EXCEPT: - CORRECT ANSWER-
debt interest
(Any lease that requires a tenant to pay rent, property taxes, insurance, and
maintenance expenses is a triple-net lease.)
What allows the courts to identify a property with reasonable certainty? -
CORRECT ANSWER-The legal property description from the deed
A promissory note is: - CORRECT ANSWER-the borrower's personal promise
to repay the loan to the lender
Who is responsible for writing commission checks to the brokers? - CORRECT
ANSWER-Title Company
During a contract for deed: - CORRECT ANSWER-The seller hold the legal title
to the property and the buyer is entitled to possession and equitable title to
the property
,An orange tree (which is not moveable and is something growing on the land in
question) would be considered: - CORRECT ANSWER-real property
Real Property is the land plus improvements on the land (including what's
growing on the land).
Real estate loans are bought and sold on the: - CORRECT ANSWER-secondary
mortgage market
What is an executed contract? - CORRECT ANSWER-a contract in which all
terms have been fulfilled by all parties
Aviv and Gregory are friends who are also parties to a real estate sale. They
agree over a sale price verbally because they trust each other. As per the
Statute of Frauds, which of the following is TRUE regarding the enforceability of
their contract? - CORRECT ANSWER-For their contract to be enforceable, it
must be in writing AND signed by the party being charged.
Contracts must be in writing and signed by the party to be charged to be
enforceable.
Jasper and Aziz are engaging a real estate transaction. They want to make sure
the interest being conveyed is officially and accurately recorded. What would
they use to do that? - CORRECT ANSWER-one of the sales contracts
promulgated by TREC
The six TREC-promulgated sales contracts describe the conveyance that the
buyer and seller are agreeing upon.
According to the TREC contracts, the title company (on behalf of the seller) will
send what to the buyer within 20 days after they receive the signed contract? -
CORRECT ANSWER-Commitment for title insurance
,Which of the following about the unauthorized practice of law and real estate
contracts is TRUE? - CORRECT ANSWER-license holders are able to complete
(fill in the blanks of) real estate contracts promulgated by TREC but should NOT
create their own contracts
If the buyer wants to make the contract contingent upon their ability to have
environmental inspections of the property, the correct way to do that is: -
CORRECT ANSWER-Attach the Environmental Assessment, Threatened or
Endangered Species, and Wetlands Addendum to the offer.
What is eminent domain? - CORRECT ANSWER-the power of the state to
seize a citizen's private property or rights in a property WITH compensation but
without the consent of the owner (prop taken for gov. use
A seller's homeowner's insurance policy is cancelled at the time of closing.
They will receive WHAT after closing for the part of their premium that was
paid in advance? - CORRECT ANSWER-A refund check
WHAT loan programs are great for first-time homebuyers because they offer
loan programs that focus on low down payments? - CORRECT ANSWER-FHA
& VA loans
A buyer's offer is returned with two changes made. The proposed contract is
now a(n): - CORRECT ANSWER-counteroffer
A buyer decides to terminate the contract during his option period. He will
submit the Termination of Contract notice to the seller and will be entitled to: -
CORRECT ANSWER-A refund of the earnest money
, Real estate loans are bought and sold on the: - CORRECT ANSWER-secondary
mortgage market
Which legal concept places a limit on the amount of time that an individual has
to take legal action against another individual in order to recover any losses or
damages? - CORRECT ANSWER-Statute of Limitations
A license holder can have their license suspended or revoked if: - CORRECT
ANSWER-They fail to use a contract form required by TREC
An unenforceable contract is one that has (or had) the potential of being a valid
contract, but its enforcement is (or was) barred by some attribute of the
contract or a technicality of law. Which of the following is NOT a law that could
make a contract unenforceable? - CORRECT ANSWER-doctrine of ratification
(on the contrary: Some common causes for a valid contract being
unenforceable are if a contract violates the statute of frauds, statute of
limitations, or doctrine of laches)
The requirement for certain contracts be in writing and signed by all of the
parties to the contract is included in the: - CORRECT ANSWER-Statute of
frauds
Jackie is a license holder who creates her own real estate contracts because
she wishes to save herself (and her brokerage) time and money. Jackie has
good intentions; what is true of her (and other license holders like her who
create their own contracts)? - CORRECT ANSWER-Creating and drawing up
contracts that transfer real property ownership is prohibited as it is an
unauthorized practice of law.
What makes a contract legally binding, is defined as "something of value
exchanged by the parties as evidence of agreement to the terms of a contract,"
