TREBS Exam 4 questions with verified answers
A promise for a promise is considered a _________________contract.
A. Unilateral
B. Bilateral
C. Valid
D. Void
Rationale: The correct answer is B. A bilateral contract, or a promise for
a promise, is where both parties are agreeing to both take an agreed
action.
A property whose ownership rights is vested with several owners is
called a:
A. Co-operative
B. Townhome
C. Timeshare
D. Condominium
Rationale: The correct answer is C. The use of the singular "property" is
a clue to the correct answer as timeshares are a single unit, often in a
vacation property, where the owners have certain periods that their
ownership allows residency, so many owners will own the property to
use during their separate, specified period.
A seller conveys personal property with a:
A. Deed
,B. Bill of sale
C. Deed of trust
D. Nothing is required.
Rationale: The correct answer is B. The non-realty item addendum may
be used in a real estate transaction if the items are not too costly
perhaps jeopardizing the appraisal value, so any personal property that
conveys may be transferred with a bill of sale which acts as a receipt for
the transfer of personal possessions.
After the contract has been finalized, inspections and repairs, change of
assigning fees, closing dates, and disclosures are addressed on what
form?
A. Amendments
B. Addenda
C. Contract
D. No forms are required.
Rationale: The correct answer is A. Any change to modify a contract
including addressing repair requests, changes to any of the dollar
amounts or dates will be addressed on an amendment to the contract,
thereby amending what has already been agreed to.
All are considered to be practicing law without a license EXCEPT:
A. Disclose to the principal all pertinent facts
B. Giving legal advice
C. Giving an opinion as to the validity of title
, D. Giving advice as to the legal effect of any contract
Rationale: The correct answer is A. It is the agent's fiduciary duty to
disclose all pertinent facts to the principal, while the other acts are all
practicing law acts.
All of the following are reasons that contracts may terminate EXCEPT:
A. Fraud
B. Misrepresentation
C. When there is a suit for specific performance
D. Previous agreement
Rationale: The correct answer is C. A contract may not terminate if the
non-defaulting party is suing for performance of the contact, thereby
continuing the contract until the suit concludes.
An agency relationship which is created after the fact when the
principle agrees to be bound by the actions of another person who is
acting without authority is called:
A. Agency by ratification
B. Implied agency
C. Expressed oral agency
D. Expressed written agency
Rationale: The correct answer is A. Agency by ratification often
transpires while the owner is contracting with an agent for a different
real estate service. Instead a different type of transaction occurs which
the agent was not originally contracted for, like an agent listing a
A promise for a promise is considered a _________________contract.
A. Unilateral
B. Bilateral
C. Valid
D. Void
Rationale: The correct answer is B. A bilateral contract, or a promise for
a promise, is where both parties are agreeing to both take an agreed
action.
A property whose ownership rights is vested with several owners is
called a:
A. Co-operative
B. Townhome
C. Timeshare
D. Condominium
Rationale: The correct answer is C. The use of the singular "property" is
a clue to the correct answer as timeshares are a single unit, often in a
vacation property, where the owners have certain periods that their
ownership allows residency, so many owners will own the property to
use during their separate, specified period.
A seller conveys personal property with a:
A. Deed
,B. Bill of sale
C. Deed of trust
D. Nothing is required.
Rationale: The correct answer is B. The non-realty item addendum may
be used in a real estate transaction if the items are not too costly
perhaps jeopardizing the appraisal value, so any personal property that
conveys may be transferred with a bill of sale which acts as a receipt for
the transfer of personal possessions.
After the contract has been finalized, inspections and repairs, change of
assigning fees, closing dates, and disclosures are addressed on what
form?
A. Amendments
B. Addenda
C. Contract
D. No forms are required.
Rationale: The correct answer is A. Any change to modify a contract
including addressing repair requests, changes to any of the dollar
amounts or dates will be addressed on an amendment to the contract,
thereby amending what has already been agreed to.
All are considered to be practicing law without a license EXCEPT:
A. Disclose to the principal all pertinent facts
B. Giving legal advice
C. Giving an opinion as to the validity of title
, D. Giving advice as to the legal effect of any contract
Rationale: The correct answer is A. It is the agent's fiduciary duty to
disclose all pertinent facts to the principal, while the other acts are all
practicing law acts.
All of the following are reasons that contracts may terminate EXCEPT:
A. Fraud
B. Misrepresentation
C. When there is a suit for specific performance
D. Previous agreement
Rationale: The correct answer is C. A contract may not terminate if the
non-defaulting party is suing for performance of the contact, thereby
continuing the contract until the suit concludes.
An agency relationship which is created after the fact when the
principle agrees to be bound by the actions of another person who is
acting without authority is called:
A. Agency by ratification
B. Implied agency
C. Expressed oral agency
D. Expressed written agency
Rationale: The correct answer is A. Agency by ratification often
transpires while the owner is contracting with an agent for a different
real estate service. Instead a different type of transaction occurs which
the agent was not originally contracted for, like an agent listing a
