AYPO REAL ESTATE LAW OF CONTRACTS
(VERSION 1&2) 2025 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+|NEWEST|LATEST
UPDATE|GUARANTEED PASS
Buyer-broker agency is a relatively new concept in the Texas real estate profession?
TRUE
Lease agreements lasting more than ________ must be in writing to be unenforceable under
the Texas Statute of Frauds.
One year
The leasehold estate owner is said to hold a ____________ interest.
Reversionary
Which of these would NOT be a requirement to create a valid lease agreement?
Financing disclosure
Which form of these lease types is focused primarily on commercial lessees?
Percentage lease
A tenant abandoning a leased property without providing proper notice or doing so under a
previously negotiated reason, is not released from their obligations.
TRUE
What type of contracts are options generally considered to be?
Unilateral
A contract for deed is also known as:
1|Page
,1. Installment sales contract
2. Real estate contract
An advantage to buyers in a lease-purchase option is that:
It can be easier to get a difficult to qualify buyer into a home with a lower down payment.
The real estate sales contract becomes an offer as soon as:
It has been prepared and signed by the purchaser.
At what point has an acceptance of an offer been completed?
Once the offeror has been notified of the offeree's acceptance.
A __________ clause states that a contract remains valid even if one provision of the contract is
rendered invalid.
Severability
Which of these IS NOT one of the major types of REITs?
Commercial
Buyer's agents aware of a "stigma." i.e., psychologically impactful event, on a property are
required to disclose the stigma.
FALSE
Buyer A purchases home from Seller B, but the home burns down the week before closing - the
cause a cigarette dropped by A during a walk-through. As a result:
A likely is obligated to complete the purchase because the damage was A's fault.
Which of these IS NOT listed as a potential damages item for wrongfully failing or refusing to
sign a release acceptable to the escrow agent within 7 days of receipt of the request?
Broker's fees
In what instances may parol (oral) evidence be used to dispute a contractual obligation?
When a party made promises that they never intended to fulfill but used to induced the other
party to sign the contract
Which of these is not a common defense to breach of contract?
Novation
2|Page
, Damages that are accounted for in advance by agreeing to a specific amount of compensation
should the anticipated event occur, are referred to as:
Liquidated damages
A "cloud" on a title means:
There is a possibility of another person or entity having a claim on the property.
An amendment must always reference:
1. The original contract.
2. Names of the parties.
3. Dates of ratification.
Promulgated addenda forms may be found in Paragraph 22 of which addendum form?
One to Four Family Residential Contract (Resale)
The major distinction between "lien theory" and "title theory" states is:
in lien theory states, the borrower holds title, and in title theory states, the lender holds the
title.
Hypothecation is:
The process of a buyer signing a promissory note to repay a debt and the lender taking an
underlying equitable right in the property.
A promissory note is:
A promise to pay a debt.
The Deed of Trust is easier to foreclose on because:
The Deed of Trust is held by a third party.
Owner/seller financing is most common with:
Raw acreage and farmland sales.
The federal CFPB has required that the mortgage servicer wait until the owner is more than 120
days delinquent on payments before the first official notice of filing for a foreclosure, unless:
The lender's sole purpose of notice is to inform the borrower that their payments are
delinquent and/or to explain what loss mitigation options are available.
3|Page
(VERSION 1&2) 2025 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+|NEWEST|LATEST
UPDATE|GUARANTEED PASS
Buyer-broker agency is a relatively new concept in the Texas real estate profession?
TRUE
Lease agreements lasting more than ________ must be in writing to be unenforceable under
the Texas Statute of Frauds.
One year
The leasehold estate owner is said to hold a ____________ interest.
Reversionary
Which of these would NOT be a requirement to create a valid lease agreement?
Financing disclosure
Which form of these lease types is focused primarily on commercial lessees?
Percentage lease
A tenant abandoning a leased property without providing proper notice or doing so under a
previously negotiated reason, is not released from their obligations.
TRUE
What type of contracts are options generally considered to be?
Unilateral
A contract for deed is also known as:
1|Page
,1. Installment sales contract
2. Real estate contract
An advantage to buyers in a lease-purchase option is that:
It can be easier to get a difficult to qualify buyer into a home with a lower down payment.
The real estate sales contract becomes an offer as soon as:
It has been prepared and signed by the purchaser.
At what point has an acceptance of an offer been completed?
Once the offeror has been notified of the offeree's acceptance.
A __________ clause states that a contract remains valid even if one provision of the contract is
rendered invalid.
Severability
Which of these IS NOT one of the major types of REITs?
Commercial
Buyer's agents aware of a "stigma." i.e., psychologically impactful event, on a property are
required to disclose the stigma.
FALSE
Buyer A purchases home from Seller B, but the home burns down the week before closing - the
cause a cigarette dropped by A during a walk-through. As a result:
A likely is obligated to complete the purchase because the damage was A's fault.
Which of these IS NOT listed as a potential damages item for wrongfully failing or refusing to
sign a release acceptable to the escrow agent within 7 days of receipt of the request?
Broker's fees
In what instances may parol (oral) evidence be used to dispute a contractual obligation?
When a party made promises that they never intended to fulfill but used to induced the other
party to sign the contract
Which of these is not a common defense to breach of contract?
Novation
2|Page
, Damages that are accounted for in advance by agreeing to a specific amount of compensation
should the anticipated event occur, are referred to as:
Liquidated damages
A "cloud" on a title means:
There is a possibility of another person or entity having a claim on the property.
An amendment must always reference:
1. The original contract.
2. Names of the parties.
3. Dates of ratification.
Promulgated addenda forms may be found in Paragraph 22 of which addendum form?
One to Four Family Residential Contract (Resale)
The major distinction between "lien theory" and "title theory" states is:
in lien theory states, the borrower holds title, and in title theory states, the lender holds the
title.
Hypothecation is:
The process of a buyer signing a promissory note to repay a debt and the lender taking an
underlying equitable right in the property.
A promissory note is:
A promise to pay a debt.
The Deed of Trust is easier to foreclose on because:
The Deed of Trust is held by a third party.
Owner/seller financing is most common with:
Raw acreage and farmland sales.
The federal CFPB has required that the mortgage servicer wait until the owner is more than 120
days delinquent on payments before the first official notice of filing for a foreclosure, unless:
The lender's sole purpose of notice is to inform the borrower that their payments are
delinquent and/or to explain what loss mitigation options are available.
3|Page
