Real Estate Principles 1 – Texas Exam Questions with Correct Answers 100% Verified By
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Tenancy by the Entirety Form of ownership used for married couples that do not have
community property. The four unities plus the unity of person
PITI Loan Payment: Principal, Interest, Taxes and Insurance
CLUE Comprehensive Loss Underwriting Exchange: History of all the insurance claims made
on a property
General Partners Organize the partnership, work in and manage the business, contribute
money to the business and are financially liable for the business
Limited Partners Contribute money to the business but have little say about the operation of
the business
Limited Liability Companies Flexible form of a company that blends elements of partnership
and corporation ownership.
Corporations Group of people who are allowed to run their business in the name of the
corporation
Real Estate Investment Trust Many people who can go together and invest in real estate.
Beneficiaries Individuals who invest in real estate
Beneficial Interset Shares that investors buy in the company
, Expressed Contracts Contract that is in writing or in oral where the parties state the terms
and conditions of the contract as well as the duties each will carry out. .
Implied Contract an understanding between parties
Bilateral Contracts a promise in exchange for a promise: Ex: Seller and Agent
Unilateral Contract Promise in exchnge for an act: Seller and Buyer
Executed Contract Contract that has been completely performed
Executory Contract Contract that is being carried out
Valid Contract A good contract that meets all of the legal requirements for a contract and is
enforceable in a court of law
Void Contract Was never a contract and will never be a contract.
Voidable Contract binding against one part but not against the other party
Unenforceable Contract one that cannot be enforced in a court of law.
Five Essential Elements that make a contract valid Competent parties, legal objective,
consideration, offer and acceptance, contract in writing and signed .
Novation of Contracts the substitution of a contract for a contract
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Tenancy by the Entirety Form of ownership used for married couples that do not have
community property. The four unities plus the unity of person
PITI Loan Payment: Principal, Interest, Taxes and Insurance
CLUE Comprehensive Loss Underwriting Exchange: History of all the insurance claims made
on a property
General Partners Organize the partnership, work in and manage the business, contribute
money to the business and are financially liable for the business
Limited Partners Contribute money to the business but have little say about the operation of
the business
Limited Liability Companies Flexible form of a company that blends elements of partnership
and corporation ownership.
Corporations Group of people who are allowed to run their business in the name of the
corporation
Real Estate Investment Trust Many people who can go together and invest in real estate.
Beneficiaries Individuals who invest in real estate
Beneficial Interset Shares that investors buy in the company
, Expressed Contracts Contract that is in writing or in oral where the parties state the terms
and conditions of the contract as well as the duties each will carry out. .
Implied Contract an understanding between parties
Bilateral Contracts a promise in exchange for a promise: Ex: Seller and Agent
Unilateral Contract Promise in exchnge for an act: Seller and Buyer
Executed Contract Contract that has been completely performed
Executory Contract Contract that is being carried out
Valid Contract A good contract that meets all of the legal requirements for a contract and is
enforceable in a court of law
Void Contract Was never a contract and will never be a contract.
Voidable Contract binding against one part but not against the other party
Unenforceable Contract one that cannot be enforced in a court of law.
Five Essential Elements that make a contract valid Competent parties, legal objective,
consideration, offer and acceptance, contract in writing and signed .
Novation of Contracts the substitution of a contract for a contract
