Law of Contracts – Exam Questions With Accurate Answers.
Substitution of a new contract for an existing contract is
A)an assignment.
B)novation.
C)permitted only if the parties have consulted an attorney.
D)not permitted under Texas law. - accurate answers-B
Which of the following describes judicial foreclosure?
A)The property is sold by court order after the mortgagee has given sufficient
public notice
B)In a court-ordered meeting, the lender accepts the deed to the property
from the borrower
C)The parties agree to settle the matter through arbitration
D)The court awards full legal title to the lender after the court establishes a
deadline for the balance of the defaulted debt to be paid in full and the
borrower does not meet the deadline - accurate answers-A
Which item does a lender generally require at the closing?
A)Credit report
B)Application
C)Market value appraisal
D)Title insurance commitment - accurate answers-D
How many and what parties are involved in a deed of trust?
A)Three—the mortgagor, the mortgagee, and the beneficiary
B)Two—the trustee and the trustor
C)Three—the trustee, the trustor, and the beneficiary
D)Two—the mortgagor and the mortgagee - accurate answers-C
The sales contract says the buyer will purchase only if the buyer's current
home closes within the next 30 days. This is called a
A)warranty.
B)consideration.
C)reservation.
, D)contingency. - accurate answers-D
A lease will be valid if it is between a landlord and which of the following
individuals?
A)A man who is obviously drunk at the time he signs the lease
B)A 16-year-old boy who has already graduated from high school
C)A 60-year-old woman who has Alzheimer's disease
D)A 44-year-old woman who uses a wheelchair to get around - accurate
answers-D
What is the makeup of the Texas Broker-Lawyer Committee?
A)Six brokers, six lawyers, and one public member
B)Seven brokers and six lawyers
C)Three brokers, three lawyers, and three public members
D)Six brokers and six lawyers - accurate answers-A
Unlike a sales contract, a listing agreement is
A)an employment contract.
B)an agreement between a buyer and the buyer's agent.
C)oral instead of written.
D)not legally enforceable. - accurate answers-A
All of the following are TREC-promulgated addenda EXCEPT
A)Property Located Seaward of the Gulf Intracoastal Waterway.
B)Information About Brokerage Services.
C)Sale of Other Property by Buyer.
D)Release of Liability on Assumption. - accurate answers-B
If, after the sales contract is signed, the seller decides not to sell, the
A)seller may cancel the contract and retain the buyer's earnest money
deposit.
B)buyer may both get his earnest money back and file for specific
performance.
C)real estate agent forfeits a right to a commission.
Substitution of a new contract for an existing contract is
A)an assignment.
B)novation.
C)permitted only if the parties have consulted an attorney.
D)not permitted under Texas law. - accurate answers-B
Which of the following describes judicial foreclosure?
A)The property is sold by court order after the mortgagee has given sufficient
public notice
B)In a court-ordered meeting, the lender accepts the deed to the property
from the borrower
C)The parties agree to settle the matter through arbitration
D)The court awards full legal title to the lender after the court establishes a
deadline for the balance of the defaulted debt to be paid in full and the
borrower does not meet the deadline - accurate answers-A
Which item does a lender generally require at the closing?
A)Credit report
B)Application
C)Market value appraisal
D)Title insurance commitment - accurate answers-D
How many and what parties are involved in a deed of trust?
A)Three—the mortgagor, the mortgagee, and the beneficiary
B)Two—the trustee and the trustor
C)Three—the trustee, the trustor, and the beneficiary
D)Two—the mortgagor and the mortgagee - accurate answers-C
The sales contract says the buyer will purchase only if the buyer's current
home closes within the next 30 days. This is called a
A)warranty.
B)consideration.
C)reservation.
, D)contingency. - accurate answers-D
A lease will be valid if it is between a landlord and which of the following
individuals?
A)A man who is obviously drunk at the time he signs the lease
B)A 16-year-old boy who has already graduated from high school
C)A 60-year-old woman who has Alzheimer's disease
D)A 44-year-old woman who uses a wheelchair to get around - accurate
answers-D
What is the makeup of the Texas Broker-Lawyer Committee?
A)Six brokers, six lawyers, and one public member
B)Seven brokers and six lawyers
C)Three brokers, three lawyers, and three public members
D)Six brokers and six lawyers - accurate answers-A
Unlike a sales contract, a listing agreement is
A)an employment contract.
B)an agreement between a buyer and the buyer's agent.
C)oral instead of written.
D)not legally enforceable. - accurate answers-A
All of the following are TREC-promulgated addenda EXCEPT
A)Property Located Seaward of the Gulf Intracoastal Waterway.
B)Information About Brokerage Services.
C)Sale of Other Property by Buyer.
D)Release of Liability on Assumption. - accurate answers-B
If, after the sales contract is signed, the seller decides not to sell, the
A)seller may cancel the contract and retain the buyer's earnest money
deposit.
B)buyer may both get his earnest money back and file for specific
performance.
C)real estate agent forfeits a right to a commission.
