Law of Contracts Exam Questions With Accurate Solutions.
In 1955 the act's name was changed to - accurate answers-the Texas Real
Estate License Act (TRELA)
In 1939 the Texas legislature passed the - accurate answers-Real Estate
Dealer's License Act, which required real estate agents to obtain licenses.
What is the difference between an addendum and an amendment? - accurate
answers-An addendum is a document attached to and made a part of the
original contract. An amendment is a document that makes a change to the
ratified sales contract.
What is a contingency? - accurate answers-A provision in a real estate
contract that specifies the contract would cease to exist upon the occurrence
of a certain event.
Define counteroffer. - accurate answers-An offer made in response to a
previous offer by the other party during negotiations for a final contract
What does the term proration mean? - accurate answers-The amount of or the
act of determining a portion or share of a cost or benefit to be allocated
between two parties
The purpose of TRELA and the rules of TREC are to what? - accurate answers-
Protect the Public
A license holder may help a party read the documents but must not offer
what? - accurate answers-Legal advice or opinions
If a licensee participates in the unauthorized practice of law, what may
happen to him or her? - accurate answers-Suspension or revocation of the
licensee's license
What actions if done to a contract by a licensee would be construed as the
licensee acting as an attorney? - accurate answers-Drawing lines through
words or adding words, phrases, or sentences to the contract
, In commercial real estate sales and leases, what is customary for both buyers
and sellers and tenants and landlords to have? - accurate answers-Legal
counsel throughout the transaction
What committee operates today according to the Texas Real Estate License
Act and under the jurisdiction of the Texas Real Estate Commission? - accurate
answers-Broker-Lawyer Committee
Explain what the Broker-Lawyer Committee does. - accurate answers-The
Committee is an advisory body which drafts and recommends certain contract
forms to TREC for use by license holders. The TREC directors review the
Committee's recommendations and then approve and promulgate the forms.
During the time a new form is being introduced by TREC, which forms should
licensees use? - accurate answers-Licensees can use either the old form or the
new one.
Define fraud. - accurate answers-An act of deception which was done
deliberately by someone to get an unfair advantage over someone else
Define misrepresentation. - accurate answers-Misrepresentation is created
when a licensee made a misleading statement or a false statement that was
accepted as fact from a customer or client and the person was damaged by
relying on that information.
What is the purpose of the Deceptive Trade Practices Consumer Protection
Act? - accurate answers-To protect the public from deceptive, false, or
misleading business practices
Under the DTPA, the plaintiff must give the potential defendant 60 days
warning about what? - accurate answers-The intention to file and an outline of
the complaint and damages
What does TRELA Section 537.11 use of Standard Contract Forms state? -
accurate answers-When negotiating contracts binding the sale, exchange,
option, lease or rental of any interest in real property, a real estate licensee
shall use only those contract forms promulgated by the Texas Real Estate
Commission for that kind of transaction.
In 1955 the act's name was changed to - accurate answers-the Texas Real
Estate License Act (TRELA)
In 1939 the Texas legislature passed the - accurate answers-Real Estate
Dealer's License Act, which required real estate agents to obtain licenses.
What is the difference between an addendum and an amendment? - accurate
answers-An addendum is a document attached to and made a part of the
original contract. An amendment is a document that makes a change to the
ratified sales contract.
What is a contingency? - accurate answers-A provision in a real estate
contract that specifies the contract would cease to exist upon the occurrence
of a certain event.
Define counteroffer. - accurate answers-An offer made in response to a
previous offer by the other party during negotiations for a final contract
What does the term proration mean? - accurate answers-The amount of or the
act of determining a portion or share of a cost or benefit to be allocated
between two parties
The purpose of TRELA and the rules of TREC are to what? - accurate answers-
Protect the Public
A license holder may help a party read the documents but must not offer
what? - accurate answers-Legal advice or opinions
If a licensee participates in the unauthorized practice of law, what may
happen to him or her? - accurate answers-Suspension or revocation of the
licensee's license
What actions if done to a contract by a licensee would be construed as the
licensee acting as an attorney? - accurate answers-Drawing lines through
words or adding words, phrases, or sentences to the contract
, In commercial real estate sales and leases, what is customary for both buyers
and sellers and tenants and landlords to have? - accurate answers-Legal
counsel throughout the transaction
What committee operates today according to the Texas Real Estate License
Act and under the jurisdiction of the Texas Real Estate Commission? - accurate
answers-Broker-Lawyer Committee
Explain what the Broker-Lawyer Committee does. - accurate answers-The
Committee is an advisory body which drafts and recommends certain contract
forms to TREC for use by license holders. The TREC directors review the
Committee's recommendations and then approve and promulgate the forms.
During the time a new form is being introduced by TREC, which forms should
licensees use? - accurate answers-Licensees can use either the old form or the
new one.
Define fraud. - accurate answers-An act of deception which was done
deliberately by someone to get an unfair advantage over someone else
Define misrepresentation. - accurate answers-Misrepresentation is created
when a licensee made a misleading statement or a false statement that was
accepted as fact from a customer or client and the person was damaged by
relying on that information.
What is the purpose of the Deceptive Trade Practices Consumer Protection
Act? - accurate answers-To protect the public from deceptive, false, or
misleading business practices
Under the DTPA, the plaintiff must give the potential defendant 60 days
warning about what? - accurate answers-The intention to file and an outline of
the complaint and damages
What does TRELA Section 537.11 use of Standard Contract Forms state? -
accurate answers-When negotiating contracts binding the sale, exchange,
option, lease or rental of any interest in real property, a real estate licensee
shall use only those contract forms promulgated by the Texas Real Estate
Commission for that kind of transaction.
