Law of contracts-FINAL EXAM
Questions and Answers (Verified Answers)
1. Texas Real Estate License Act: the law which established the Texas RealEstate
Commission, who is responsible for its enforcement
2. what law established the texas real estate commission?: the texas realestate license
act
3. whose mission is the following: to protect consumers' economic welfareby ensuring that
licensees properly can carry out their fiduciary responsi- bilities to clients, are qualified
and competent, and adhere to professional standards: TREC
4. personal property is conveyed with a " " and real
property with a " ": personal property is conveyed with a bill of sale andreal
property is conveyed with a deed
5. What does the termination option state in a contract?: the termination optionstates that
for a sum of money negotiated between the parties, the buyer has a time period for the
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, "unrestricted right" to terminate
6. When does an offer become a contract?: 1. must be signed by all parties, all changes
must be initialed, and a broker or his agent must complete the "executed date" on the form
2. the broker must deliver "notice" to the other party. If several days pass between the
signatures and the delivery, the executed date will be the later day
7. what does unconscionable action or course of action mean?: This meansan act or
practice which, to a consumer's detriment, takes advantage of the lack of knowledge,
ability, experience, or capacity of the consumer to a grossly unfair degree
8. What three things will a licensee be held liable for if they do?: 1. commitsan
unconscionable act
2. misrepresent a material fact
3. fail to disclose information with the intention of inducing a consumer into a
transaction
9. Which of the following practices could be considered practicing law by a real estate
broker for the sale or lease of real property?
A. Use of a form prepared by the broker's company
B. Use of a form prepared by an attorney
C. Use of a form prepared by the property owner
D. Use of a form promulgated by TREC: A
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Questions and Answers (Verified Answers)
1. Texas Real Estate License Act: the law which established the Texas RealEstate
Commission, who is responsible for its enforcement
2. what law established the texas real estate commission?: the texas realestate license
act
3. whose mission is the following: to protect consumers' economic welfareby ensuring that
licensees properly can carry out their fiduciary responsi- bilities to clients, are qualified
and competent, and adhere to professional standards: TREC
4. personal property is conveyed with a " " and real
property with a " ": personal property is conveyed with a bill of sale andreal
property is conveyed with a deed
5. What does the termination option state in a contract?: the termination optionstates that
for a sum of money negotiated between the parties, the buyer has a time period for the
1/8
, "unrestricted right" to terminate
6. When does an offer become a contract?: 1. must be signed by all parties, all changes
must be initialed, and a broker or his agent must complete the "executed date" on the form
2. the broker must deliver "notice" to the other party. If several days pass between the
signatures and the delivery, the executed date will be the later day
7. what does unconscionable action or course of action mean?: This meansan act or
practice which, to a consumer's detriment, takes advantage of the lack of knowledge,
ability, experience, or capacity of the consumer to a grossly unfair degree
8. What three things will a licensee be held liable for if they do?: 1. commitsan
unconscionable act
2. misrepresent a material fact
3. fail to disclose information with the intention of inducing a consumer into a
transaction
9. Which of the following practices could be considered practicing law by a real estate
broker for the sale or lease of real property?
A. Use of a form prepared by the broker's company
B. Use of a form prepared by an attorney
C. Use of a form prepared by the property owner
D. Use of a form promulgated by TREC: A
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