Law of Contracts - CHAMPIONS TEST, Exam comprehensive
QUESTIONS AND CORRECT ANSWERS 2025/2026 (VERIFIED
ANSWERS) ALREADY GRADED A+ / NEWEST EXAM!!!
A(n) __________ is a type of seller financing wherein the owner retains title
to the property while the purchaser takes possession of the premises and
pays on the principal. - ANSWERS-contract for deed
Which of the following requires a contract for the conveyance of real estate
to be in writing to be enforceable? - ANSWERS-statute of frauds
If a broker receives more than one offer on a property: - ANSWERS-All
must be presented to the seller unless the seller has instructed the broker
otherwise
a counteroffer is: - ANSWERS-a rejection, a new offer, able to be
withdrawn prior to acceptance
A seller choosing to receive a buyer's earnest money after the buyer
defaults on a contract is an example of: - ANSWERS-liquidated damages
The most common form of financing used by buyers is: - ANSWERS-third
party financing
The Special Provisions paragraph of the contract allows license holders to
insert: - ANSWERS-Factual business details, Statements not addressed in
,the contract, Information for which there is no TREC-promulgated
addendum, lease or mandatory form
An offer by a prospective purchaser can be terminated prior to acceptance
due to: - ANSWERS-expiration of a specified time period, bankruptcy of
either party, a change in the law that renders the contract illegal
A(n) __________ is a provision in a contract that requires that a certain act
or event happens in order for the contract to be binding on the party. -
ANSWERS-contingency
The Lead-Based Paint Disclosure is: - ANSWERS-A federal requirement
for residential property built prior to 1978
The closing date specified in a contract is usually a(n )"__________" date. -
ANSWERS-on or before
In Texas, real estate contracts are subject to satisfactory inspections. -
ANSWERS-false
A(n) __________ to a contract is an attachment that adds or further
describes the rights and duties of the parties. - ANSWERS-addendum
The term __________ is synonymous with contingent. - ANSWERS-subject
to
, Texas Veteran's Housing Assistance Program loans can be: - ANSWERS-
FHA, VA, and convential
The least common form of mortgage financing is - ANSWERS-seller
financing
Real estate agents play a role that includes arranging for the pre-
qualification / pre-approval of buyers. - ANSWERS-true
The __________ is the percentage of the lesser of the appraised value or
sales price that the lender will loan. - ANSWERS-loan-to-value ratio
If the loan factor is $5.53 on a $200,000 loan, taxes are $2400/year and
insurance is $1800/year, what is the monthly PITI payment? - ANSWERS-
1,456
A __________ is a pledge of real estate as security for the repayment of a
debt. - ANSWERS-mortgage
A written history of all instruments and happenings that may affect title is
called: - ANSWERS-an abstract of title
When the title history of a parcel of land has been researched back to the
original conveyance by the government, the history is said to go back to the
__________. - ANSWERS-Sovereignty of the soil
QUESTIONS AND CORRECT ANSWERS 2025/2026 (VERIFIED
ANSWERS) ALREADY GRADED A+ / NEWEST EXAM!!!
A(n) __________ is a type of seller financing wherein the owner retains title
to the property while the purchaser takes possession of the premises and
pays on the principal. - ANSWERS-contract for deed
Which of the following requires a contract for the conveyance of real estate
to be in writing to be enforceable? - ANSWERS-statute of frauds
If a broker receives more than one offer on a property: - ANSWERS-All
must be presented to the seller unless the seller has instructed the broker
otherwise
a counteroffer is: - ANSWERS-a rejection, a new offer, able to be
withdrawn prior to acceptance
A seller choosing to receive a buyer's earnest money after the buyer
defaults on a contract is an example of: - ANSWERS-liquidated damages
The most common form of financing used by buyers is: - ANSWERS-third
party financing
The Special Provisions paragraph of the contract allows license holders to
insert: - ANSWERS-Factual business details, Statements not addressed in
,the contract, Information for which there is no TREC-promulgated
addendum, lease or mandatory form
An offer by a prospective purchaser can be terminated prior to acceptance
due to: - ANSWERS-expiration of a specified time period, bankruptcy of
either party, a change in the law that renders the contract illegal
A(n) __________ is a provision in a contract that requires that a certain act
or event happens in order for the contract to be binding on the party. -
ANSWERS-contingency
The Lead-Based Paint Disclosure is: - ANSWERS-A federal requirement
for residential property built prior to 1978
The closing date specified in a contract is usually a(n )"__________" date. -
ANSWERS-on or before
In Texas, real estate contracts are subject to satisfactory inspections. -
ANSWERS-false
A(n) __________ to a contract is an attachment that adds or further
describes the rights and duties of the parties. - ANSWERS-addendum
The term __________ is synonymous with contingent. - ANSWERS-subject
to
, Texas Veteran's Housing Assistance Program loans can be: - ANSWERS-
FHA, VA, and convential
The least common form of mortgage financing is - ANSWERS-seller
financing
Real estate agents play a role that includes arranging for the pre-
qualification / pre-approval of buyers. - ANSWERS-true
The __________ is the percentage of the lesser of the appraised value or
sales price that the lender will loan. - ANSWERS-loan-to-value ratio
If the loan factor is $5.53 on a $200,000 loan, taxes are $2400/year and
insurance is $1800/year, what is the monthly PITI payment? - ANSWERS-
1,456
A __________ is a pledge of real estate as security for the repayment of a
debt. - ANSWERS-mortgage
A written history of all instruments and happenings that may affect title is
called: - ANSWERS-an abstract of title
When the title history of a parcel of land has been researched back to the
original conveyance by the government, the history is said to go back to the
__________. - ANSWERS-Sovereignty of the soil
