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AYPO REAL ESTATE LAW OF CONTRACTS (VERSION 1&2)
NEWEST 2025 ACTUAL EXAM 2025/2026 NEWEST ACTUAL
EXAM WITH COMPLETE QUESTIONS AND VERIFIED
ANSWERS |ALREADY GRADED A+|
A __________ clause states that a contract remains valid even if
one provision of the contract is rendered invalid. - ANSWER-
Severability
Which of these IS NOT one of the major types of REITs? -
ANSWER-Commercial
Buyer's agents aware of a "stigma." i.e., psychologically impactful
event, on a property are required to disclose the stigma. -
ANSWER-FALSE
Buyer A purchases home from Seller B, but the home burns down
the week before closing - the cause a cigarette dropped by A
during a walk-through. As a result: - ANSWER-A likely is obligated
to complete the purchase because the damage was A's fault.
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Which of these IS NOT listed as a potential damages item for
wrongfully failing or refusing to sign a release acceptable to the
escrow agent within 7 days of receipt of the request? - ANSWER-
Broker's fees
In what instances may parol (oral) evidence be used to dispute a
contractual obligation? - ANSWER-When a party made promises
that they never intended to fulfill but used to induced the other
party to sign the contract
Which of these is not a common defense to breach of contract? -
ANSWER-Novation
Damages that are accounted for in advance by agreeing to a
specific amount of compensation should the anticipated event
occur, are referred to as: - ANSWER-Liquidated damages
A "cloud" on a title means: - ANSWER-There is a possibility of
another person or entity having a claim on the property.
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An amendment must always reference: - ANSWER-1. The original
contract.
2. Names of the parties.
3. Dates of ratification.
Promulgated addenda forms may be found in Paragraph 22 of
which addendum form? - ANSWER-One to Four Family
Residential Contract (Resale)
The major distinction between "lien theory" and "title theory"
states is: - ANSWER-in lien theory states, the borrower holds title,
and in title theory states, the lender holds the title.
Hypothecation is: - ANSWER-The process of a buyer signing a
promissory note to repay a debt and the lender taking an
underlying equitable right in the property.
A promissory note is: - ANSWER-A promise to pay a debt.
AYPO REAL ESTATE LAW OF CONTRACTS (VERSION 1&2)
NEWEST 2025 ACTUAL EXAM 2025/2026 NEWEST ACTUAL
EXAM WITH COMPLETE QUESTIONS AND VERIFIED
ANSWERS |ALREADY GRADED A+|
A __________ clause states that a contract remains valid even if
one provision of the contract is rendered invalid. - ANSWER-
Severability
Which of these IS NOT one of the major types of REITs? -
ANSWER-Commercial
Buyer's agents aware of a "stigma." i.e., psychologically impactful
event, on a property are required to disclose the stigma. -
ANSWER-FALSE
Buyer A purchases home from Seller B, but the home burns down
the week before closing - the cause a cigarette dropped by A
during a walk-through. As a result: - ANSWER-A likely is obligated
to complete the purchase because the damage was A's fault.
, Page |2
Which of these IS NOT listed as a potential damages item for
wrongfully failing or refusing to sign a release acceptable to the
escrow agent within 7 days of receipt of the request? - ANSWER-
Broker's fees
In what instances may parol (oral) evidence be used to dispute a
contractual obligation? - ANSWER-When a party made promises
that they never intended to fulfill but used to induced the other
party to sign the contract
Which of these is not a common defense to breach of contract? -
ANSWER-Novation
Damages that are accounted for in advance by agreeing to a
specific amount of compensation should the anticipated event
occur, are referred to as: - ANSWER-Liquidated damages
A "cloud" on a title means: - ANSWER-There is a possibility of
another person or entity having a claim on the property.
, Page |3
An amendment must always reference: - ANSWER-1. The original
contract.
2. Names of the parties.
3. Dates of ratification.
Promulgated addenda forms may be found in Paragraph 22 of
which addendum form? - ANSWER-One to Four Family
Residential Contract (Resale)
The major distinction between "lien theory" and "title theory"
states is: - ANSWER-in lien theory states, the borrower holds title,
and in title theory states, the lender holds the title.
Hypothecation is: - ANSWER-The process of a buyer signing a
promissory note to repay a debt and the lender taking an
underlying equitable right in the property.
A promissory note is: - ANSWER-A promise to pay a debt.
