FINC 676 - Midterm Exam
Questions & Answers 100% Pass
Which of the following is NOT considered separate property in Texas? -
CORRECT ANSWER-The income generated by separate property
Which of the following entities pass ordinances? - CORRECT ANSWER-Cities
and Counties
What is a statute? - CORRECT ANSWER-A law created by a state legislature or
by Congress
The process by which a neutral third-party assists parties in a conflict situation,
hopefully arriving at a mutually acceptable solution, is called? - CORRECT
ANSWER-Mediation
What court has exclusive original jurisdiction for an eviction (FED) action? -
CORRECT ANSWER-Justice of the Peace Court
What purpose of a letter of intent on behalf of a purchaser? - CORRECT
ANSWER-The purpose of a letter of intent for a prospective purchaser is to
achieve an exclusive right to purchase a real estate project at a maximum purchase
,price in accordance with certain terms and conditions including earnest money,
due diligence materials, inspection period, closing date and extension rights.
What are four possible issues to consider for an indemnitor/information receiver
regarding a proposed confidentiality agreement? - CORRECT ANSWER--
Confidential Information
- Number of Indemnities
- Standard of Care
- Term
- Destruction of Confidential Information
- Unrelated Provisions
- Legal Proceeding
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
, - Permitted Reviewers
- Enforceable Two-Party Agreement
Although a Letter of Intent is not necessarily required to be fully enforceable... as a
purchaser ... What are two (2) items that you would require to be enforceable? -
CORRECT ANSWER-1. Confidentiality
2. Exclusivity regarding the topic of the letter of intent
Under Texas law, which of the following is the dominant estate? - CORRECT
ANSWER-Subsurface Rights
Which type of deed, both in statute and case law, ensures the highest warranty the
law recognizes? - CORRECT ANSWER-General Warranty Deed
When an estate is limited to the happening of a certain event, and that event
happens, the estate may be terminated by the grantor and taken back. This is
called? - CORRECT ANSWER-Fee on condition subsequent
When an estate is limited to the happening of a certain event, and that event
happens, the estate is terminated and automatically reverts to the grantor. This is
called? - CORRECT ANSWER-Fee on Conditional Limitation (Determinable Fee,
Fee Simple Defeasible)
Questions & Answers 100% Pass
Which of the following is NOT considered separate property in Texas? -
CORRECT ANSWER-The income generated by separate property
Which of the following entities pass ordinances? - CORRECT ANSWER-Cities
and Counties
What is a statute? - CORRECT ANSWER-A law created by a state legislature or
by Congress
The process by which a neutral third-party assists parties in a conflict situation,
hopefully arriving at a mutually acceptable solution, is called? - CORRECT
ANSWER-Mediation
What court has exclusive original jurisdiction for an eviction (FED) action? -
CORRECT ANSWER-Justice of the Peace Court
What purpose of a letter of intent on behalf of a purchaser? - CORRECT
ANSWER-The purpose of a letter of intent for a prospective purchaser is to
achieve an exclusive right to purchase a real estate project at a maximum purchase
,price in accordance with certain terms and conditions including earnest money,
due diligence materials, inspection period, closing date and extension rights.
What are four possible issues to consider for an indemnitor/information receiver
regarding a proposed confidentiality agreement? - CORRECT ANSWER--
Confidential Information
- Number of Indemnities
- Standard of Care
- Term
- Destruction of Confidential Information
- Unrelated Provisions
- Legal Proceeding
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
, - Permitted Reviewers
- Enforceable Two-Party Agreement
Although a Letter of Intent is not necessarily required to be fully enforceable... as a
purchaser ... What are two (2) items that you would require to be enforceable? -
CORRECT ANSWER-1. Confidentiality
2. Exclusivity regarding the topic of the letter of intent
Under Texas law, which of the following is the dominant estate? - CORRECT
ANSWER-Subsurface Rights
Which type of deed, both in statute and case law, ensures the highest warranty the
law recognizes? - CORRECT ANSWER-General Warranty Deed
When an estate is limited to the happening of a certain event, and that event
happens, the estate may be terminated by the grantor and taken back. This is
called? - CORRECT ANSWER-Fee on condition subsequent
When an estate is limited to the happening of a certain event, and that event
happens, the estate is terminated and automatically reverts to the grantor. This is
called? - CORRECT ANSWER-Fee on Conditional Limitation (Determinable Fee,
Fee Simple Defeasible)
