AYPO Real Estate Law of Contracts Exam
Questions and Answers
An advantage to buyers in a lease-purchase option is which of the following? - -It can be
easier for a difficult to qualify buyer to purchase a home with a lower down payments.
-Eminent domain in Texas MAY NOT be used for which of these purposes? - -Private party
uses.
-Graduated and index leases are what types of leases? - -Variable.
-A "mirror" will is a : - -Reciprocal will.
-Under a land sales contract which of the following statements is accurate? (Best answer.) -
-All of these are accurate.
-Which type of listing agreement is the only one to guarantee the broker a commission in
the event of a successful sale? - -Exclusive-right-to-sell
-A Deed of Trust allows for what type of foreclosure? - -Non- judicial
-Once the offer to purchase and all details and contingencies are agreed upon, and all
parties are signed, which of these should happen next? - -All of these.
-A title search includes a searching of public records to determine these issues, except for:
- -Credit history of the potential buyer.
-Which of these might a certificate of title include? - -Any of these
-Contingencies are best described by which of the following? - -Specific events of
conditions that must occur or be removed for the offer/purchase agreement to be valid.
-Oral agreements in relation to business purchases or hiring of services can be enforceable
under which of these circumstances? - -If the words used can be proven and the intent
reasonably discerned from those words.
-A non-exclusive/not for compensation buyer- broker agreement: - -all of these
-For leases lasting less than ____, oral agreements can be enforceable. - -One year
-Which of these provides the broadest definition of land, property, and ownership rights? -
-Real Property.
, -For a valid contractual offer, the offer must do all except which of the following? - -
Provide terms for an acceptable counter offer.
-Which of these would NOT be a requirement to create a valid lease agreement? - -
Financing disclosure
-Fee simple determinable and fee simple subject to a condition subsequent are the two
forms of: - -Fee simple defeasible estates
-_________________ is a form of ownership held by one party. - -Severalty
-Which of these IS NOT listed among the special inspections? - -Home appliances
-Earnest money is a prospective buyer's demonstration of which of the following? - -Both
of these.
-An encumbrance is a(n) ________ real property. - -All of these
-Once signed by borrowers, the note is which of the following? - -A fully enforceable and
negotiable instrument of debt.
-Providing basic information regarding various standard aspects of real estate law is: - -An
important piece of the fiduciary duty to protect the client's best interests.
-In real estate, a 72- hour clause allowing a party a grace period to change their minds is
called which of the following? - -Escape clause.
-Computerized loan origination (CLO) systems have been approved by the U.S Dept. of
Housing and Urban Development so long as: - -All of these.
-Contracts for deed, lease-purchases, and lease-options for longer than (minimum
mandatory) ___days are legally defines as executory contracts. - -180
-All of the following are required for an amendment to make changes to an existing real
estate contract in Texas, EXCEPT for which of these? - -The amendment must be included
in the actual language of contract and so requires a new contract to be signed.
-Who pays for the inspections and subsequent repairs? - -Who pays is open to negotiation
and, once decided, should be entered into the sales agreement.
-In terms of the closing process, Texas is an ______ state. - -Escrow
-When a property is mortgaged, the buyer executes (signs) which two separate
instruments? - -A promissory note and a security document (either a mortgage or deed of
trust).
Questions and Answers
An advantage to buyers in a lease-purchase option is which of the following? - -It can be
easier for a difficult to qualify buyer to purchase a home with a lower down payments.
-Eminent domain in Texas MAY NOT be used for which of these purposes? - -Private party
uses.
-Graduated and index leases are what types of leases? - -Variable.
-A "mirror" will is a : - -Reciprocal will.
-Under a land sales contract which of the following statements is accurate? (Best answer.) -
-All of these are accurate.
-Which type of listing agreement is the only one to guarantee the broker a commission in
the event of a successful sale? - -Exclusive-right-to-sell
-A Deed of Trust allows for what type of foreclosure? - -Non- judicial
-Once the offer to purchase and all details and contingencies are agreed upon, and all
parties are signed, which of these should happen next? - -All of these.
-A title search includes a searching of public records to determine these issues, except for:
- -Credit history of the potential buyer.
-Which of these might a certificate of title include? - -Any of these
-Contingencies are best described by which of the following? - -Specific events of
conditions that must occur or be removed for the offer/purchase agreement to be valid.
-Oral agreements in relation to business purchases or hiring of services can be enforceable
under which of these circumstances? - -If the words used can be proven and the intent
reasonably discerned from those words.
-A non-exclusive/not for compensation buyer- broker agreement: - -all of these
-For leases lasting less than ____, oral agreements can be enforceable. - -One year
-Which of these provides the broadest definition of land, property, and ownership rights? -
-Real Property.
, -For a valid contractual offer, the offer must do all except which of the following? - -
Provide terms for an acceptable counter offer.
-Which of these would NOT be a requirement to create a valid lease agreement? - -
Financing disclosure
-Fee simple determinable and fee simple subject to a condition subsequent are the two
forms of: - -Fee simple defeasible estates
-_________________ is a form of ownership held by one party. - -Severalty
-Which of these IS NOT listed among the special inspections? - -Home appliances
-Earnest money is a prospective buyer's demonstration of which of the following? - -Both
of these.
-An encumbrance is a(n) ________ real property. - -All of these
-Once signed by borrowers, the note is which of the following? - -A fully enforceable and
negotiable instrument of debt.
-Providing basic information regarding various standard aspects of real estate law is: - -An
important piece of the fiduciary duty to protect the client's best interests.
-In real estate, a 72- hour clause allowing a party a grace period to change their minds is
called which of the following? - -Escape clause.
-Computerized loan origination (CLO) systems have been approved by the U.S Dept. of
Housing and Urban Development so long as: - -All of these.
-Contracts for deed, lease-purchases, and lease-options for longer than (minimum
mandatory) ___days are legally defines as executory contracts. - -180
-All of the following are required for an amendment to make changes to an existing real
estate contract in Texas, EXCEPT for which of these? - -The amendment must be included
in the actual language of contract and so requires a new contract to be signed.
-Who pays for the inspections and subsequent repairs? - -Who pays is open to negotiation
and, once decided, should be entered into the sales agreement.
-In terms of the closing process, Texas is an ______ state. - -Escrow
-When a property is mortgaged, the buyer executes (signs) which two separate
instruments? - -A promissory note and a security document (either a mortgage or deed of
trust).
