Law Of Contracts

Front 1

The TREC residential contract forms are:

Back 1

drafted by the Broker Lawyer Committee

Front 2

Wrongful or criminal deception intended to result in financial or personal gain is called:

Back 2

fraud

Front 3

Under the Deceptive Trade Practices Act, __________ are defined as tangible chattels.

Back 3

goods

Front 4

If a sellers will continue to occupy the property for one month after the closing, the buyer and the seller should:

Back 4

enter into a Seller's Temporary Residential Lease

Front 5

The Buyer and the Seller Temporary Residential Lease forms may be used for a lease period not to exceed:

Back 5

90 days

Front 6

A Seller's Disclosure Notice is not required:

Back 6

at a foreclosure sale

Front 7

The type of law that deals with the relationship between the parties to a transaction, sales agents and brokers is:

Back 7

agency law

Front 8

__________ is the body of laws and regulations enacted by federal and state legislative bodies.

Back 8

statutory law

Front 9

__________ extend above the surface without limitation.

Back 9

air rights

Front 10

Any man-made addition to the land that is permanent, and is considered to become part of the land is known as a __________

Back 10

improvement

Front 11

A __________ is an entity created for the benefit of another.

Back 11

Trust

Front 12

A option contract is:

Back 12

a unilateral contract

Front 13

__________ is not a requirement of a valid contract.

Back 13

earnest money

Front 14

If a person has been judged to be incompetent, a contract is __________ because the person never had the capacity to enter into a contract in the first place.

Back 14

void

Front 15

The five essential elements of a valid and enforceable contract are, Consideration, Offer and Acceptance, Legal Purpose, In Writing and __________

Back 15

competent parties

Front 16

A __________ is an agreement between two or more parties to do something or to refrain from doing something.

Back 16

contract

Front 17

When an individual owns real property, he or she is said to have a __________ in that property.

Back 17

freehold estate

Front 18

If property violates zoning, the owners must request a __________, which is permission to violate the rules.

Back 18

variance

Front 19

An example of an appurtenance would be:

Back 19

esaements

Front 20

There is no upper limit on the value of a Texas homestead.

Back 20

true

Front 21

A _________ is an area of land separating one land use from another.

Back 21

buffer zone

Front 22

The French term __________ means a life estate that is based on the life of another.

Back 22

pur autre vie

Front 23

In a residential lease with a "right of first refusal" provision:

Back 23

the tenant has the right to match or better any offer the landlord receives to prevent the property from being sold to someone else

Front 24

A __________ is an employment agreement between the seller and the broker.

Back 24

listing agreement

Front 25

A __________ is one that combines some of the elements of a sale with a lease.

Back 25

lease purchase agreement

Front 26

Prior to closing, severe damage to or destruction of a property under contract:

Back 26

can result in the termination of the contract

Front 27

The four major types of listing agreements are, exclusive agency, net listing, exclusive rights to sell and __________

Back 27

open listing

Front 28

In a __________ lease, the tenant's rent is based, in whole on in part, on the receipts of his or her business.

Back 28

percentage lease

Front 29

A ___________ 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.

Back 29

contract for deed

Front 30

Which of the following requires a contract for the conveyance of teal estate to be in writing to be enforceable?

Back 30

Statute of frauds

Front 31

If a broker receives more than one offer on a property:

Back 31

all must be presented to the seller unless the seller has instructed the broker otherwise

Front 32

A counteroffer is:

Back 32

a new offer, a rejection, able to be withdrawn prior to acceptance

Front 33

A seller choosing to receive a buyer's earnest money after the buyer defaults on a contract is an example of:

Back 33

liquidated damages

Front 34

The most common form of financing used by buyers is:

Back 34

third party financing

Front 35

The special provisions paragraph of the contact allows license holders to insert:

Back 35

factual business details, statements not addressed in the contract, information for which there is no TREC-promulgated addendum, lease or mandatory form

Front 36

An offer by a prospective purchaser can be terminated prior to acceptance due to:

Back 36

expiration of a specified time period, bankruptcy of either party, a change in the law that renders the contract illegal

Front 37

A __________ is a provision in a contract that requires a certain act or event happens in order for the contract to be binding to the party.

Back 37

contingency

Front 38

The Lead-Based Paint Disclosure is:

Back 38

a federal requirement for residential property built prior to 1978

Front 39

The closing date specified in a contract is usually a "_________" date.

Back 39

on or before

Front 40

In Texas, real estate contracts are subject to satisfactory inspections.

Back 40

False

Front 41

A __________ to a contract is an attachment that adds or further describes the rights and duties of the parties.

Back 41

addendum

Front 42

The term __________ is synonymous with contingent.

Back 42

subject to

Front 43

Texas Veteran's Housing Assistance Program loans can be:

Back 43

VA, FHA, conventional

Front 44

The least common form of mortgage financing is:

Back 44

seller financing

Front 45

Real estate agents play a role that includes arranging for the pre-qualification/approval of buyers.

Back 45

true

Front 46

The _________ is the percentage of the lesser of the appraised value or sales price that the lender will loan.

Back 46

loan-to-value ratio

Front 47

A __________ is a pledge of real estate as security for the repayment of a debt.

Back 47

mortgage

Front 48

A written history of all instruments and happenings that may affect title is called:

Back 48

an abstract of title

Front 49

When the title history of a parcel of land has been researched back to the original conveyance of the government, the history is said to go back to the __________

Back 49

sovereignty of the soil

Front 50

__________ is the process by which a lender exercises its power of sale under a mortgage that is in default.

Back 50

foreclosure

Front 51

__________ occurs when an individuals dies, leaving no valid will.

Back 51

intestate succession

Front 52

A __________ description of property is a requirement for a valid deed.

Back 52

legal

Front 53

__________ occurs when an individual title from the rightful owner through hostile, actual and continuous occupation of the land for the statutory period.

Back 53

adverse possession

Front 54

RESPA regulates closings on:

Back 54

1-4 family residential properties with federally related financing

Front 55

__________ of RESPA prohibits any person who, pursuant to any agreement or understanding, gives or receives a fee or a thing of value for the referral of settlement business.

Back 55

section 8

Front 56

__________ implements the Real Estate Settlement Procedures Act.

Back 56

regulation X

Front 57

Ongoing expenses such as property taxes and property owners association fees that are divided between the buyer and the seller at closing are called __________.

Back 57

prorations

Front 58

Rule P-53 of the Texas Department of Insurance states that Title Companies:

Back 58

cannot provide food and beverages for a picnic for a single firm, cannot provide an annual party for a single firm, cannot provide continuing education classes unless they charge the market rate for those classes