Real Estate Law Of Contracts

Front 1

Which of the following statutes or acts creates the need for a contract for the sale to be in writing?

*Statute of Uses Act

*Recording Act

*Real Estate Licensing Act

*Statute of Frauds

Back 1

Statute of Frauds

Front 2

The typical listing contract, regardless of form, will contain which of the following?

I. description of the property

II. seller's obligation to pay a commission

III. terms on which the seller wishes to sell the property

Back 2

All of these are Correct

Front 3

What form must be used to terminate a contract?

*an approved TREC form

*notice of Termination of Contract

*both

*neither

Back 3

both

Front 4

Which of the following real estate agreements would have the liquidated damages clause?

*listing agreement

*purchase and sale agreement

*closing documents

*employment contract

Back 4

listing agreement

Front 5

Which of the following statements regarding real estate is correct?

I. negotiating a contract with a minor can be legally accomplished through the minor's guardian

II. in selling property to a corporation, the seller should examine the corporate resolution authorizing specific persons to legally sign for the corporation

III. a contract signed by an obviously intoxicated person can be rescinded

Back 5

All of these

Front 6

When a buyer submits an offer, it can be terminated by:

I. rejection by the offeree

II. a counter-offer

III. revocation by the offeror

Back 6

Any of these

Front 7

As licensed inspectors go through a home:

*they follow TREC's "Standards of Practice"

*they report conditions "in need of repair"

*they look for hazards that could cause injury

*all statements are correct

Back 7

All statements are correct

Front 8

Wilma agreed to buy Paul's property for $155,000 and signed an earnest money agreement with a deposit of $15,000. Wilma gave the earnest money agreement to a broker for Paul. Paul was unable to give marketable title in escrow and so Wilma asked for the return of her earnest money from the broker. The broker should: *return the earnest money to Wilma after the broker deducts her commission *divide the earnest money in half and return one-half to Wilma and one-half to Paul *return the entire amount to Wilma *forward the entire amount to Paul

Back 8

return the entire amount to Wilma

Front 9

The seller is still liable for their current loan until:

*they obtain a release of liability from their note holder

*closing

*buyer's credit check pans out

*the note is paid in full

Back 9

they obtain a release of liability from their note holder

Front 10

To be a valid real estate contract for all involved parties, the sales contract must:

I. contain an accurate description of the property

II. be signed by both buyer and seller

III. be between competent parties

Back 10

All of these

Front 11

If the buyer feels that the New Home Contract filled out by the listing broker did not address construction problems and is not correct, the buyer must respond:

Back 11

within 60 days of filing suit to recover damages

Front 12

A property owner signed an exclusive right-to-sell listing for his property for a term of six months with a broker. The price was set at $230,000; the commission was to be seven percent. Unfortunately, a fire destroyed the property during the listing period. Under these circumstances

Back 12

the broker is not entitled to a commission and the listing is terminated

Front 13

When in receipt of an offer to purchase and the seller makes a counter-offer, the prospective purchaser is:

Back 13

relieved of his original offer

Front 14

All notices between buyers and sellers must be:

Back 14

in writing

Front 15

Within the realm of real estate contracts, which of the following statements concerning counter-offers is true?

I. if the counter-offer is refused the original offer is open for acceptance

II. material changes made to an original offer constitute a counter-offer

Back 15

II only

Front 16

Helen signed a listing agreement with broker Joe. The house was shown and a buyer is coming forward. Unfortunately, Helen died prior to signing a purchase and sale agreement. What happens now?

Back 16

the listing agreement is terminated

Front 17

Seller Helen gave the subdivision rules to buyer Linda. 10 days later, the subdivision adopted 3 more rules. What should be done?

Back 17

Helen should notify Linda of the new rules in writing

Front 18

Under the Statute of Frauds, a valid listing for the purpose of selling real estate requires the broker to have:

Back 18

a written contract

Front 19

Which of the following would be considered a 3rd party financier?

*the buyer's uncle giving cash for the down payment

*the buyer's mortgage lender

*money from the buyer's savings account

*money from the buyer's checking account

Back 19

the buyer's mortgage lender

Front 20

Which of the following statements is correct regarding real estate brokering?

*the commission a broker may charge for the sale of a home is controlled by regulations of the Real Estate Commissioner

*in an exclusive agency listing, a seller may sell without being liable for paying a commission *any agreement to divide commissions between cooperating brokers must be in writing *under no circumstances may a broker collect a commission after a listing has expired

Back 20

in an exclusive agency listing, a seller may sell without being liable for paying a commission

Front 21

When principal broker Simmons died, she had 50 listings. The business, including all its assets, was left to her daughter, Jana, who was also a licensed real estate broker. If the daughter wished to legally collect commissions on the sale of the listed properties, she would be required to:

Back 21

negotiate a new listing with each of the 50 property owners

Front 22

If an offer was made and then followed by a counter-offer, who would be making the counter-offer?

Back 22

the seller

Front 23

When practicing professional real estate as a salesperson with a client, you be considered all the following EXCEPT:

*a special agent

*a fiduciary

*a general agent

*an agent of your broker

Back 23

a general agent

Front 24

When a contract has been fully performed under the terms outlined is is considered:

Back 24

executed

Front 25

All of the following could be considered new assessments except:

*newly paved roads

*new sidewalks

*new street lights

*new refrigerator

Back 25

new refrigerator

Front 26

Under contract law, a valid contract needs a series of elements. They are:

Back 26

competent parties promising to do or not to do certain things for legal consideration, provided the agreement is with a lawful object in mind

Front 27

Which of the following closing expenses would not be paid by the purchaser?

*loan origination fee

*appraisal fee

*pay off of existing lien

Back 27

pay off of existing lien

Front 28

The buyer can list specific corrections needed to be made on the subject property in what part of the contract?

Back 28

acceptance of property conditions

Front 29

A legal name to a contract is:

Back 29

name appearing on the birth record

Front 30

All of the following statements about listing agreements for residential properties are correct EXCEPT:

*the listing agreement is a contract for sale of real estate

*all contracts of employment must contain a definite termination date

*a legible copy of the signed listing must be given to the principal

*the agreement must be in writing to be enforceable

Back 30

the listing agreement is a contract for sale of real estate

Front 31

Seller's disclosure of lead-based paint requires the broker to keep a copy of the form for:

Back 31

3 years

Front 32

The Texas Family Residential Contract can be utilized in the transaction as long as:

Back 32

there are no more than 4 units

Front 33

TREC emphasizes the need for buyers to:

*do all repairs themselves

*hire their friends to make home corrections

*only purchase newly constructed homes

*none of these

Back 33

none of these

Front 34

The tenant under the TREC Temporary Lease Agreement should seek legal advice from:

Back 34

his/her attorney

Front 35

The association information needed for the Condominium Resale Certificate is found:

Back 35

in the declaration booklet

Front 36

Seller must disclose

Back 36

any known defects or malfunctions

Front 37

When discussing an earnest money agreement, a licensee has to consider it:

Back 37

a legally enforceable contract immediately upon the sellers acceptance and communication of acceptance to the buyer

Front 38

When buying into a subdivision with a Owner's Association, the buyer can:

I. not require delivery of subdivision information

II. require delivery and the buyer's approval

III. notify the owner's association of rejected rules

Back 38

I and II

Front 39

All would be part of subdivision information except:

*county records of lots sizes and pricing

*restrictions applying to the subdivision

*by-laws and rules of the Owner's Association

*resale certificate

Back 39

county records of lots sizes and pricing

Front 40

A formal contract created for the purpose of an illegal objective is:

Back 40

void

Front 41

The seller under the TREC Temporary Lease Agreement is the:

Back 41

landlord

Front 42

A subdivision can have an Owner's Association based on:

Back 42

mandatory membership of all owners

Front 43

Broker Barbara is showing a home that she has listed with her firm. Broker Barbara is functioning as:

Back 43

a dual agent

Front 44

If selling a ranch in West Texas, the legal description that would probably be used would include:

I. Lot and Block description

II. Metes and Bounds description

Back 44

II only

Front 45

A broker states to a buyer that "his house exceeds the insulation requirements of the State" when the house does not meet the requirements. This is an example of:

Back 45

misrepresentation

Front 46

When a Purchase and Sale Agreement is presented to the seller, it is:

Back 46

an offer by the buyer

Front 47

If the buyer's lender has objections to problems with the seller's property, the seller:

Back 47

has 15 days to make corrections

Front 48

When a buyer signs an earnest money agreement and gives it to the seller's broker with an earnest money check:

Back 48

the transaction is considered an offer until the seller accepts the agreement and the acceptance is communicated to the buyer

Front 49

When a seller offers to sign a listing agreement, it is essentially:

Back 49

an employment contract

Front 50

A contract must not be for an illegal purpose or against public policy. This is referred to as:

Back 50

legality of object

Front 51

Cal gave a broker a written offer to purchase property, which contained a 20-day acceptance clause along with a $12,000 deposit. On the sixth day, prior to acceptance by the seller, the Cal notified the broker that he was withdrawing his offer and demanded return of the deposit. Which of the following statements is true? *the buyer cannot withdraw the offer until the end of the 20-day period *the buyer may revoke his offer anytime before the seller's acceptance is communicated to him and may obtain the return of his deposit *the buyer may revoke his offer anytime before he is notified of the seller's acceptance, but he will lose the deposit

Back 51

the buyer may revoke his offer anytime before the seller's acceptance is communicated to him and may obtain the return of his deposit

Front 52

Which of these conditions would NOT require an environmental assessment?

*dismantled gas pumps on a farm

*meth lab

*dirty cat liter box

*presence of endangered wildlife living in pond

Back 52

dirty cat liter box

Front 53

Suggesting a title insurance company in order to receive a rebate is an example of:

Back 53

illegal kick-back

Front 54

In practicing professional real estate, you owe a fiduciary responsibility to:

Back 54

all involved parties

Front 55

Which of the following would need an environmental assessment?

*inherited home built in 1986

*cattle farm

*newly constructed home

*property with an underground oil tank

Back 55

property with an underground oil tank

Front 56

Which of the following can require repairs and treatments for a new home purchase?

I. buyer

II. spouse of buyer

III. lender for the buyer

IV. escrow company

Back 56

I, II, and III

Front 57

If a broker obtains an exclusive agency listing from a seller, it guarantees the broker a commission:

Back 57

if any broker sells the property

Front 58

The main aspect that TREC wants buyers to know about an owner's association is the:

Back 58

property use restrictions

Front 59

When a broker presents Purchase and Sale Agreement to the seller, the broker is:

Back 59

an agent of the buyer

Front 60

The listing agreement:

I. is a personal aspect contract

II. between the seller and broker

III. must be in writing

Back 60

I, II, and III