Real Estate Practice Exam

Front 1

There are many legal remedies when a contract is

Back 1

Breached (default)

partial performance, terminate by mutual agreement and/or stronger legal remedies

Front 2

Texas RE Sales Contract remedies are

Back 2

Liquidated Damages, Specific Performance and Sue for Actual / Economic Damages

Front 3

When "damages" are agreed to in advance and would be "earnest money" as related to the RE Sales Contract is

Back 3

Liquidated Damages

Front 4

The contract is cancelled it is called

Back 4

Recission

Front 5

The receipt of earnest money "restores" the other party back to their original position is called

Back 5

Restitution

Front 6

This approach allows one party to "force" the other party to perform based on the terms of the contract is called

Back 6

Specific Performance

Front 7

The law or set of laws that require contracts to be in writing is called the

Back 7

Statute of Frauds

Front 8

Buyer must compensate his or her agent whenever purchasing a property described w/in the designated contract period

Back 8

Exclusive Right Agreement

Front 9

Buyer's agent is assured of buyer loyalty relative to any other agents - however buyer may purchase w/o assistance from agent and thus w/o any compensation due to buyer's agent

Back 9

Exclusive Agreement

Front 10

Buyer can work w/ more than one buyer's agent at the same time but owes compensation only if the buyer uses the services of a buyer's broker - Procuring Cause

Back 10

Open Agreement

Front 11

All listing and buyer agency agreements are between

Back 11

broker and client

-not salesperson-

Front 12

Contract by which the owner (optionor) gives the prospective buyer (optionee) the right to buy at a fixed price w/in a period of time (time is of the essence) - optionee pays the fee for this right and assumes no obligation to make any other payment until optionee decides to either exercise the option right or allow the option to expire is called an

Back 12

Option Agreement