WorksheetsLaw of Contracts Chapter quizzes
Total questions: 110
Worksheet time: 1hrs 23mins
The DTPA helps protect...?
Agents
Consumers
Sellers
Attorneys
In order to help prevent the buyer from withdrawing their offer, when should a seller provide a prospective buyer with the property disclosure form...?
After the contract is signed with the prospective buyer
Before the prospective buyer makes an offer
After the prospective buyer's offer is accepted
After the prospective buyer's home inspector conducts their inspection of the property
How can an agent avoid the unauthorized practice of law...?
Refuse to provide legal advice
Have their client's attorney perform any edits to the contract form
Refer their client to an attorney for legal advice
All of the above
The duties and powers of TREC are described in which of the following documents...?
RESPA
TRELA
DTPA
NAR
Who is authorized to provide legal advice to sellers...?
Attorneys
Brokers
Agents
All of the above
Who oversees the Broker/Lawyer Committee...?
The Texas Attorney General
The Texas Real Estate Commission
The Texas Governor
The Texas Bureau of Real Estate
Section 1101.155 of the Texas Real Estate License Act deals with which of the following...?
Rules regarding independent contractors
Rules regarding the Texas contract forms
Rules regarding broker conduct
Rules regarding agency relationships
The moral principles that govern a person's or group's behavior are known as...?
Ethics
Statutes
Guidelines
Laws
Where can agents and brokers look to find the most up to date promulgated contract forms...?
Realtor.com
TREC website
BRE website
All of the above
Once TREC approves a form drafted or edited by the Broker/Lawyer Committee, the form is considered...?
Void
Promulgated
Recorded
Reviewed
The individual who contributes real property to a trust is considered the...?
Trustee
Trustor
Grantee
Beneficiary
Personal property that has become real property by having been permanently attached or adapted to real property is known as a...?
Chattel
Fixture
Trade fixture
Emblement
Married couples in Texas typically own property as...?
Community property
Severalty ownership
Tenancy by the entirety
Joint tenancy
Ownership in a cooperative consists of which of the following...?
Proprietary lease
Title
Real property
Deed
Real estate is considered land plus...?
Bundle of rights
Surface rights
Man-made improvements
All of the above
The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property is known as...?
Real estate
Title
Bundle of rights
Chattels
Personal property is also known as...?
Real estate
Chattels
Emblements
Fixtures
Items that are installed by a commercial tenant and are removable upon termination of the tenancy are considered...?
Emblements
Fixtures
Trade fixtures
Real property
Real estate plus the bundle of rights is known as...?
Land
Real estate
Real property
Chattels
A trust involves a trustor, trustee, and a...?
Attorney
Broker
Grantor
Beneficiary
A contract that has been fully performed is considered a/an...?
Void contract
Closed contract
Executory contract
Executed contract
Which of the following is an example of a unilateral contract...?
Net listing
Open listing
Exclusive right to sell agreement
Exclusive agency agreement
Which of the following is considered a bilateral contract...?
Net listing agreement
Sales contract
Exclusive right to sell agreement
All of the above
A valid contract must include which of the following...?
Offer and acceptance
Consideration
Legal purpose
All of the Above
A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...?
Statute of Limitations
Statute of Frauds
Statute of Agency
Statute of Contracts
A contract in which something remains to be done by one or both of the parties is considered a/an...?
Executed contract
Executory contract
Void contract
Open contract
An independent contractor agreement is considered what type of contract...?
Unilateral contract
Implied contract
Bilateral contract
Void contract
Anything given or promised by a party to include another to enter into a contract is called...?
Consideration
Novation
Conversion
Assignment
If a contract requires a party to not do something, it is referred to as...?
Blocking
Forbearance
Consideration
Performance
If a contract requires a party to do something, it is referred to as...?
Closing
Performance
Consideration
Forbearance
A freehold estate created for the duration of the life or lives of certain named persons is known as a...?
Fee simple absolute estate
Leasehold estate
Fee simple determinable estate
Life estate
A right acquired by one party to use the land of another party for a special purpose is referred to as a/an...?
Easement
Encroachment
Lien
Homestead
Utility companies typically hold what type of easement...?
Easement by prescription
Dominant easement
Easement by necessity
Easement in gross
After a fee simple determinable estate ends, the interest in the property reverts back to the...?
Remainderman
Tenant
Tenant
Grantor
There are two primary types of estate in land, freehold estates and...?
Trust estates
Absolute estates
Temporary estates
Leasehold estates
Which of the following is an example of an involuntary lien...?
Mechanic's lien
Tax lien
Judgment lien
All of the Above
This type of easement exists when a landowner has no access to roads and is landlocked...?
Dominant easement
Easement by prescription
Easement in gross
Easement by necessity
Which of the following may impact an owner's interest in a property...?
Easements
Liens
Encumbrance
All of the above
Which of the following acronyms can be used to describe the powers the government possesses over real property...?
PETE
PITI
SADDLE
RESPA
Which of the following is an example of a voluntary lien...?
Tax lien
Mortgage lien
Judgment lien
All of the above
An options agreement is included in which of the following contracts...?
Exclusive Right to Sell Agreement
Net Listing Agreement
One to Four Family Residential Contract (resale)
Residential Listing Contract
Which of the following exists without a contract or lease, and is unspecified in duration or exchange of payment...?
Estate for years
Temporary estate
Tenancy at sufferance
Tenancy at will
A tenant is also referred to as a...?
Grantee
Lessor
Grantor
Lessee
A ready, willing, and able buyer means the buyer...?
Is ready to sign the sales contract
Has the financial means to close on the property
Is ready to move towards closing on the property
All of the above
A landlord is also referred to as a...?
Lessor
Grantee
Grantor
Lessee
A real estate developer may be interested in which of the following types of leases...?
Net lease
Percentage lease
Gross lease
Ground lease
The buyer is the .....................in a Buyer Agency Agreement?
Broker
Principal
Agent
Customer
A residential lease is typically what type of lease...?
Ground lease
Net lease
Gross lease
Percentage lease
Which of the following leasehold estates will automatically renew...?
Estate at sufferance
Estate from period to period
Estate at will
Estate for years
A percentage lease is typically used with what type of tenant...?
Industrial tenant
Retail tenant
Office tenant
Residential tenant
What does the vendor offer a vendee in a transaction...?
A property free of any cosmetic defects
Equitable title
Money
All of the above
A clause written in a sales contract that states the buyer must be allowed to terminate the contract if he/she cannot obtain financing is an example of which of the following...?
Contingency
Acknowledgement
Notice
Bulletin
The commingling of funds may lead to which of the following...?
Conversion
Steering
Blockbusting
Redlining
A home warranty is typically valid for up to how many months after a buyer purchases a property....?
3 months
6 months
12 months
24 months
If a party cannot close on the agreed upon closing date, and an amendment isn't made to the contract, the party is said to be in...?
Rescission of contract
Blocked contract
Breach of contract
Execution of contract
Which of the following must be included in a valid sales contract...?
Legal description of the property
The signatures of buyer and seller
The price and terms of the transactions
All of the above
Which of the following deeds is most commonly used to transfer residential property in Texas...?
Quitclaim deed
Bargain and sale deed
Deed without covenants
General warranty deed
The party that receives a counter-offer is called the...?
Counter-offeree
Counter-offeror
Offeror
Offeree
The party that receives the offer is called the...?
Grantee
Offeree
Grantor
Offeror
The buyer's earnest money is normally held by which of the following...?
The County Clerk
The escrow agent
The seller themselves
The buyer's attorney
How do addendums affect a contract...?
They add content to the existing contract
They void the contract
They modify the existing content of the contract
All of the above
Which of the following addenda are used when the buyer is obtaining a conventional mortgage to purchase a property...?
Sellers financing addendum
Reverse mortgage addendum
Loan assumption addendum
Third party financing addendum
Which of the following is the most common type of contingency found in sales contracts...?
Insurance contingency
1031 Exchange contingency
Seller financing contingency
Mortgage contingency
Amy is negotiating the purchase of a new house. What contingencies may Amy add to the sales contract...?
Mortgage contingency
Mortgage contingency
Title contingency
All of the above
Ely is in the process of purchasing a new house and needs to obtain a mortgage. In addition to a mortgage contingency, what other contingency may Ely add to the sales contract...?
Appraisal contingency
Credit contingency
Disclosure contingency
Moving contingency
Who selects the appraiser to be used to appraise a property under contract...?
The buyer's broker
The lender
The seller's broker
An independent third party service
The amount that a bank will lend on a property is based on which of the following...?
The contract price only
The appraised value only
The higher of the contract price or the appraised value
The lesser of the contract price or the appraised value
Which of the following contingencies ensures that the buyer will receive clear title to the property...?
Appraisal contingency
Title contingency
Mortgage contingency
Inspection contingency
Which of the following contingencies allows a buyer to get out of a sales contract if he/she cannot sell their existing home...?
Property sale contingency
Inspection contingency
Exchange contingency
Mortgage contingency
Lisa recently signed a sales contract to purchase a new house. In the contract, Lisa needed to add a mortgage contingency. This contingency makes the contract a/an ................contract?
Executed
Unenforceable
Assigned
Voidable
Non-judicial foreclosure favors which of the following...?
The broker
The Trustee
The Lender
The borrower
Which of the following operates in the primary mortgage market...?
Credit unions
Commercial banks
Savings and loans
All of the Above
A mortgagee is typically the...?
Seller
Buyer
Lender
Borrower
Which of the following operates in the secondary mortgage market...?
Fannie Mae
Ginnie Mae
Freddie Mac
All of the above
The taking of a title to property by a grantee wherein the grantee assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property, is known as...?
Release of a mortgage
"Subject-to" a mortgage
Assumption of mortgage
Alienation of a mortgage
Mark recently obtained a mortgage and signed a promissory note with the lender. Which of the following is most likely included in Mark's promissory note...?
The amount of the debt
The interest rate of the loan
The time and method of payment of the debt
All of the above
When is an acceleration clause typically executed...?
At the assignment of mortgage
When the property is leased
When the property is taxed
At the Sale of the Property
This occurs when monthly installment payments are insufficient to pay the interest accruing on the principal balance, so that the unpaid interest must be added to the principal due...?
Inflation
Deflation
Negative amortization
Amortization
A mortgagor is also referred to as a...?
Lender
Seller
Borrower
Creditor
Judicial foreclosure favors which of the following...?
The broker
The lender
The Trustee
The borrower
The seller in a residential sales transaction is considered the...?
Trustor
Trustee
Grantee
Grantor
A suit to quiet title is used to do which of the following...?
Remove an owner from title
Fix a defect in title
Add on to a title
Record a title
Which of the following is required in a valid deed...?
Habendum clause
Consideration
A granting clause
All of the above
Who conducts a title search...?
A title abstractor
A real estate broker
A lender
A property owner
Which of the following deeds offers the most amount of protection to the buyer...?
General warranty deed
Bargain and sale deed
Special warranty deed
Quitclaim deed
This form of involuntary alienation involves the taking of property through the open, notorious, continuous, and hostile occupancy of the property...?
Adverse possession
Foreclosure
Condemnation
Eminent domain
David recently lost his property through a foreclosure sale. This is an example of...?
Voluntary grant
Voluntary alienation
Improper transfer
Involuntary alienation
Which of the following is obtained as a result of a title search...?
Record of title
Abstract of title
Survey of title
Summary of title
The transfer of title freely by the owner is referred to as...?
Voluntary alienation
Granting
Trustor
Involuntary alienation
Liens are generally prioritized based on which of the following...?
Liens are not prioritized over one another
The amount of the lien
The desire of the property owner
The date when the lien was recorded
Which of the following should be done if the seller agrees to offer the buyer a credit for defects found during the property inspection...?
Provide an addendum to the original contract
Provide a bulletin to the original contract
Amend the original contract
Draft a new contract
Which of the following Acts helps prevent consumers from getting charged higher than anticipated fees by lenders at closing...?
Mortgage Disclosure Improvement Act
Lender Disclosure Act
Mortgage Settlement Act
Financing Disclosure Act
Title which is not encumbered or burdened with defects is known as...?
General title
Clear title
Clouded title
Effective title
The division of certain settlement costs between a buyer and seller is known as...?
Escrow
Settlement
Proration
Conversion
An appraiser will document the appraised value of a house on the...?
Uniform Residential Appraisal Report
Texas Appraisal Report
National Appraisal Report
HUD Appraisal Form
What should a buyer do in preparation for closing...?
Conduct the final walk-through
Obtain a cashier's check
Compare the good faith estimate to the HUD-1 form
All of the Above
When representing a seller, what is the very first form the broker must have the seller review and sign...?
Purchase contract
Disclosure of Agency
Information About Brokerage Services
Listing contract
How does a pre-approval letter from a lender help a buyer...?
It gives the buyer an estimated closing date
It determines what size house a buyer can purchase
It gives the buyer an idea of how much they can afford
It determines where a buyer can purchase a house
Which of the following is included in a lender's good faith estimate...?
A survey of the property
The lender's loan origination fee
An appraisal of the property
All of the above
The escrow agent typically serves as the...?
Closing agent
Attorney
Seller's agent
Lender representative
The Special Provisions part of a contract are to be used for...?
Legal description of the property
Subjective details
Factual statements and business details
All of the above
When added to a contract, which of the following should be included in parenthesis...?
Middle name
First name
Nicknames
Last name
Which of the following is a common mistake found in contracts...?
The parties do not initial each page of the contract
The parties are not listed by their legal names
The legal description of the property is not included
All of the above
The seller must deliver which of the following at closing...?
Defective title
Clouded title
Marketable title
Un-marketable title
The party's signatures in a contract must match which of the following...?
The Legal Names Listed at the Beginning of the Contract
The name they are commonly referred to
The last name of each party
The first name of each party
Items that are considered personal property should be included in the...?
Real property addendum
Non-realty addendum
Chattel addendum
Itemized addendum
James is in the process of finalizing a contract to purchase a new house. What must James complete with the seller in order to use e-signatures to sign the contract...?
Electronic Agreement Form
Electronic Addendum
Electronic Consent Form
E-signature Form
When should the buyer and seller negotiate between real and personal property items...?
At closing
Just before closing
At the very beginning of the transaction
Right after closing
Which of the following items may be difficult to distinguish as real or personal property...?
Chandeliers
Stoves
Door hardware
Rugs
How should a property be described in a typical sales contract...?
Using the name of the legal entity
Using the legal description of the property
Using the block number only
Using the address of the property
