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Law of Contracts 1-9

Total questions: 21

Worksheet time: 11mins

Name
Class
Date
1.

All of the following are contracts promulgated by TREC EXCEPT:

a)

Lease to Purchase Contract

b)

Farm and Ranch Contract

c)

Unimproved Property Contract

d)

One to Four Family Residential Contract

2.

A breach of the lease occurs when a tenant refuses to vacate the property upon the expiration of the lease. When a tenant will not vacate, the lease becomes a(n):

a)

tenancy at sufferance

b)

illegal occupation

c)

suffrage operation

d)

illegal tenancy

3.

Which of the following is NOT a valid reason for a party to discharge a contract?

a)

liquidated damages

b)

partial performance

c)

mutual agreement

d)

operation of law

4.

In Texas, if a lease gives the tenant the option to purchase the property at the end of the lease term, what kind of contract is that?

a)

executory

b)

execution

c)

expired

d)

executed

5.

When is the buyer entitled to receive the Seller’s Disclosure Notice and all information about the condition of the property?

a)

before making an offer

b)

before closing

c)

after closing

d)

within three days of the acceptance of the offer

6.

Frank is the listing agent for a house that has had its foundation repaired. Frank believes that information could harm his seller, so Frank does not tell potential buyers about it. Frank advised the seller not to mention it on his seller’s disclosure. Is Frank in danger of ending up in court?

a)

Yes, he could be sued under DTPA.

b)

No, Frank is taking care of his seller.

7.

To be enforceable, the statute of frauds requires all real estate contracts:

a)

be in writing

b)

be closed within one year

c)

be filed at the country clerks office

d)

pass through the three essential stages

8.

In order for a loan to be approved, the lender must approve both the buyer and the:

a)

property

b)

seller

c)

financing

d)

loan origination

9.

Which type of co-ownership for married couples dictates that each spouse has half ownership of any property obtained during the marriage, and cannot be sold without the signatures of both spouses?

a)

community property

b)

in severalty

c)

tenancy in common

d)

joint tenancy

10.

Mary is leasing an apartment. She just purchased a ceiling fan for her apartment. While the ceiling fan is still in the box, the ceiling fan is:

a)

personal property

b)

land

c)

easement

d)

real estate

11.

Which of the following laws affecting real estate prohibits discrimination in housing based upon race, color, religion, or national origin?

a)

the Fair Housing Act

b)

the Deceptive Trade Practices Act

c)

the Texas Real Estate License Act

d)

the Uniform Commercial Code

12.

TREC approves and promulgates many forms for license holders' use. These include:

a)

sales contracts and addenda

b)

property management agreements

c)

contracts, property management agreements, and listing agreements

d)

listing agreements and leases

13.

What is the primary purpose of the Broker-Lawyer Committee?

a)

to create, edit, and recommend contract forms to TREC

b)

to create and codify real estate rules for TREC

14.

A seller's property has flooded three times in the past year. When he sells it, he tells his agent but does not disclose the flooding to the buyer. The buyer asks if the creek nearby has ever flooded, and the agent said not that he was aware of. What Act could the agent be guilty of violating?

a)

DTPA

b)

RESPA

c)

TREC

d)

ECOA

15.

A broker is helping a government agency locate a building they can buy for an office. The agency has its own form they want the agent to use when they make their offer. Can the agent do that legally?

a)

Yes, a government agency can require their own form to be used.

b)

No, it would be a violation of TRELA.

c)

No, it is a violation of the Rules of the Commission

d)

No, they must use the promulgated form.

16.

Which of the following is NOT an essential element of a valid contract?

a)

EARNEST MONEY

b)

CONSIDERATION

c)

LAWFUL OBJECTIVE

d)

LEGALLY COMPETENT PARTIES

17.

A contract is signed by a minor. The contract is:

a)

voidable

b)

void

c)

unenforceable

d)

valid

18.

When the terms of a contract have not been completely executed or performed, it is considered to be what kind of contract?

a)

executory

b)

bilateral

c)

unilateral

d)

executed

19.

The Environmental Protection Agency requires sellers of houses built before 1978 to furnish buyers with a:

a)

Lead-Based Paint Disclosure Form

b)

Mold Disclosure Form

c)

Radon Discovery Form

20.

Emmy owns her house. She has full ownership rights to her property, could sell it whenever she wants, and can pass the property on to her heirs. What kind of estate does Emmy have?

a)

fee simple absolute estate

b)

fee simple determinable estate

c)

leasehold estate

21.

Lisa shares a driveway with her neighbor. The driveway is on Lisa’s property, but Lisa allows her neighbor to use the driveway. What is this an example of?

a)

an easement

b)

an encroachment