T E X AS LA W O F C O N T R A C T S : 2 0 2 6
M I D T E RM P RE P - S O L VE D P A S T
E X A M S & K E Y DE FI N I T I ON S
abstract of title - CORRECT ANSWER -an abbreviated history of a property, including
info on any transfers, grants, wills, conveyances, liens, and encumbrances
acceleration clause - CORRECT ANSWER -clause in a security instrument
(mortgage/deed of trust) which makes the entire loan amount due immediately upon
default
accessible - CORRECT ANSWER -that which can be approached, entered, or viewed
without hazards, specialized equipment, or damaging property
accession - CORRECT ANSWER -refers to the acquisition of new land or real
property by artificial or natural means
actual damages - CORRECT ANSWER -monetary compensation given to an injured
party for losses that were a result of the actions or omissions of another party
actual notice - CORRECT ANSWER -notice given to a specific party regarding the
ownership of a property
adaptation - CORRECT ANSWER -the use and modification of a particular item for a
specific use in a property — specific use for a property could deem an item as real
property
addenda - CORRECT ANSWER -documents containing additional terms, information,
or obligations that are attached to a contract / a document that's attached to a
purchase agreement that includes additional information or requests items not
included in the purchase agreement
agency - CORRECT ANSWER -a relationship where one party is authorized to act on
behalf of the other
air rights - CORRECT ANSWER -ownership rights to the air above a property,
extending from the surface of the land up into space
, alienation - CORRECT ANSWER -the process and act of transferring property from
one party to another
allodial system - CORRECT ANSWER -system of ownership in which land is owned
completely, without an obligation of services or duties to another
amendment - CORRECT ANSWER -a document that changes the terms in a sales
contract that has been previously agreed to by all the parties; requires all parties to
sign the amendment for it to be valid / a change in a legal document made by
adding, altering, or omitting a certain part or term
Americans with Disabilities Act - CORRECT ANSWER -identified and defined
protected disabilities, as well as required all new buildings with employees or public
access to provide reasonable access for people with protected disabilities
annexation - CORRECT ANSWER -attaching (or affixing) personal property to real
estate in a way that transforms the personal property into real property
approved contracts - CORRECT ANSWER -contracts that are allowed by the Texas
Real Estate Commission but not required
assignment - CORRECT ANSWER -the transference of obligations in a contract from
one party to another
beneficiary - CORRECT ANSWER -the recipient of advantage or gain from an act or
instrument such as a trust, will, or insurance policy
bilateral - CORRECT ANSWER -having or involving two sides, often with some
degree of reciprocal impact or obligation
bill of sale - CORRECT ANSWER -a certificate of transfer of personal property
breach of contract - CORRECT ANSWER -occurs when the terms or conditions of a
contract have been violated
closing - CORRECT ANSWER -the final step in the home-buying process, during
which the title to the property is transferred from the seller to the buyer and
consideration is paid to the seller
common law - CORRECT ANSWER -the side of law which arises from judgements
and decisions made in courts rather than explicit legislation
community property - CORRECT ANSWER -a special form of joint tenancy that
exists between a married couple, with each owning a one-half interest; any house or
real estate purchased during a marriage is considered community property
M I D T E RM P RE P - S O L VE D P A S T
E X A M S & K E Y DE FI N I T I ON S
abstract of title - CORRECT ANSWER -an abbreviated history of a property, including
info on any transfers, grants, wills, conveyances, liens, and encumbrances
acceleration clause - CORRECT ANSWER -clause in a security instrument
(mortgage/deed of trust) which makes the entire loan amount due immediately upon
default
accessible - CORRECT ANSWER -that which can be approached, entered, or viewed
without hazards, specialized equipment, or damaging property
accession - CORRECT ANSWER -refers to the acquisition of new land or real
property by artificial or natural means
actual damages - CORRECT ANSWER -monetary compensation given to an injured
party for losses that were a result of the actions or omissions of another party
actual notice - CORRECT ANSWER -notice given to a specific party regarding the
ownership of a property
adaptation - CORRECT ANSWER -the use and modification of a particular item for a
specific use in a property — specific use for a property could deem an item as real
property
addenda - CORRECT ANSWER -documents containing additional terms, information,
or obligations that are attached to a contract / a document that's attached to a
purchase agreement that includes additional information or requests items not
included in the purchase agreement
agency - CORRECT ANSWER -a relationship where one party is authorized to act on
behalf of the other
air rights - CORRECT ANSWER -ownership rights to the air above a property,
extending from the surface of the land up into space
, alienation - CORRECT ANSWER -the process and act of transferring property from
one party to another
allodial system - CORRECT ANSWER -system of ownership in which land is owned
completely, without an obligation of services or duties to another
amendment - CORRECT ANSWER -a document that changes the terms in a sales
contract that has been previously agreed to by all the parties; requires all parties to
sign the amendment for it to be valid / a change in a legal document made by
adding, altering, or omitting a certain part or term
Americans with Disabilities Act - CORRECT ANSWER -identified and defined
protected disabilities, as well as required all new buildings with employees or public
access to provide reasonable access for people with protected disabilities
annexation - CORRECT ANSWER -attaching (or affixing) personal property to real
estate in a way that transforms the personal property into real property
approved contracts - CORRECT ANSWER -contracts that are allowed by the Texas
Real Estate Commission but not required
assignment - CORRECT ANSWER -the transference of obligations in a contract from
one party to another
beneficiary - CORRECT ANSWER -the recipient of advantage or gain from an act or
instrument such as a trust, will, or insurance policy
bilateral - CORRECT ANSWER -having or involving two sides, often with some
degree of reciprocal impact or obligation
bill of sale - CORRECT ANSWER -a certificate of transfer of personal property
breach of contract - CORRECT ANSWER -occurs when the terms or conditions of a
contract have been violated
closing - CORRECT ANSWER -the final step in the home-buying process, during
which the title to the property is transferred from the seller to the buyer and
consideration is paid to the seller
common law - CORRECT ANSWER -the side of law which arises from judgements
and decisions made in courts rather than explicit legislation
community property - CORRECT ANSWER -a special form of joint tenancy that
exists between a married couple, with each owning a one-half interest; any house or
real estate purchased during a marriage is considered community property
