Law of Contracts | Exam Questions with
Solutions | 100% Correct - Verified
• Community property is:
only applicable to divorced couples
not a legal term in the state of Texas
a special form of joint tenancy that exists between a married couple
owned by an individual -✓✓a special form of joint tenancy that exists between a married
couple
• ??? is the legislation that governs the licensing of Texas real estate license holders.
While ???, on the other hand, enforces those provisions. -✓✓Texas Real Estate
License Act is the legislation that governs the licensing of Texas real estate license
holders. While TREC, on the other hand, enforces those provisions.
• Which of the following individuals would TREC regulate?
a maintenance worker
a timeshare developer
a landscape architect
a mortgage banker -✓✓a timeshare developer
*Mortgage bankers, maintenance workers, and landscape architects are not governed
by TREC. TREC regulates those who work more directly in real estate, including
timeshare developers, real estate educators, and inspectors.
• The Texas Real Estate Commission does not write or change TRELA.
TRUE
FALSE -✓✓TRUE
*TREC enforces the laws that the Texas State Legislature passes.
• All real estate agents MUST:
use contracts promulgated by TREC
create contracts and addenda specific to their clients' needs
All choices are correct.
offer legal advice to the best of their abilities to their clients -✓✓use contracts
promulgated by TREC
• A broker is helping a government agency locate a building they can buy for an office.
The agency has their own form they want the agent to use when they make their offer.
Can the agent do that legally?
Yes, a government agency can require their own form to be used.
No, they must use the promulgated form.
No, it would be a violation of TRELA.
,No, it is a violation of the Rules of the Commission. -✓✓Yes, a government agency can
require their own form to be used.
• Samantha has been found guilty of the unauthorized practice of law. Which of the
following is the most likely example of a possible TREC penalty?
Samantha's license is suspended and she is fined.
Samantha is charged with a felony.
Samantha receives a mild warning.
Samantha receives a short prison sentence. -✓✓Samantha's license is suspended and
she is fined.
• What is the primary purpose of the Broker-Lawyer Committee?
to arbitrate real estate contract disputes
to promulgate transaction forms, making them voluntary or required
to create and codify real estate rules for TREC
to create, edit, and recommend contract forms to TREC -✓✓to create, edit, and
recommend contract forms to TREC
• The ???? committee creates, edits, and recommends contact forms. ??? then has the
power to approve, promulgate, or dismiss those contract forms. -✓✓The Broker-Lawyer
committee creates, edits, and recommends contact forms. TREC then has the power to
approve, promulgate, or dismiss those contract forms.
• A form that TREC requires agents to use is called a(n):
approved contract
unilateral contract
promulgated contract
committee contract -✓✓promulgated contract
• How many brokers are on the Broker-Lawyer Committee?
3
6
4
9 -✓✓6
• Marissa, a license holder, is assisting a seller in the sale of their condo. Does she
need to use a promulgated contract?
No. There are no promulgated contracts in Texas.
Yes. She'll need to use the Condominium Contract.
No. Marissa can write up the contract herself.
Yes. She'll need to use the Residential Contract. -✓✓Yes. She'll need to use the
Condominium Contract.
• An example of a TREC promulgated contract is the:
Improved Property Contract
,Farm and Ranch Contract
One to Five Residential Contract (Resale)
Condominium and Co-op Contract -✓✓Farm and Ranch Contract
• Which law protects consumers from fraudulent schemes?
Statute of Limitations
Deceptive Trade Practices Act
Statute of Frauds
Doctrine of Laches -✓✓Deceptive Trade Practices Act
• ??? law is law derived from past judicial decisions of courts. ???? law refers to laws
formally created by lawmakers, such as legislatures. -✓✓Common law is law derived
from past judicial decisions of courts. Statutory law refers to laws formally created by
lawmakers, such as legislatures.
• What is real estate?
land and water
improvements and water
land and improvements
land, water, and improvements -✓✓land and improvements
• Thanks to the rule of capture, surface right owners have the right to:
planes (if the planes cross over their property)
oil (if they bring it up to the surface)
groundwater (if they can pump it up to the surface)
rivers (if the body of water touches their property) -✓✓groundwater (if they can pump it
up to the surface)
• If Jenna has the water rights to a property, she has the rights to use:
the groundwater
the well
the rainwater
the stream -✓✓the stream
*a river or stream.
• What is a fixture?
real property that's transformed into an abstract
personal property that's transformed into an abstract
personal property that's transformed into real property
real property that's transformed into personal property -✓✓personal property that's
transformed into real property
• Shane bought a ceiling fan from Home Depot. It's still in the box and not attached to
the ceiling. What is it considered?
a cool gadget
, annexation
real property
personal property -✓✓personal property
• A seller has a flat-screen TV. To mount the TV, the seller puts brackets on the wall.
What are the brackets considered?
a nuisance
personal property
real property
personalty -✓✓real property
• Jane is selling her house and wants to sell the washer to the buyer as well. The
washer is not annexed to the real estate and is considered personal property. What kind
of document should Jane's license holder use to transfer ownership of the washer?
contract
notepad
bill of sale
deed -✓✓bill of sale
• Jami has a beautiful 10-year-old oak tree planted in her backyard. What is the oak tree
considered to be?
fixture
personal property
real estate
annexation -✓✓real estate
• What is NOT a unique characteristic of land?
inherent value
immobility
indestructibility
non-homogeneity -✓✓inherent value
*Indestructibility, non-homogeneity, and immobility are all part of land's unique
characteristics. Inherent value is not one of land's unique characteristics.
• What are land's economic characteristics?
abundant, moveable, permanent, everywhere
indestructibility, immobility, non-homogeneity, abundant
moveable, modification, investment, permanent
scarcity, situs (location), modification, fixity -✓✓scarcity, situs (location), modification,
fixity
• When a married couple purchases a home in Texas, who is required to sign the deed?
both partners
whoever has the nicest signature
one partner
Solutions | 100% Correct - Verified
• Community property is:
only applicable to divorced couples
not a legal term in the state of Texas
a special form of joint tenancy that exists between a married couple
owned by an individual -✓✓a special form of joint tenancy that exists between a married
couple
• ??? is the legislation that governs the licensing of Texas real estate license holders.
While ???, on the other hand, enforces those provisions. -✓✓Texas Real Estate
License Act is the legislation that governs the licensing of Texas real estate license
holders. While TREC, on the other hand, enforces those provisions.
• Which of the following individuals would TREC regulate?
a maintenance worker
a timeshare developer
a landscape architect
a mortgage banker -✓✓a timeshare developer
*Mortgage bankers, maintenance workers, and landscape architects are not governed
by TREC. TREC regulates those who work more directly in real estate, including
timeshare developers, real estate educators, and inspectors.
• The Texas Real Estate Commission does not write or change TRELA.
TRUE
FALSE -✓✓TRUE
*TREC enforces the laws that the Texas State Legislature passes.
• All real estate agents MUST:
use contracts promulgated by TREC
create contracts and addenda specific to their clients' needs
All choices are correct.
offer legal advice to the best of their abilities to their clients -✓✓use contracts
promulgated by TREC
• A broker is helping a government agency locate a building they can buy for an office.
The agency has their own form they want the agent to use when they make their offer.
Can the agent do that legally?
Yes, a government agency can require their own form to be used.
No, they must use the promulgated form.
No, it would be a violation of TRELA.
,No, it is a violation of the Rules of the Commission. -✓✓Yes, a government agency can
require their own form to be used.
• Samantha has been found guilty of the unauthorized practice of law. Which of the
following is the most likely example of a possible TREC penalty?
Samantha's license is suspended and she is fined.
Samantha is charged with a felony.
Samantha receives a mild warning.
Samantha receives a short prison sentence. -✓✓Samantha's license is suspended and
she is fined.
• What is the primary purpose of the Broker-Lawyer Committee?
to arbitrate real estate contract disputes
to promulgate transaction forms, making them voluntary or required
to create and codify real estate rules for TREC
to create, edit, and recommend contract forms to TREC -✓✓to create, edit, and
recommend contract forms to TREC
• The ???? committee creates, edits, and recommends contact forms. ??? then has the
power to approve, promulgate, or dismiss those contract forms. -✓✓The Broker-Lawyer
committee creates, edits, and recommends contact forms. TREC then has the power to
approve, promulgate, or dismiss those contract forms.
• A form that TREC requires agents to use is called a(n):
approved contract
unilateral contract
promulgated contract
committee contract -✓✓promulgated contract
• How many brokers are on the Broker-Lawyer Committee?
3
6
4
9 -✓✓6
• Marissa, a license holder, is assisting a seller in the sale of their condo. Does she
need to use a promulgated contract?
No. There are no promulgated contracts in Texas.
Yes. She'll need to use the Condominium Contract.
No. Marissa can write up the contract herself.
Yes. She'll need to use the Residential Contract. -✓✓Yes. She'll need to use the
Condominium Contract.
• An example of a TREC promulgated contract is the:
Improved Property Contract
,Farm and Ranch Contract
One to Five Residential Contract (Resale)
Condominium and Co-op Contract -✓✓Farm and Ranch Contract
• Which law protects consumers from fraudulent schemes?
Statute of Limitations
Deceptive Trade Practices Act
Statute of Frauds
Doctrine of Laches -✓✓Deceptive Trade Practices Act
• ??? law is law derived from past judicial decisions of courts. ???? law refers to laws
formally created by lawmakers, such as legislatures. -✓✓Common law is law derived
from past judicial decisions of courts. Statutory law refers to laws formally created by
lawmakers, such as legislatures.
• What is real estate?
land and water
improvements and water
land and improvements
land, water, and improvements -✓✓land and improvements
• Thanks to the rule of capture, surface right owners have the right to:
planes (if the planes cross over their property)
oil (if they bring it up to the surface)
groundwater (if they can pump it up to the surface)
rivers (if the body of water touches their property) -✓✓groundwater (if they can pump it
up to the surface)
• If Jenna has the water rights to a property, she has the rights to use:
the groundwater
the well
the rainwater
the stream -✓✓the stream
*a river or stream.
• What is a fixture?
real property that's transformed into an abstract
personal property that's transformed into an abstract
personal property that's transformed into real property
real property that's transformed into personal property -✓✓personal property that's
transformed into real property
• Shane bought a ceiling fan from Home Depot. It's still in the box and not attached to
the ceiling. What is it considered?
a cool gadget
, annexation
real property
personal property -✓✓personal property
• A seller has a flat-screen TV. To mount the TV, the seller puts brackets on the wall.
What are the brackets considered?
a nuisance
personal property
real property
personalty -✓✓real property
• Jane is selling her house and wants to sell the washer to the buyer as well. The
washer is not annexed to the real estate and is considered personal property. What kind
of document should Jane's license holder use to transfer ownership of the washer?
contract
notepad
bill of sale
deed -✓✓bill of sale
• Jami has a beautiful 10-year-old oak tree planted in her backyard. What is the oak tree
considered to be?
fixture
personal property
real estate
annexation -✓✓real estate
• What is NOT a unique characteristic of land?
inherent value
immobility
indestructibility
non-homogeneity -✓✓inherent value
*Indestructibility, non-homogeneity, and immobility are all part of land's unique
characteristics. Inherent value is not one of land's unique characteristics.
• What are land's economic characteristics?
abundant, moveable, permanent, everywhere
indestructibility, immobility, non-homogeneity, abundant
moveable, modification, investment, permanent
scarcity, situs (location), modification, fixity -✓✓scarcity, situs (location), modification,
fixity
• When a married couple purchases a home in Texas, who is required to sign the deed?
both partners
whoever has the nicest signature
one partner
