Law of Contracts | Actual Questions and
Answers | 2026 Update | 100% Correct -
Verified
‣ In a residential lease with a "right of first refusal" provision:
a) The price is set when the lease agreement is negotiated
b) The tenant has promised to buy the property
c) The TREC promulgated form must be used
d) The tenant has the right to match or better any offer the landlord receives to prevent
the property from being sold to someone else -✓✓d) The tenant has the right to match
or better any offer the landlord receives to prevent the property from being sold to
someone else
‣ Bill is purchasing a property from Sally. All contingencies have been met, and the
parties are ready to close. One day before closing, Sally announces that she has
changed her mind and is going to keep the property. Bill is determined to complete the
purchase and acquire the property. The only default remedy in the contract that could
result in Bill acquiring the property is__
a) Monetary damages
b) Liquidated damages
c) Punitive damages
d) Specific performance -✓✓d) Specific performance
‣ Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a contract. The
seller told Elmer that he wanted to stay in the property at least a week after closing.
Elmer said that would be no problem and entered the following text to Paragraph 11,
"Seller and Buyer agree that Seller will remain in the Property for 7 days after closing
and funding." In this case, Elmer has:
a) Properly represented the interests of both parties
b) Completed the contract according to established regulations and procedures
c) Engaged in the unlawful practice of law
d) Violated numerous provisions of RESPA -✓✓c) Engaged in the unlawful practice of
law
‣ Texas Veteran's Land Board's Housing Assistance Program loans can be:
a) Used only be disabled Texas veterans
b) Used to purchase either commercial or residential property
c) Used only for VA-guaranteed loans
d) Used for FHA, VA, or conventional loans -✓✓d) Used with FHA, VA, or conventional
loans
‣ The four economic characteristics of land are scarcity, fixity, situs, and ___.
a) Modification
, b) Indestructibility
c) Non-homogeneity
d) Immobility -✓✓a) Modification
‣ Joe is an agent at Tried and True Realty. He gets $150, 000 offer on a property that is
listed for $199,500. In a recent phone conversation, the seller told Hoe he would accept
no less than $185,000 for the property. Knowing the seller's "bottom line," what should
Joe do with the offer?
a) Joe should notify the buyer that he will not present the offer because it is too low.
b) Joe should hold on to the offer for several days just to see if a better one comes in.
c) Joe should call the buyer and insist that a more satisfactory offer be presented.
d) Joe should present the offer to the seller. -✓✓d) Joe should present the offer to the
seller.
‣ An abstract of title is a(n) ___.
a) Title commitment
b) Attorney's opinion of title
c) Complete written history of title
d) Summary of the current conditions of the title -✓✓c) Complete written history of title
‣ The Buyer and Seller Temporary Residential Lease forms are good for any period up
to ___.
a) 14 days
b) 30 days
c) 60 days
d) 90 days -✓✓d) 90 days
‣ An options is a(n) ___.
a) Unilateral contract
b) Sales contract
c) Lease
d) Bilateral contract -✓✓a) Unilateral contract
‣ The Special Provisions paragraph of the contract allows license holders to insert:
a) Information about the seller's temporary lease for 3o days
b) Information about a buyer's temporary lease for 90 days
c) Information about the licensed status of the seller
d) Factual or business details for which there is no TREC form -✓✓d) Factual or
business details for which there is no TREC form
‣ At closing, ongoing expenses are prorated between the buyer and seller. Proration is
most commonly associated with ___.
a) The buyer's loan
b) The seller's loan
c) The title policy
Answers | 2026 Update | 100% Correct -
Verified
‣ In a residential lease with a "right of first refusal" provision:
a) The price is set when the lease agreement is negotiated
b) The tenant has promised to buy the property
c) The TREC promulgated form must be used
d) The tenant has the right to match or better any offer the landlord receives to prevent
the property from being sold to someone else -✓✓d) The tenant has the right to match
or better any offer the landlord receives to prevent the property from being sold to
someone else
‣ Bill is purchasing a property from Sally. All contingencies have been met, and the
parties are ready to close. One day before closing, Sally announces that she has
changed her mind and is going to keep the property. Bill is determined to complete the
purchase and acquire the property. The only default remedy in the contract that could
result in Bill acquiring the property is__
a) Monetary damages
b) Liquidated damages
c) Punitive damages
d) Specific performance -✓✓d) Specific performance
‣ Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a contract. The
seller told Elmer that he wanted to stay in the property at least a week after closing.
Elmer said that would be no problem and entered the following text to Paragraph 11,
"Seller and Buyer agree that Seller will remain in the Property for 7 days after closing
and funding." In this case, Elmer has:
a) Properly represented the interests of both parties
b) Completed the contract according to established regulations and procedures
c) Engaged in the unlawful practice of law
d) Violated numerous provisions of RESPA -✓✓c) Engaged in the unlawful practice of
law
‣ Texas Veteran's Land Board's Housing Assistance Program loans can be:
a) Used only be disabled Texas veterans
b) Used to purchase either commercial or residential property
c) Used only for VA-guaranteed loans
d) Used for FHA, VA, or conventional loans -✓✓d) Used with FHA, VA, or conventional
loans
‣ The four economic characteristics of land are scarcity, fixity, situs, and ___.
a) Modification
, b) Indestructibility
c) Non-homogeneity
d) Immobility -✓✓a) Modification
‣ Joe is an agent at Tried and True Realty. He gets $150, 000 offer on a property that is
listed for $199,500. In a recent phone conversation, the seller told Hoe he would accept
no less than $185,000 for the property. Knowing the seller's "bottom line," what should
Joe do with the offer?
a) Joe should notify the buyer that he will not present the offer because it is too low.
b) Joe should hold on to the offer for several days just to see if a better one comes in.
c) Joe should call the buyer and insist that a more satisfactory offer be presented.
d) Joe should present the offer to the seller. -✓✓d) Joe should present the offer to the
seller.
‣ An abstract of title is a(n) ___.
a) Title commitment
b) Attorney's opinion of title
c) Complete written history of title
d) Summary of the current conditions of the title -✓✓c) Complete written history of title
‣ The Buyer and Seller Temporary Residential Lease forms are good for any period up
to ___.
a) 14 days
b) 30 days
c) 60 days
d) 90 days -✓✓d) 90 days
‣ An options is a(n) ___.
a) Unilateral contract
b) Sales contract
c) Lease
d) Bilateral contract -✓✓a) Unilateral contract
‣ The Special Provisions paragraph of the contract allows license holders to insert:
a) Information about the seller's temporary lease for 3o days
b) Information about a buyer's temporary lease for 90 days
c) Information about the licensed status of the seller
d) Factual or business details for which there is no TREC form -✓✓d) Factual or
business details for which there is no TREC form
‣ At closing, ongoing expenses are prorated between the buyer and seller. Proration is
most commonly associated with ___.
a) The buyer's loan
b) The seller's loan
c) The title policy
