Law of Contracts - CHAMPIONS TEST
2023 with complete solution
Wrongful or criminal deception intended to result in financial or personal gain is called: -
Correct Answer fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a lease
period not to exceed: - Correct Answer 90 days
__________ extend above the surface without limitation. - Correct Answer air rights
An example(s) of an appurtenance would be: - Correct Answer easements
There is no upper limit on the value of a Texas homestead. - Correct Answer true
A(n) __________ is one that combines some of the elements of a sale with a lease. -
Correct Answer lease purchase agreement
Which of the following requires a contract for the conveyance of real estate to be in
writing to be enforceable? - Correct Answer statute of frauds
If a broker receives more than one offer on a property: - Correct Answer All must be
presented to the seller unless the seller has instructed the broker otherwise
The most common form of financing used by buyers is: - Correct Answer third party
financing
A(n) __________ is a provision in a contract that requires that a certain act or event
happens in order for the contract to be binding on the party. - Correct Answer
contingency
The Lead-Based Paint Disclosure is: - Correct Answer A federal requirement for
residential property built prior to 1978
In Texas, real estate contracts are subject to satisfactory inspections. - Correct Answer
false
The term __________ is synonymous with contingent. - Correct Answer subject to
Real estate agents play a role that includes arranging for the pre-qualification / pre-
approval of buyers. - Correct Answer true
Rule P-53 of the Texas Department of Insurance states that Title Companies: - Correct
Answer Cannot provide food and beverages for a picnic for a single firm, Cannot
, provide an annual party for a single firm, Cannot provide continuing education classes
unless they charge the market rate for those classes
Bill is the buyer purchasing a property from Sally. All contingencies have been met and
the parties are ready to close. One day prior to 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___________________________. - Correct
Answer 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 for 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: - Correct Answer Engaged in the unlawful
practice of law
The four economic characteristics of land are: scarcity, fixity, situs and ________. -
Correct Answer modification
Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a property that is
listed for $199,500. In a recent phone conversation, the seller told Joe he would accept
no less than $185,000 for the property. Knowing the seller's "bottom line," what should
Joe do with the offer? - Correct Answer Joe should present the offer to the seller
An abstract of title is: - Correct Answer a complete written history of title
an option is: - Correct Answer a unilateral contract
A seller is going to continue to occupy a property for two days after closing. In this case,
the parties should use the Buyer's Temporary Residential Lease form. - Correct Answer
false
A contract in which only one party is obligated to perform is a________ contract. -
Correct Answer unilateral
For tax prorations: - Correct Answer If taxes are not paid at or prior to closing the buyer
shall pay for the current year, If taxes for the current year vary from the amount prorated
at closing, the parties shall adjust the prorations when tax statements for the current
year are available, The tax proration may be calculated taking into consideration any
change in the exemptions that will affect the current year's taxes
________ is the right of the government to regulate and control the way land is used. -
Correct Answer police power
2023 with complete solution
Wrongful or criminal deception intended to result in financial or personal gain is called: -
Correct Answer fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a lease
period not to exceed: - Correct Answer 90 days
__________ extend above the surface without limitation. - Correct Answer air rights
An example(s) of an appurtenance would be: - Correct Answer easements
There is no upper limit on the value of a Texas homestead. - Correct Answer true
A(n) __________ is one that combines some of the elements of a sale with a lease. -
Correct Answer lease purchase agreement
Which of the following requires a contract for the conveyance of real estate to be in
writing to be enforceable? - Correct Answer statute of frauds
If a broker receives more than one offer on a property: - Correct Answer All must be
presented to the seller unless the seller has instructed the broker otherwise
The most common form of financing used by buyers is: - Correct Answer third party
financing
A(n) __________ is a provision in a contract that requires that a certain act or event
happens in order for the contract to be binding on the party. - Correct Answer
contingency
The Lead-Based Paint Disclosure is: - Correct Answer A federal requirement for
residential property built prior to 1978
In Texas, real estate contracts are subject to satisfactory inspections. - Correct Answer
false
The term __________ is synonymous with contingent. - Correct Answer subject to
Real estate agents play a role that includes arranging for the pre-qualification / pre-
approval of buyers. - Correct Answer true
Rule P-53 of the Texas Department of Insurance states that Title Companies: - Correct
Answer Cannot provide food and beverages for a picnic for a single firm, Cannot
, provide an annual party for a single firm, Cannot provide continuing education classes
unless they charge the market rate for those classes
Bill is the buyer purchasing a property from Sally. All contingencies have been met and
the parties are ready to close. One day prior to 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___________________________. - Correct
Answer 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 for 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: - Correct Answer Engaged in the unlawful
practice of law
The four economic characteristics of land are: scarcity, fixity, situs and ________. -
Correct Answer modification
Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a property that is
listed for $199,500. In a recent phone conversation, the seller told Joe he would accept
no less than $185,000 for the property. Knowing the seller's "bottom line," what should
Joe do with the offer? - Correct Answer Joe should present the offer to the seller
An abstract of title is: - Correct Answer a complete written history of title
an option is: - Correct Answer a unilateral contract
A seller is going to continue to occupy a property for two days after closing. In this case,
the parties should use the Buyer's Temporary Residential Lease form. - Correct Answer
false
A contract in which only one party is obligated to perform is a________ contract. -
Correct Answer unilateral
For tax prorations: - Correct Answer If taxes are not paid at or prior to closing the buyer
shall pay for the current year, If taxes for the current year vary from the amount prorated
at closing, the parties shall adjust the prorations when tax statements for the current
year are available, The tax proration may be calculated taking into consideration any
change in the exemptions that will affect the current year's taxes
________ is the right of the government to regulate and control the way land is used. -
Correct Answer police power
